China is pushing a new wave of tourism and trade initiatives that pair aggressive consumption stimulus with a broader pledge to keep its economy open to the world.

From nationwide spending campaigns and visa liberalization to the launch of a landmark free trade port in Hainan, Beijing is betting that tourism, services and high-quality imports can reinvigorate growth and cement the country’s role in global commerce in 2025 and beyond.

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New Consumption Campaigns Aim to Unlock Domestic Spending Power

After a slower-than-expected recovery in household confidence, Chinese policymakers have elevated consumption to the top of the 2025 economic agenda.

At a national commerce work conference in Beijing in January, officials announced a renewed “special campaign” to stimulate consumption, with plans to deepen consumer goods trade-in schemes, expand digital and service-based consumption and roll out more diversified shopping scenarios in major cities and smaller hubs alike.

The program builds on a series of measures adopted since late 2024, including subsidies for trading in older household appliances and vehicles for newer, greener models, and targeted incentives for sectors like culture, entertainment and tourism.

Local authorities from Shanghai to Dongguan are also staging extended “cross-year” consumption seasons, stretching traditional holiday discount periods across several weeks to drive sustained foot traffic and travel, rather than short bursts of spending around New Year holidays.

Officials say the emphasis this year is on aligning supply with an increasingly sophisticated demand profile. That includes encouraging retailers and service providers to offer more distinctive, higher-quality products, improving consumer finance options, and curbing destructive price wars and overcapacity in certain industries that have weighed on profitability and wage expectations. By improving both what is on offer and how people pay for it, Beijing hopes to make tourism, leisure and services a stronger, more reliable pillar of domestic demand.

Tourism Surge Highlights Economic and Cultural Ambitions

Tourism is emerging as one of the clearest beneficiaries of China’s consumption pivot. Official data show that domestic residents made more than 5.6 billion trips inside the country in 2024, spending nearly 5.8 trillion yuan on travel. Both figures registered double-digit growth year on year, underscoring the sector’s growing weight in China’s services-heavy growth model.

The trend accelerated during the 2025 Spring Festival holiday, which saw a record 501 million domestic tourist trips and spending of over 677 billion yuan across the weeklong break. Passenger volumes across rail, road, air and water transport reached more than 2.3 billion trips during the holiday period, reflecting a broad resurgence of mobility after years of pandemic-related disruption.

Authorities and industry observers say the tourism boom is about more than short-term spending. It is also central to China’s efforts to showcase its cultural heritage, from temple fairs and dragon dances to lesser-known folk traditions, as an engine for regional development and international soft power. The Spring Festival’s addition in late 2024 to the UNESCO list of intangible cultural heritage has further lifted its appeal, giving cities and scenic areas a powerful marketing tool as they compete for visitors both at home and abroad.

To complement domestic tourism growth, China has significantly relaxed entry rules for foreign visitors, framing the changes as a cornerstone of its high-level opening-up strategy. By mid-2025, visa-free entry of up to 30 days covers citizens from more than 70 countries, predominantly across Europe and parts of Asia, Latin America and the Middle East. A separate 240-hour visa-free transit policy has widened the pipeline of short-stay visitors who combine business trips with leisure travel.

The impact is notable. The number of foreign tourist trips nearly doubled in 2024 to around 27 million and continued to rise into 2025, with inbound arrivals during the Spring Festival period leaping more than 150 percent from a year earlier according to tourism platforms and immigration authorities. Data from online travel operators point to triple-digit growth in inbound bookings from nearby markets such as Japan, South Korea and Southeast Asia, while long-haul arrivals from Europe, Canada and Australia are also surging.

Tour operators report that international guests are increasingly seeking “deep travel” experiences beyond the traditional itineraries of Beijing, Shanghai and Xi’an. Smaller cities and rural destinations that stage distinctive Spring Festival and cultural events are reporting sharp jumps in foreign bookings, aided by local governments that are enhancing signage, multilingual services and digital payments to smooth the visitor experience.

For Beijing, these inbound flows serve dual purposes. They feed demand for accommodation, retail, dining and culture, directly supporting jobs and local tax revenues. At the same time, they strengthen person-to-person ties and create new channels for trade and investment, as many foreign visitors are businesspeople or professionals who explore commercial opportunities during their stay.

