Nationwide instant tax refund policy makes shopping easier for int'l consumers in China

Shopping has become more friendly and easier for international travelers across China as the country expanded the application of its instant tax refund policy nationwide from April 8 to boost consumption.

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.

Thanks to the policy, Mark, a Turkish businessman, has enjoyed an immediate tax refund upon his purchase of souvenirs in Yiwu City of east China's Zhejiang Province.

"With the tax refund, I can save some money and buy more things," said Mark.

"We merchants also like the policy. It can bring more consumers to my store," said Zou Wei, a store manager.

So far, there have been 163 stores applicable to the instant tax refund policy in Zhejiang, with a number of instant tax refund service stations set up in major scenic spots and resorts.

In Changsha City of central China's Hunan Province, a tax refund service center has been set up on the second floor of the Changsha International Finance Square building. International travelers can go to the center for tax refund after they buy goods from authorized stores.

"The tax refund process has been moved ahead of the customs verification. Before the tourists finish their travel, they can get the tax refund in cash, facilitating their further consumption," said Wen Tengzhong, an officer at the import and export tax department of the Changsha Taxation Bureau.

The tax refund policy has also sparked enthusiasm for consumption among international travelers in Chengdu City of southwest China's Sichuan Province.

"Actually, I just heard from the tour leader that I need to do the tax refund for (at) the IFS (International Finance Square) building," said a Thai tourist.

"Many foreign friends often visit our store. The tax rebate policy spurs their enthusiasm for consumption. It's very convenient that they can directly go to the fifth floor in the mall for tax rebate," said Zhang Xinyu, a store manager.

So far, there have been 49 stores that provide the instant tax refund service in Chengdu.

Nationwide instant tax refund policy makes shopping easier for int'l consumers in China

A Japanese economist warned that the recent tariff hikes imposed under Donald Trump's administration will disrupt the global economy and ultimately backfire on the U.S.

In an interview with China Media Group (CMG), Sakai Shozaburo, former Chancellor and President of Chuo University, explained that the U.S. developed a finance-driven tertiary industry as part of its economic strategy to establish a dollar-based global financial system. As a result, the country's manufacturing sector gradually declined, a shift that he emphasized was driven by domestic policy decisions, not external influences.

"The U.S. tariffs will lead to a sharp rise in prices, and the economic situation in the United States will deteriorate. Moreover, with fixed purchasing power, any increase in costs will inevitably lead to a decrease in consumption. Simply put, goods will not sell. As a result, prices will rise, but goods will remain unsold, leading to stagflation, a phenomenon in economics," said Sakai. Sakai also warned that U.S. tariffs pose a significant threat to the country's GDP growth.

"[U.S. tariffs] will certainly be opposed by all countries around the world, and they will eventually backfire on the U.S. From an overall economic perspective, prices will rise, which can be described as self-destructive behavior. It also poses a very serious challenge to the growth of U.S. GDP," he said.

Japanese economist warns Trump's tariff hikes will backfire on U.S. economy