The benefits of China’s consumption upgrade


A group of tourists visiting a shopping street in Beijing. — AFP

SHANGHAI: Waiting in line for tax refunds, once a familiar scene for Chinese tourists at airports and designated tax-refund service points in luxury department stores such as Galeries Lafayette in Paris and Ginza Mitsukoshi in Tokyo, is fast becoming ubiquitous in large Chinese cities.

On the first weekend after the Spring Festival holiday in Beijing, long lines formed at tax-refund counters in the departure hall of Terminal 3 at Beijing Capital International Airport, as overseas visitors waited to reclaim value-added tax on purchases ranging from foreign cosmetics and designer handbags to China-made gimbal cameras and smartphones.

For many inbound travellers, this experience reflected not only the appeal of Chinese goods, but also the growing ease of shopping in a market that is becoming more open, efficient and globally connected.

As China deepens efforts to promote the “Shopping in China” initiative and a series of consumption-friendly measures, the potential of its vast consumer base is being tapped at a faster pace.

Imports are expanding in scale and quality as demand shifts towards premium products, advanced technologies and specialised services.

Officials from Beijing Customs said that China’s push to attract global shoppers and boost domestic consumption is enabling more global businesses to benefit from its consumption upgrade, supported by efforts to align standards, logistics and distribution channels.

At a trade fair in Guangzhou, Guangdong province, in January, importers showcased coffee, chia seeds and avocados from Latin America, dairy products from Europe and health supplements from South-East Asia and Australia.

Buyers from Chinese eCommerce platforms and retail chains moved briskly between booths, negotiating deals that could bring new products to millions of households.

At these trade fairs, it is clear that the integration of domestic consumption and foreign trade is helping overseas brands reach Chinese consumers more directly.

This integration shortens supply chains, reduces costs and enables faster responses to changing demand.

Beyond facilitating trade flows, China is expanding favourable trade measures for countries in the Global South, a move aimed at sharing development opportunities more broadly. — China Daily/ANN

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