The General Office of the State Council forwards the Ministry of Commerce. Several Measures for Supporting the Cultivation and Development of International Consumption Center Cities (hereinafter referred to as the “Several Measures”) on Announced to the public on March 26, the “Several Measures” focus on the pilot program for cultivating and developing five initial international consumer center cities—Shanghai, Beijing, Guangzhou, Tianjin, and Chongqing—and propose a series of innovative and highly operational policy measures across eight key dimensions.

Policy Background and Strategic Significance

International consumption center cities are one of the core functions of modern, globally integrated metropolises. They serve as hubs for the concentration of consumption resources and also act as crucial platforms for a country’s participation in global competition and its opening-up to the outside world. The Party Central Committee and the State Council attach great importance to the development and construction of international consumption center cities, regarding them as key initiatives for establishing a new development paradigm and promoting high-quality development. In July 2021, with the approval of the State Council, Shanghai, Beijing, Guangzhou, Tianjin, and Chongqing were selected as the first batch of cities to embark on the cultivation and development of international consumption center cities. After nearly four years of exploration and practice, these cities have achieved initial results. The “Several Measures” recently released by the Ministry of Commerce aim to further strengthen policy support, accelerate the enhancement of the internationalization level of the five pilot cities, and bolster their role in leading and driving consumption.

From the perspective of economic geography, the cultivation of international consumer hub cities is essentially a... The “spatial production” revolution. As the French thinker Henri Lefebvre once pointed out, space is a social product, and modern consumer society is giving rise to a new type of urban spatial form. The emergence of world-class consumption landmarks such as New York’s Fifth Avenue, Paris’s Champs-Élysées, and Tokyo’s Ginza is by no means merely the natural outcome of commercial development; rather, it is the result of the ongoing mutual construction among capital, power, and culture within specific spaces. China’s choice of five major cities—including Shanghai—as key development targets stems precisely from their already established spatial agglomeration effects: Shanghai boasts the world’s third-largest luxury goods market; Beijing’s Wangfujing district sees an annual footfall exceeding 80 million visitors; Guangzhou, as a “millennial commercial metropolis,” records annual wholesale and retail sales totaling over 10 trillion yuan; Tianjin possesses a unique port-based commercial culture; and Chongqing has pioneered a new paradigm of consumption through its booming internet-famous economy. The strategic significance of this spatial restructuring lies in harnessing the polarization effect to create hubs of consumption innovation, thereby radiating and driving consumption upgrades across wider regions.

 

01. Actively promote the first-launch economy

 

The “Several Measures” particularly emphasizes: "Actively promote the first-launch economy"—this policy orientation directly addresses the "time-zone disadvantage" that has long plagued China’s consumer market. So-called "First-launch economy" refers to an economic model in which consumption is driven and industrial clusters are fostered by attracting international and domestic brands to launch new products, open their first stores, or hold their inaugural exhibitions for the first time. In the past, when international brands launched new products for the first time, they typically prioritized traditional consumer hubs such as New York, London, and Tokyo, leaving Chinese consumers to wait for months—or even longer. This time lag not only led to a leakage of consumption abroad but also reinforced, on a psychological level, a "Western-centric" consumer culture. According to research by Boston Consulting Group, 60% of Chinese consumers' luxury spending overseas occurs during the initial launch period of these products.

By fostering the “first-launch economy,” the five major cities may gradually gain greater influence and pricing power in the global consumer market. Shanghai has already begun to see initial results. In 2022, the city became one of the global leaders in the number of first launches by high-end brands, accounting for as much as 12%—a figure that stood at only 5% in 2018. As Chinese cities transform into trendsetters rather than followers in global consumer trends, the country as a whole will achieve a qualitative leap in its consumption capabilities.

 

02. Integrated Consumption Scenarios for Multi-Industry Convergence

The proposal to expand low-altitude consumption scenarios is particularly noteworthy, reflecting policymakers’ forward-looking grasp of new forms of consumption. The low-altitude economy encompasses drone delivery, aerial sightseeing, and more. Emerging business models such as eVTOL (electric vertical takeoff and landing vehicles) are becoming a new frontier in the global consumer technology competition. Morgan Stanley predicts that by 2040, the global low-altitude economy will reach a market size of 1.5 trillion U.S. dollars. China enjoys significant advantages in this field: DJI holds a 70% share of the global consumer drone market, and EHang Intelligent Technology of Guangzhou has already launched pilot programs for its autonomous aerial vehicles in several countries.

