China's instant tax refunds will enhance tourist convenience, boost spending

China has rolled out a nationwide instant tax refund system for overseas tourists, eliminating airport processing delays and allowing visitors to immediately reinvest refunded money during their stays.

The new policy allows international travelers shopping at designated stores to receive immediate cash refunds in Chinese yuan after completing credit card pre-authorization procedures and signing agreements.

Tourists pose for photos at the Yuyuan Garden area in east China's Shanghai, Feb. 1, 2025. (Xinhua/Chen Haoming)

This upgrade to China's previous departure tax refund system means foreign visitors no longer need to wait until airport departure to process their refunds, creating a more seamless shopping experience.

By receiving tax refunds immediately after purchases, visitors can use these funds for additional shopping during their stay, providing greater flexibility for travelers and potentially boosting tourism spending.

Data shows the departure tax refund program significantly boosted tourism spending in 2024, with overseas visitors claiming refunds increasing 230 percent, refundable sales growing 120 percent and tax rebate amounts rising 130 percent compared to 2023.

The nationwide policy implementation coincides with an increase in international visitors to China. As a world-leading manufacturing powerhouse, China produces a wide range of high-quality products at competitive prices that are now more accessible to tourists with the simplified refund process.

The policy demonstrates China's openness to international visitors and reinforces the country's commitment to improving its business environment while stimulating inbound tourism spending.