China has updated its tax refund policy for foreign tourists, shifting from a refund-upon-departure model to a refund-upon-purchase model, the State Taxation Administration (STA) announced on Tuesday.
Under the new refund-upon-purchase policy, foreign visitors can instantly claim value-added tax (VAT) rebates at tax-free stores, enabling them to reuse the refunded amount in real time for further shopping. Previously, VAT rebates were only available for withdrawal upon departure.
The initiative was initially piloted in municipalities and provinces including Shanghai, Beijing, Guangdong, Sichuan, and Zhejiang, and now has the conditions for nationwide promotion.
The announcement noted that when overseas travelers purchase tax-refundable items at refund-upon-purchase stores and obtain credit card pre-authorization, they can collect an equal amount of tax refund on site.
When overseas travelers are leaving the country, customs will verify their identities and tax-refundable items. After the tax refund agency verifies the shopping tax refund information and confirms it is correct, it will immediately release the credit card pre-authorization guarantee and complete the departure tax refund matters, according to the announcement.
The announcement also clarifies that tax refund shops that are willing to provide refund-upon-purchase services can become shops of the kind after reaching an agreement with local tax refund agencies.
China updates tax refund policy for foreign tourists
U.S. tariff policies are posing risks to domestic consumption and financial markets, fueling inflation, disrupting business operations, and eroding global confidence in the U.S. dollar, said Daryl Guppy, an international financial analyst and CEO of Guppy Traders.
This comes as tariff measures introduced by Donald Trump administration are straining the domestic economy and deepening uncertainty nationwide, according to various media reports. CNN reports that the government's "chaotic trade wars" have left small businesses struggling, with soaring costs, disrupted supply chains, and stifled growth and expansion plans.
Meanwhile, three former U.S. presidents - Bill Clinton, Barack Obama, and Joe Biden - have warned against the Trump administration's policies in their recent remarks, breaking the tradition of former presidents refraining from publicly criticizing the sitting president, as noted by the Washington Post.
In a recent interview with China Global Television Network (CGTN), Guppy discussed the significant negative impacts of U.S. tariff measures, particularly their toll on the domestic economy.
"There are three domestic risks. The first is the inevitable increase in inflation. It's U.S. consumers that carry the burden of tariffs. The second is the financial markets. They are just beginning to fully appreciate the destructive impact tariffs are having on their business model. That’s why we are seeing some changes or delays in selected tariff categories. The third is the bond market, because this erratic tariff policy makes the world lose trust in the U.S. dollar and the security of U.S. treasuries," he said.
Guppy criticized the so-called "strategies" employed by Trump to boost government revenue during economic strain, highlighting that the president is manipulating markets to benefit his allies, disregarding the long-term consequences for the global trade system.
"The United States is bankrupt, and Trump is skilled at handling bankruptcy. First, you cut costs, that's DOGE, that's Elon Musk. Second, you generate income any way you can, that’s tariffs. Third, you reduce the cost of refinancing loans, that’s crushing the market and the Dow. Fourth, you try to defer loan repayments and that may involve converting debt into 50 or 100-year bonds or using a synthetic default on the payment of treasuries to stop payments to selected countries that hold U.S. treasuries," he said.
"Trump doesn't care what the global trade system will look like, as long as he is able to stave off bankruptcy and manipulate the market to make money for his friends," the financial expert added.
Trump's tariff measures wreak havoc on economy: expert
