China steps up plans for ‘duty-free economy’ with 5 city metropolises leading domestic consumption charge
- China is exploring more ways to support its so-called dual circulation strategy, which aims to boost the economy with more domestic consumption
- Beijing, Shanghai, Guangzhou, Tianjin and Chongqing will play a leading role as international consumer centre cities
Duty-free shopping will play a more prominent role in plans to boost China’s economy with more domestic consumption, but various ongoing regulatory crackdowns could turn off international brands and restrict the development of proposed consumer cities, according to an analyst.
As part of its 14th five year plan and 2035 vision, China will spend five to 10 years developing a number of international consumer centre cities, with Beijing, Shanghai, Guangzhou, Tianjin and Chongqing playing a leading role.
Both Beijing and Shanghai said last month they had already laid out plans to attract more international brands, increase the number of duty free shops, allow more categories of duty-free goods and increase duty-free shopping quota per consumer. Last week, vice-commerce minister Wang Bingnan confirmed all five cities had already all stepped up their plans.
The expansion of duty-free shopping can lift spending as it appeals to both local shoppers who enjoy shopping as one of the perks of international travel and also attract future shoppers from overseas.
The saving on taxes can be significant, and for the savvy shopper, it can be a deal-breaker to pay more for the same type of goods