Hainan Free Trade Port Becomes a Flagship of Opening-Up

Nowhere is China’s attempt to fuse tourism promotion with trade liberalization more visible than on the southern island of Hainan. In December 2025, the province launched island-wide special customs operations for the Hainan Free Trade Port, turning the entire island into a special customs supervision zone. Officials describe it as the world’s largest free trade port by area and a milestone in China’s push for high-standard opening-up.

The new regime is built around a “first line” and “second line” model. Goods moving between Hainan and overseas markets enjoy far looser customs procedures, with zero tariffs applied to a greatly expanded list of imports, alongside streamlined clearance and lower compliance costs. Goods entering the Chinese mainland from Hainan, by contrast, are treated as domestic trade and subject to regular customs controls at the “second line,” a design intended to spur experimentation without undercutting national regulatory frameworks.

Crucially for tourism and consumption, the list of zero-tariff products has been enlarged from about 1,900 categories to more than 6,600, covering roughly three-quarters of all taxable items. Many imported consumer goods, from premium food and beverages to fashion, yachts and high-end equipment, can now enter Hainan duty-free. If such goods are processed on the island and achieve at least 30 percent value-added content, they can move into the mainland market without tariffs, creating powerful incentives for manufacturers, logistics providers and retailers to establish operations there.

Beijing is also positioning Hainan as a test bed for liberalizing trade in services, with the province introducing China’s first negative list for cross-border services trade. Sectors like finance, professional services, transport, healthcare and education are being opened wider to foreign investors. Combined with the island’s tropical climate, beaches and growing network of international flights, the free trade port is designed to operate both as a tourism magnet and as a gateway for global firms into China’s vast consumer market.

Free Trade Zones and Digital Trade Support New Trade Corridors

Beyond Hainan, China is advancing a nationwide network of 22 free trade zones that officials view as laboratories for broader trade and investment reforms. The foreign investment “negative list” that sets out sectors off-limits to overseas capital has been cut from 93 items in 2017 to fewer than 30 in 2025, a move that regulators argue demonstrates a clear long-term commitment to opening key segments of the economy.

Flagship zones such as the Shanghai Free Trade Zone have led on financial liberalization, offshore trade and digital economy regulations. Shanghai’s data exchange, for example, has seen transaction volumes multiply, as authorities develop frameworks for trading data as a factor of production while maintaining security and privacy controls. Officials say the lessons from these zones will gradually inform nationwide rules that facilitate cross-border e-commerce, digital services exports and more efficient customs procedures.

For global tourism and trade partners, these developments matter because they reduce friction for companies that support or depend on travel flows, from airlines and hotel chains to logistics platforms and payment providers. Easier market entry, more predictable regulation and improved data flows can help international firms design travel products, loyalty schemes and services tailored to Chinese consumers, while also integrating Chinese destinations into global booking and marketing systems more seamlessly.

Tourism as a Catalyst for Regional Development and Trade

Central and provincial authorities increasingly describe tourism as a “comprehensive industry” that binds together transportation, retail, culture, sports, technology and trade. As domestic and inbound tourism accelerate, cities are moving to turn visitor traffic into long-term economic linkages.

Hubs such as Wuhan and Harbin are organizing extended consumption festivals around major events like the Spring Festival and the Asian Winter Games, using concerts, exhibitions, night markets and ice and snow carnivals to attract travelers and promote local brands. Coastal cities and border provinces, including those along the Belt and Road routes, are pairing tourism campaigns with investment expos and trade fairs, hoping to persuade visitors to return as business partners or long-term investors.

Rural revitalization is another priority. Authorities are encouraging villages with distinctive landscapes or cultural traditions to develop homestays, agritourism and craft industries that cater to both domestic and foreign visitors. The idea is that tourism revenue can help modernize infrastructure, upgrade local industries and create jobs, reducing the urban–rural development gap and generating new nodes in domestic supply chains.

In practice, this strategy hinges on continuing to open China’s services sector to private and foreign participation, while improving standards in areas like environmental protection and food safety. Officials contend that by pushing tourism operators and destination managers to meet the expectations of international travelers, they can also elevate quality for domestic consumers, supporting the broader consumption upgrade agenda.

