BEIJING, 11 March 2026 – China is increasingly turning to foreign tourists as a new driver of consumption, as domestic households continue to tighten spending amid economic uncertainty.
Officials in Beijing are promoting inbound tourism and overseas visitor spending as a way to inject fresh demand into the world’s second-largest economy, particularly as local consumers remain cautious about major purchases.
Foreign Visitors Seen as a Consumption Catalyst
Chinese policymakers have highlighted shopping by foreign tourists as an emerging opportunity to support the country’s retail and services sectors. One anecdote shared by Culture and Tourism Minister Sun Yeli described a group of foreign travellers who paid excess baggage fees after purchasing 40 boxes of Chinese goods in Shanghai, a story officials cited as evidence of the spending potential of overseas visitors.
The government hopes such spending will help revitalise consumption, particularly in sectors such as retail, tourism, hospitality and transport.
Tourism Recovery Gaining Momentum
Inbound tourism has been gradually recovering after the pandemic-era collapse in global travel.
China recorded more than 150 million inbound trips in 2025, a 17% increase from the previous year, according to official figures.
Foreign visitors’ spending in China also surged, exceeding US$130 billion in 2025, representing nearly 40% growth from 2024.
The government has expanded visa-free travel policies to 50 countries, while transit visa-free arrangements now cover 55 countries, making it easier for travellers to visit China on short notice.
“Shopping in China” Strategy
To attract more international visitors, Beijing has been promoting the concept of “Shopping in China” (Zhongguo Gou), encouraging tourists to treat the country as a retail destination.
Foreign tourists are increasingly buying a mix of traditional and modern Chinese products, including:
- Smartphones and consumer electronics
- Drones and virtual-reality devices
- Cultural and creative merchandise
- Traditional souvenirs such as tea, silk and ceramics
Authorities have also made it easier for travellers to pay digitally by allowing foreign bank cards to be linked to mobile payment platforms like WeChat Pay and Alipay.
Structural Challenges Remain
Despite the tourism push, economists warn that foreign visitor spending alone will not solve China’s deeper consumption challenges.
Households in China tend to save a large portion of their income, a phenomenon known as “precautionary savings”, as many families remain concerned about job security, healthcare costs and retirement support.
As a result, household consumption accounts for less than 40% of China’s GDP, far below levels in developed economies such as the United States, where consumer spending makes up about 68% of GDP, and Japan at roughly 55%.
Tourism as a Supplement, Not a Solution
Economists say the rise in inbound tourism will provide only a supplementary boost to the economy rather than a transformative solution to China’s demand problem.
Still, policymakers see foreign tourism as a useful lever to stimulate service-sector activity, which can create jobs quickly and support the country’s transition toward a more services-driven economy.
As China navigates a complex economic environment marked by slower growth and cautious consumers, attracting foreign visitors to spend in the country may become an increasingly important strategy in sustaining economic momentum.
