Spurred by the government's "Shopping in China" initiative and other consumption-supporting measures, customs authorities in top-tier cities reported a strong increase in tax refund volumes in 2025 and forecast further growth this year.

According to Guangzhou Customs, Guangzhou Baiyun International Airport Customs in Guangdong province processed more than 50,000 departure tax-refund applications from overseas travelers in 2025, with the total value of refund claims exceeding 496 million yuan ($71.3 million).

The figures show year-on-year increases of 470 percent in the number of applications and 60 percent in the total refund amount.

At the tax refund counter of Terminal 1 at the Guangzhou airport, French traveler Mu Voungvui was recently seen completing his tax refund procedures. Holding up his refund slip, he said his trip to China had been highly rewarding.

"I bought a DJI Osmo Pocket 3 gimbal camera and the tax-refund process was very convenient," he said, adding that with a refund rate of 11 percent, he received 414.5 yuan as the tax refund.

Feng Ruilin, an official at Guangzhou Baiyun International Airport Customs, said popular tax-refund purchases range from clothing, handbags and jewelry, to technology products such as small drones, sports cameras and smartphones.

The growth in departure tax-refunds comes amid broader efforts to upgrade China's consumption environment. Launched in April 2025, the "Shopping in China" initiative aims to create a more internationally friendly consumption landscape and enhance the country's appeal as a global consumption hub through measures such as streamlined visa procedures and improved departure tax-refund arrangements.

Zhu Mingkuang, an official with the passenger inspection unit at Shanghai Pudong International Airport Customs, said that the continued optimization of departure tax-refund policies and upgrades to related services have played a key role in boosting inbound consumption.

Zhu noted that the reduction of the minimum purchase threshold from 500 yuan to 200 yuan in April last year has encouraged more foreign travelers to shop and claim tax refunds, leading to a sharp rise in business volumes.

"Since October 2025, the volume of departure tax-refund transactions at Shanghai Pudong International Airport has consistently exceeded 1,000 applications per day on average," he said, adding that the momentum has continued into January of this year.

Last year, Shanghai Customs verified 222,000 departure tax-refund items, soaring 130 percent year-on-year and accounting for half of the national total.

Beyond improvements in tax-refund processing, local governments have also moved to strengthen supporting retail infrastructure. In Shanghai, the municipal government has guided the transformation and launch of downtown duty-free stores, injecting new momentum into the city's development as an international consumption hub and its tourism economy.

In the Chinese capital, Beijing Customs verified a total of 64,000 departure tax-refund applications, marking a year-on-year increase of 317 percent in 2025.

The total value of refund claims reached 1.35 billion yuan, up 74 percent year-on-year and surpassing 1 billion yuan for the first time since the departure tax-refund policy was introduced a decade ago.

Pan Yuting, an official with the passenger inspection unit at Beijing Capital International Airport Customs, said that at the beginning of 2025, about 40 departure tax-refund applications were typically processed during a single day at Terminal 3. That figure rose to around 170 per day in mid-January of this year, representing a substantial increase compared with the same period last year.

After purchasing a Louis Vuitton handbag valued at 19,820 yuan in Beijing and applying for a tax refund of 2,180 yuan on Jan 4 at Terminal 3 of Beijing Capital International Airport, Canadian traveler Davis Jordan said China's appeal to foreign visitors will continue to grow, as "tax-refund and duty-free services are highly cost-effective and make shopping here both attractive and worthwhile".