China is making a strategic push to establish Shanghai, Beijing, Guangzhou, Tianjin, and Chongqing as international consumption center cities, aiming to strengthen their global economic influence and enhance domestic consumption. The latest government measures provide comprehensive support across eight key areas, ensuring these cities develop into premier destinations for international commerce, tourism, and cultural exchange.
Key Policy Measures to Boost Urban Consumption:
Strengthening the Startup Economy and Global Brand Presence
To position these five cities as global retail hubs, China will:
- Host high-profile product launch events for domestic and international brands.
- Facilitate customs clearance for imported new products to accelerate market entry.
- Encourage international brands to establish flagship stores in these cities.
- Foster cross-border collaborations between legacy brands and emerging consumer players
Enhancing Accessibility for International Travelers
China aims to streamline entry procedures and improve the experience for international visitors by:
- Expanding the visa-free entry program and improving transit visa policies.
- Simplifying customs clearance and providing comprehensive arrival services, including currency exchange and mobile payment integration.
- Adding new direct flight routes to key international markets.
- Encouraging businesses to accept overseas bank cards and e-wallets, facilitating seamless transactions for foreign visitors.
- Developing international consumption districts with enhanced multilingual services.
Leveraging Duty-Free Shopping to Stimulate Spending
The plan focuses on expanding and optimizing duty-free shopping, which plays a significant role in increasing consumer spending:
- Establishing city-center duty-free stores to attract domestic and international shoppers.
- Expanding the departure tax refund program, making it easier and more efficient for tourists to claim rebates.
- Encouraging domestic brands to sell premium products through duty-free channels.
Expanding Large-Scale Entertainment and Cultural Events
A key driver of urban consumption is the events economy. The government will:
- Support the hosting of high-profile international sports, performing arts, and cultural events.
- Streamline approval processes for commercial performances and sports competitions to increase ticket availability and attendance.
- Reduce regulatory burdens, allowing for more efficient planning and execution of large-scale events.
Upgrading Commercial Infrastructure and Retail Experiences
China is launching pilot projects to modernize commercial spaces, focusing on:
- Developing next-generation retail ecosystems that integrate AI, big data, and virtual reality.
- Expanding automobile-related consumption, including RV tourism and motorsports events.
- Establishing multi-format business districts that combine retail, entertainment, and lifestyle offerings.
Expanding High-Quality Service Consumption
Beyond retail, the plan seeks to elevate service-related industries by:
- Developing gastronomic tourism, including promotion of regional cuisines and specialty dining experiences.
- Enhancing hospitality services to support the integration of tourism, wellness, and leisure.
- Strengthening sports event tourism, tapping into the growing demand for experiential travel.
- Expanding low-altitude tourism, including drone-based logistics and aerial sightseeing in designated areas.
Driving Smart Consumption through Innovation
Technology will be a key enabler of the consumption upgrade, with policies promoting:
- The integration of AI, virtual reality, and big data into consumer experiences.
- Incentives for the adoption of smart home appliances and electric vehicles.
- The continuation of consumer goods trade-in programs to encourage sustainable consumption.
Strengthening International Promotion and Outreach
China is actively positioning these cities on the global stage by:
- Enhancing international city partnerships to boost economic and cultural exchanges.
- Utilizing embassies and consulates to promote investment opportunities and consumer activities.
- Increasing the visibility of China’s consumption policies and business opportunities in global markets.
Implications for Businesses and Investors
These measures signal new growth opportunities for companies looking to tap into China’s consumer-driven economy. Businesses in retail, entertainment, hospitality, and tourism stand to benefit from the increased focus on international engagement and infrastructure development.
With improved market access, streamlined regulations, and enhanced consumer experiences, China is positioning these five cities as world-class consumption hubs, reinforcing its role as a major force in the global economy.