by Fang Zhuoran

From April 30 to May 4, total spending in the Shanghai hit 59.46 billion yuan (US$8.2 billion), up 13.1% from a year earlier, according to the Big Data Laboratory of Consumer Market (Shanghai). Offline spending accounted for 33.15 billion yuan (US$4.6 billion), while online spending reached 26.31 billion yuan (US$3.6 billion). Foot traffic in 35 major shopping areas climbed 12.8% to nearly 30 million visits.

Spending by overseas visitors jumped 211.6% year-on-year to 455 million yuan (US$62.6 million). Tax-refunded sales more than doubled, while refund payouts rose 130%.

The growth followed an April 27 government notice introducing eight new measures to expand and simplify the tax refund system—such as increasing the number of participating stores, lowering the refund threshold from 500 to 200 yuan (US$28), and raising the cash refund cap.

Just a day later, a foreign visitor became the first to complete a self-service tax refund at Daimaru Department Store, using a new bilingual kiosk that scans passports and invoices to generate claims in minutes. Shanghai has since installed more kiosks at busy stores to ease peak-time congestion.

Landmarks like the Bund, Nanjing Road, and Lujiazui remain top draws for foreign shoppers. Jing’an leads the city in tax-refund sales. Plaza 66 alone accounts for eight of Shanghai’s top 20 tax-free retailers. In 2024, Jing’an’s refund-eligible sales neared 700 million yuan (US$96.2 million).

Local fashion brands are also seeing gains. At SHUSHU/TONG’s Shanghai flagship, foreign foot traffic has surged since China relaxed visa rules in December. Store manager Cong Yuxiao said about half of daily visitors are now tourists—mostly from South Korea and Japan—and nearly 85% ask about tax refunds.

Shanghai now has over 1,000 certified tax-refund stores, covering more than 3,300 brand outlets. Recent rule changes have made it easier for new and smaller businesses to qualify, including startups with solid tax credit ratings.

Shanghai Hengwei Commercial Group, for instance, registered as a refund-eligible store within 24 hours of the policy update. The retailer specializes in local favorites like White Rabbit candies and sees rising interest from tourists.

Larger retailers are streamlining filings as well. In April, Sanlian Group registered 11 eyewear stores under a new centralized filing process, bringing its total to 27 tax-refund outlets.

From January to April, Shanghai’s tax-refund sales rose 81% year-on-year, with total refunds up 77%. Instant, on-the-spot refunds jumped 40-fold in value and 39-fold in volume.

“What matters most to inbound shoppers is more options and faster service,” said Ge Yuyu, head of applied economics at the Shanghai National Accounting Institute. “The latest policies are delivering both.”

The initiative is part of Shanghai’s broader goal to become a global shopping destination—by making it easier and more rewarding for foreign visitors to spend.