China Aims to Boost Tourism Amid Trade War with New VAT Refund Policy

As the trade war between the United States and China continues, the latter is hoping to encourage more tourism by offering foreign visitors instant tax refunds.

Hong Kong-based newspaper the South China Morning Post reports that the People's Republic of China introduced an initiative last month to increase international tourism amid the high tariffs implemented on the country by the Trump administration.

Initially, the plan focused on increasing the number of duty-free shops and increasing the cash limit on tax refunds, but the country's ruling Communist Party has since confirmed it will also offer refunds upon purchase, rather than upon departure from the country.

Visitors will be able to immediately claim any value-added tax rebates at tax-free stores in the country, which is rolling out nationwide after being piloted in major cities such as Beijing and Shanghai. Additionally, tourists from the U.S. can enter the country without a visa for as long as 240 hours.

As reported by the BBC, officials from both countries are set to meet this week in an effort to de-escalate the trade war, which has greatly worsened ever since Trump introduced high import taxes on Chinese goods.

Some imports from China have reached as high as 145 percent, which the country responded to by implementing tariffs up to 125 percent on U.S. imports.

The meeting takes place in Switzerland this week, with Chinese Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent, and U.S. Trade Representative Jamieson Greer set to attend.