Illustration: Liu Xidan/GT

The State Taxation Administration (STA) reported on Monday a 186 percent year-on-year increase in the number of tourists claiming tax refunds in China during the first half of this year. This trend underscores the growing global attraction of Chinese products and services. At a time when trade protectionism is being reignited by certain countries, what insights can we draw from this surge?

The surge in the number of tourists claiming tax refunds in China can be attributed to several factors. These include, but are not limited to, first, the expansion of China's list of visa-free countries, which has led to an increase in inbound tourism. In the first half of the year, 13.64 million foreign visitors entered China without a visa, a 53.9 percent year-on-year increase. Second, China has continuously improved its tax refund policies and infrastructure. At a press briefing held by the State Council Information Office on Monday, Wang Daoshu, deputy commissioner of the STA, stated that the number of domestic stores offering tax refunds had more than doubled from January to June to more than 7,200.

The rise of "shopping in China" is no coincidence. More importantly than the two points previously mentioned, it stems from the ongoing transformation and upgrading of China's manufacturing and services sectors. 

As the country moves toward high-quality development, its industries are becoming increasingly resilient, innovation-driven, and globally competitive. Today, "Made in China" products feature significantly higher technological content, which has enhanced their appeal in international markets.

According to a June article on the World Economic Forum's website, China's manufacturing is entering a new phase - "Made in China 2.0" - characterized by an artificial intelligence-augmented, green-powered, and self-reliant transformation of the world's largest industrial base.

China's steadily advancing strategy of high-end manufacturing and innovation-driven growth is enhancing the country's ability to adapt to global markets while bolstering its resilience against external shocks.

This industrial evolution is attracting a growing number of foreign visitors interested in shopping for quality goods in China. Their suitcases, packed with Chinese products, represent not only a vote of confidence in Chinese manufacturing, but also international recognition of China's development progress. According to reports, tourists are purchasing a wide range of items - such as Huawei smartphones, Jingdezhen porcelain and Yunnan coffee.

In 2024, the number of inbound visitors to China was approximately 132 million, with total spending of $94.2 billion, representing increases of 60.8 percent and 77.8 percent compared with 2023. Some experts predicted that inbound consumption might further increase this year.

These developments are unfolding against a backdrop where, driven by certain nations, globalization is facing headwinds from trade protectionism, which has adversely affected cross-border trade. In this context, some foreign tourists come to China with empty suitcases and shop, reflecting the allure and competitiveness of Chinese products. This not only underscores the appeal of China's manufacturing and services but also its resilience in maintaining a competitive edge in the global trade arena, despite protectionist trends.

Overseas visitors to China are expanding their shopping experiences, engaging in a wide array of purchases from high-tech items like drones to enjoying distinctive Chinese culinary and wellness experiences. This growing trend is supported by China's vibrant industrial and services sectors, which offer a broad spectrum of products and services. As inbound tourism continues to rise, there is significant potential for further growth in visitor spending. The key to sustaining this growth lies in diversifying the offerings to cater to the varied preferences of international tourists. This, in turn, sets higher standards for the industry's development, ensuring that it remains adaptable and responsive to the evolving preferences of global consumers.

Amid the uncertainties in international trade and economic development brought about by trade protectionism driven by certain countries, the potential of China's inbound consumption market demonstrates the certainty and competitiveness that come from the solid development and progress of its industrial and services sectors. These attributes are not overshadowed by the headwinds of trade protectionism. The connection between China and the international market is continuously strengthening.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn