China Pivots from Growth Targets

The pivot to "high-quality development" is a strategic response to an economy overly reliant on real estate and infrastructure investment, a model that has led to significant debt. This new focus, championed by President Xi Jinping, prioritizes innovation in sectors like artificial intelligence, biotechnology, and green energy to foster more sustainable, long-term growth. Domestically, the economic picture is weighed down by a prolonged crisis in the property sector, which has historically been a primary store of wealth for Chinese households. This has dampened consumer confidence, leading to increased savings and sluggish retail sales, with growth in December 2025 slowing to its lowest pace since 2022. In a stark contrast, inbound tourism has recovered to over 90% of pre-pandemic levels, with 131.9 million inbound tourists visiting in 2024. This surge is largely attributed to a strategic expansion of visa-free travel policies, which now allow citizens from around 50 countries, including the UK and Canada, to enter for up to 30 days without a visa. The influx of visitors is fueling a "Shopping in China" phenomenon, with tourists increasingly motivated by purchasing goods. In 2025, the number of overseas visitors claiming tax refunds on purchases surged by 305% year-on-year. International shoppers are moving beyond traditional souvenirs, creating "must-buy" lists that heavily feature Chinese high-tech products. Drones, foldable smartphones, Bluetooth earphones, and other electronics are in high demand, with destinations like Shenzhen's Huaqiangbei electronics market becoming popular tourist spots. This tourism boom is providing a welcome, albeit external, boost to the economy. In 2024, international visitor spending in China reached a record ¥1 trillion, a 66% year-on-year increase. To further capitalize on this, China has expanded its network of departure tax refund stores to over 12,000 nationwide.