China is intensifying efforts to transform five key cities—Shanghai, Beijing, Guangzhou, Tianjin, and Chongqing—into global consumption centers comparable to New York and London.

This initiative is part of a strategic plan developed by the Ministry of Commerce, aimed at bolstering domestic demand and facilitating high-standard global economic integration.

The plan highlights the promotion of a 'debut economy,' where both domestic and international brands will be supported in launching new products and exhibitions.

The Ministry will also facilitate customs clearance for newly imported goods, thus enhancing the retail environment in these urban centers.

Key to this initiative is the organization of high-profile events, including fashion weeks and automobile expos, in the targeted cities.

The Ministry aims to attract top global brands to open their initial stores and establish regional headquarters and research and development centers.

Shanghai has been particularly successful in hosting brand debuts and pop-up stores, serving as a model for other cities in implementing the strategy.

In the Government Work Report, boosting consumer spending was underscored as a primary objective for the year.

To further establish these five cities as global consumption hubs, the government plans to gradually expand its unilateral visa-free entry policy.

Enhanced tax refund protocols for overseas visitors are also on the agenda, including the introduction of more tax refund stores and streamlined processes.

Since the introduction of unilateral visa-free policies for several nations in late 2023, an increase in inbound travelers has been noted.

The National Immigration Administration reported that the number of foreign visitors to these five cities has doubled when compared to figures from 2023. In the previous year, these cities accounted for 60 percent of the country’s tax refund stores, and over 70 percent of total sales value nationally were generated here, according to Li Gang from the Ministry of Commerce.

Foreign tourists are showing an interest not only in modern products but also in traditional domestic brands.

For instance, Tong Ren Tang, a historic Chinese medicine retailer, has attracted more foreign customers who utilize tax refund services for traditional Chinese medicines and health products.

Despite these advancements, the Chinese retail market still faces challenges compared to developed countries.

The government will facilitate the creation of specialized commercial complexes and promote the sale of domestic trendy products in tax refund locations.

In tandem with these initiatives, China is set to host numerous large-scale promotional activities, including high-level international sporting events.

Events like the 2025 Formula 1 Chinese Grand Prix, which recently took place in Shanghai, exemplify this commitment to enhancing global consumer engagement.

Future plans include the organization of more motor racing events and the introduction of new consumption scenarios such as recreational vehicle camping, as well as further development of the automobile aftermarket.

China is also focusing on the cruise tourism sector and low-altitude travel, while promoting innovative technologies like artificial intelligence and virtual reality in the consumption landscape.

This initiative will support the expansion of smart home appliances and new energy vehicles, among other products.

In terms of retail performance, China recorded total retail sales of consumer goods reaching 8.37 trillion yuan ($1.15 trillion) in the first two months of the year, reflecting a year-on-year increase of 4 percent, which is 0.5 percentage points higher than the rate recorded for the entire previous year.