by XIN Yuan

Retail consumption in Shanghai gathered pace through 2025, ending the year with growth above the national average as policy incentives and a rebound in inbound tourism lifted spending, official data showed on Wednesday.

Total retail sales of consumer goods, China's official gauge of consumer spending, rose 4.6% in Shanghai last year, compared with 3.7% nationwide. Sales of new energy vehicles, communications equipment and home appliances and furniture all recorded double-digit growth.

The recovery strengthened quarter by quarter. Retail sales fell 1.1% year on year in the first quarter, turned positive to 1.7% in the first half, rose to 4.3% over the first nine months and closed the year at 4.6%, according to the data.

Policy support played a key role. Government-backed trade-in subsidies and replacement programs generated more than 120 billion yuan in sales in 2025, benefiting over 21.95 million consumer transactions. To support service-sector spending, the city issued 1 billion yuan in consumption vouchers, boosting demand in catering, tourism, film, culture and sports. Revenue in accommodation and catering rose 3.5% and 1%, respectively.

Inbound tourism rebounded sharply. Shanghai received a record 9.36 million inbound visitors in 2025, up 40% from a year earlier, while outbound tax-refund sales jumped about 80%.

Officials attributed the gains partly to easier entry policies. China expanded visa-free access last year, with unilateral visa-free entry now covering 48 countries and transit visa-free access 55. Shanghai's tax authorities said the city has built a refund network combining citywide points, centralized hubs and in-store outlets, allowing overseas visitors to receive tax refunds at the point of sale across the municipality.

Looking ahead, Shanghai has rolled out further measures to bolster consumption. In mid-January, it released a package of 28 policies to promote coordinated growth between service-sector upgrading and consumption expansion. A separate three-year plan for 2026–2028 targets leasing and business services, aiming to lift both scale and efficiency.

The city's draft 15th Five-Year Plan, a medium-term policy blueprint, also prioritizes service consumption. It calls for growth in culture, tourism, sports and health-related services, alongside the use of artificial intelligence in retail and consumer services, deeper online-offline integration, greener and smarter consumption, debut product launches and the expansion of the night-time economy.