The “Several Measures” include low-altitude consumption within the scope of policy support, effectively laying the groundwork—in terms of both infrastructure and institutional frameworks—for future consumption patterns. It is foreseeable that as drones... Thirty-minute delivery has become commonplace, and as “taking a quick flight” for sightseeing has become standard practice in tourism, the spatial and temporal boundaries of consumption will be completely redefined—precisely reflecting the innovative spirit that should characterize a global consumption center city.

The “Several Measures” also explicitly state that, Vigorously develop the sports event economy, promote sports competitions into scenic areas, neighborhoods, and commercial districts, and foster... The “Travel Along with the Events” brand initiative supports cities that meet the necessary conditions to enhance the construction of supporting facilities for international cruise homeports, promote innovation in “cruise+” business models, and seamlessly connect consumption scenarios from onboard to ashore.

 

03. Breaking Through the Bottlenecks of “Payment Walls” and “Difficult Tax Refunds”

One of the essential characteristics of an international consumption hub city is its strong international appeal and global resource allocation capability. The ease of entry policies and the friendliness of the consumption environment directly determine international tourists’ consumption experience and willingness to spend. The policy explicitly states that... Orderly expand the scope of countries eligible for unilateral visa-free entry, enhance the effectiveness of the visa-free transit policy for foreign nationals, and promote coordinated regional implementation of transit visa-free policies in relevant cities. This measure directly addresses the long-standing issue raised by international tourists regarding China’s relatively stringent visa policies. Under the current policy, China has already implemented unilateral visa-free or transit visa-free arrangements for certain countries; however, there is still considerable room for expansion in terms of both the scope of countries covered and the duration of stay allowed. Following the implementation of the “Several Measures,” the five pilot cities are expected to take the lead in expanding the scope of countries eligible for visa-free entry and achieving regional coordination of the transit visa-free policy—meaning that foreign nationals who enter a pilot city will be able to move freely among multiple pilot cities. This will significantly enhance China’s attractiveness as a multi-destination tourism and consumption market.

Moreover, issues such as inconvenient payment methods, complicated tax refunds, and language barriers have long undermined the international appeal of China’s consumer market. In 2023, China’s international tourism revenue reached only 60% of the 2019 level, whereas countries like France and Spain had already recovered to over 90% during the same period. Currently, Alipay and WeChat Pay have begun supporting the linking of foreign cards. In key commercial districts of major cities such as Shanghai and Beijing, the acceptance rate of overseas bank cards has exceeded 90%. Moreover, the “Buy Now, Refund Now” pilot program has reduced the refund processing time from the traditional 3–7 days to just a matter of minutes. These improvements may seem minor at first glance, but they actually represent a fundamental enhancement of the international consumer experience. Only when a foreign tourist can shop as conveniently in Shanghai’s IFC Mall as they can at Galeries Lafayette in Paris can China’s consumer market truly achieve full-scale internationalization.

 

04. Digital empowerment builds a new ecosystem of virtual-real integration.

 

The “Several Measures” also mention that, Launch pilot programs for reforming automobile circulation and consumption, develop new consumption scenarios tailored to local conditions—such as auto racing and RV camping—and expand consumption in the automotive aftermarket. Promote the deeper integration of technologies like artificial intelligence, virtual reality, and big data into the consumer sector, and create a number of exemplary models. “AI + Consumption” scenarios. Continue to promote the trade-in program for consumer goods, and accelerate the rollout of smart home products, smart appliances, and intelligent connected new-energy vehicles.

From a broader perspective, building international consumption centers is a strategic necessity for China’s economic transformation. Currently, consumption’s contribution to China’s economic growth has exceeded... Eighty percent—yet there remains substantial room for improvement in both consumption quality and efficiency. By piloting these initiatives in five major cities, we can develop replicable achievements in institutional innovation. For example, Chongqing’s “Business District Plus” model deeply integrates commerce with cultural tourism, conventions and exhibitions, sports, and other sectors, creating multifaceted consumption scenarios. Guangzhou’s initiative to become a “Livestreaming E-commerce Hub” has nurtured emerging brands such as Perfect Diary, providing a model for the transformation and upgrading of traditional manufacturing bases. Through the policy spillover effect, these experiences will encourage more cities to elevate their consumption levels.