Balancing Openness with Economic Security

China’s renewed emphasis on opening-up in tourism and trade comes against a backdrop of shifting global supply chains and persistent geopolitical tensions. Policymakers are explicit that initiatives such as Hainan’s free trade port, wider visa-free policies and a slimmer negative list are designed to demonstrate that the country remains committed to global integration, even as some foreign companies hedge exposure.

At the same time, Beijing is pursuing what it describes as “institutional opening-up,” where new freedoms in trade, investment and data flows are paired with stricter risk controls. The two-line customs framework in Hainan, for instance, is meant to allow freer movement of goods and capital while preserving the mainland’s ability to manage smuggling risks, illicit financial flows and supply chain vulnerabilities.

In tourism, officials are working to make payment, transportation and communications easier for foreigners, expanding the use of bank cards and foreign e-wallets and improving customer support in airports and rail hubs. But they are also emphasizing data security, content regulation and public security requirements in events and attractions that cater to large international crowds. The challenge for policymakers will be to maintain a credible level of openness that keeps China attractive to visitors and investors while managing domestic concerns about inequality, competition and social change.

FAQ

Q1. What are China’s main goals in its new consumption strategy?
China aims to boost domestic demand by encouraging households to spend more on services, tourism and upgraded consumer goods, while improving the quality and variety of what is offered. The strategy is also meant to support industrial upgrading, create jobs in services and give businesses a more predictable environment for long-term investment.

Q2. How is tourism linked to China’s wider opening-up policies?
Tourism serves as both a driver of consumption and a bridge for trade and investment. By easing visa restrictions, improving travel infrastructure and promoting cultural attractions, China hopes to attract more foreign visitors who spend locally and build lasting business and cultural ties that support trade and investment flows.

Q3. What is special about the Hainan Free Trade Port for travelers and companies?
Hainan operates as a special customs supervision zone with zero tariffs on most imported goods, simplified customs procedures and wider opening in services. For travelers, this means a growing selection of duty-free shopping and international-standard resorts. For companies, it offers incentives to base tourism, logistics, processing and services operations on the island while using it as a platform to reach the mainland market.

Q4. How have visa-free policies changed inbound tourism to China?
The expansion of unilateral visa-free entry to more than 70 countries and longer visa-free transit options have sharply reduced barriers for many travelers. Travel agencies report surging bookings from Europe and regional neighbors, and official data show that foreign tourist numbers have risen rapidly, particularly around major holidays like Spring Festival.

Q5. Are smaller Chinese cities benefiting from the tourism push?
Yes. While major cities remain top draws, smaller destinations that highlight unique festivals, traditional architecture or natural scenery are seeing strong growth in both domestic and foreign arrivals. Many have introduced multilingual services, upgraded transport links and digital ticketing to capture more of this traffic.

Q6. How do consumption campaigns impact everyday Chinese travelers?
Consumption campaigns often translate into broader and longer discount periods, festival-themed events, travel vouchers and subsidies for cultural and leisure activities. For ordinary travelers, this can mean cheaper tickets, more entertainment options and incentives to explore new regions during off-peak periods.

Q7. What role do free trade zones beyond Hainan play in tourism and trade?
Free trade zones such as those in Shanghai, Tianjin and Guangdong act as testing grounds for financial reforms, cross-border e-commerce and digital trade rules. These changes make it easier for international airlines, hotel groups, payment providers and online platforms to operate in China, indirectly supporting tourism by integrating Chinese destinations into global networks.

Q8. How is China trying to ensure that tourism growth is sustainable?
Authorities are stressing higher standards in environmental protection, cultural heritage preservation and safety. Many projects now require environmental impact assessments and emphasize limits on construction in sensitive areas. There is also growing support for off-season travel and lesser-known destinations to ease pressure on overcrowded sites.

Q9. What opportunities do these policies create for foreign businesses?
Foreign firms in hospitality, entertainment, transportation, retail, finance and digital services can find new openings in China’s expanding tourism and consumption markets. Opportunities range from developing attractions and resorts to offering payment, booking and data services that support the travel ecosystem, particularly in free trade zones and major tourism clusters.

Q10. How might these strategies affect global travelers in the near future?
If current policies continue, global travelers can expect easier entry procedures, more flight options, expanded duty-free offerings and a wider choice of experiences that combine traditional culture with modern amenities. China is positioning itself as a year-round destination where tourism, shopping and business travel increasingly intersect.