 

05. Promote high-quality development of commercial and trade circulation.

The “Several Measures” clearly state that we must... Promote high-quality development of commercial and trade circulation. Support pilot programs for building modern commercial and trade circulation systems, and foster modern commercial and trade circulation hub cities that boast strong radiating and driving capabilities as well as robust supply resilience. ”

As an important component of the modern circulation system, commercial and trade circulation plays a vital role in ensuring the smooth flow of the national economy, boosting consumption and expanding domestic demand, building a unified national market, enhancing the global competitiveness of industrial and supply chains, and reducing overall social logistics costs. From the perspective of urban functions, fostering and developing international consumer center cities represents a key pathway for elevating urban capabilities and core competitiveness. An international consumer center city not only needs to have a well-developed consumer market but also must possess strong resource-allocation capabilities, innovation-leading functions, and comprehensive service offerings. The “Several Measures” support pilot cities in building first-launch economic ecosystems, constructing modern commercial and trade circulation systems, and cultivating iconic commercial districts featuring the integration of diverse business formats. These measures will significantly promote the optimization and upgrading of urban commercial systems and enhance cities’ ability to exert radiating and driving effects.

In addition, the “Several Measures” also mentions: “Based on the city’s functional positioning, we will implement a high-quality development initiative for the wholesale sector, accelerate innovation in wholesale enterprises’ business models, and promote the intelligent transformation of wholesale markets. We will also speed up the development and construction of landmark commercial districts that integrate diverse business formats and attract high-quality resources, creating a number of distinctive neighborhood areas.”

 

06. Successfully organize various large-scale consumer promotion events.

 

Regarding the organization of large-scale consumer promotion events, the “Several Measures” clearly state that: Create iconic brands for consumption-boosting events. Support the organization of more high-level international sports events and performing arts shows. By attracting domestic and international flows of people, capital, and culture, we can unleash consumption potential, drive the development of related industries such as tourism and catering, and boost the city’s economic vitality. At the same time, leveraging international event platforms will promote cultural exchange and mutual learning, enrich the city’s cultural depth, and enhance its cultural soft power. Moreover, the global influence of sports events and performances will elevate the city’s international profile, spur infrastructure upgrades, strengthen its overall competitiveness, and inject multi-dimensional momentum into the cultivation and construction of an international consumption-centered city.

 

07. Leverage the role of duty-free shops and the departure tax refund policy.

Duty-free shopping and departure tax refund policies are standard features of international consumption hub cities and serve as a key lever for attracting spending by overseas travelers. Looking at major international consumption hubs around the world—such as Dubai, Singapore, and Seoul—we can see that these cities have significantly boosted overseas travelers’ spending through well-developed duty-free and tax refund policies.

Li Gang, Director of the Department of Consumption Promotion at the Ministry of Commerce, recently stated at a special press conference held by the Ministry of Commerce that high-quality global consumption resources are accelerating their concentration in relevant cities. In 2024, the number of foreign visitors entering these cities increased by roughly one time compared to the previous year, accounting for about 30% of the national total. The number of duty-free shops for departing travelers accounted for approximately 60% of the national total, and their sales volume represented over 70% of the national total.

The “Several Measures” propose: Better leverage the roles of duty-free shops and the departure tax refund policy. The goal is to fully unlock the enormous potential of China’s duty-free and tax-refund markets through institutional innovation and policy optimization. These measures not only directly boost spending by overseas travelers but also promote the internationalization of domestic brands, yielding multiple positive effects on fostering and building internationally renowned consumption centers.

 

08. Strengthen external publicity and promotion

 

The “Several Measures” explicitly state that they aim to... Support relevant cities in fostering and developing high-level international exchange platforms. This represents an important lever for building international discourse power in the consumer sector. In the age of globalization and digitalization, competition among global consumer hub cities is no longer confined solely to comparisons of physical infrastructure and goods and services; rather, it has expanded to include a contest over urban image, cultural soft power, and global influence. By establishing a diversified and multi-dimensional international communication system, we can effectively tell China’s consumer story to the world, shape urban consumer images that exude global appeal, and create a favorable public opinion environment and collaborative ecosystem for fostering and developing global consumer hub cities.

 

The rise of China’s consumer market is reshaping the global consumption landscape, and the cultivation of internationally recognized consumption hub cities will become a significant milestone in this historic transformation. When our cities not only attract attention with the towering heights of their skyscrapers but also profoundly influence the world through the depth of their consumption innovations, China’s economy will gain even stronger support for high-quality development. Against the backdrop of a sluggish global economic recovery and the urgent need for new momentum in the domestic consumer market, the introduction of this policy comes at just the right time. It not only provides policy guidance for the five pilot cities but also sets a benchmark for the development of consumption hub cities nationwide. Its impact will extend far beyond geographical boundaries, redefining China’s position and role in the global consumer market.