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China's Hainan Free Trade Port is drawing global investors as surging duty-free sales fuel economic growth, cementing its role as a hub for international brands, capital and tourism, said market watchers and foreign business leaders.
Their remarks came as sales under Hainan FTP's offshore duty-free scheme rose 25.7 percent year-on-year to 14.21 billion yuan ($2.06 billion) in the first quarter of 2026, following the full implementation of island-wide special customs operations in mid-December, statistics from Haikou Customs showed.
In the meantime, skincare products, electronics, alcoholic beverages and apparel were among the best-selling duty-free categories.
Analysts said that the strong first-quarter growth in duty-free sales has laid a solid foundation for consumption growth in Hainan FTP this year.
"The growing duty-free figures have brought encouraging changes to the FTP and boosted confidence in its efforts to build itself into an international tourism and consumption center," said Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation.
While part of the growth was supported by the Spring Festival holiday and seasonal factors, Zhou said the overall trend in the FTP will remain positive in 2026.
The trend is also reflected in broader consumption data in China, with retail sales of consumer goods totaling 8.61 trillion yuan in the first two months, up 2.8 percent on a yearly basis, according to the National Bureau of Statistics.
Jack Perry, chairman of The 48 Group Club, a London-based nonprofit organization dedicated to promoting Sino-British business cooperation, said that Hainan FTP's combination of policy support, consumption upgrading and supply chain integration is creating new opportunities for global brands, while reinforcing China's role as a key engine of global demand and growth.
Holger Bingmann, an executive board member of the Paris-headquartered International Chamber of Commerce, shared a similar view, saying that favorable policies have brought clear benefits to businesses since the launch of island-wide special customs operations in Hainan FTP. "For multinational companies, partnering with China's strong capacity for innovation offers meaningful upside in this area," said Bingmann, stressing that in an era marked by uncertainty, openness is a source of strategic strength.
This momentum has also lifted inbound tourism. Hainan recorded nearly half a million inbound tourist visits between January and March, a year-on-year increase of over 53.1 percent, according to Hainan's provincial department of tourism, culture, radio, television and sports.
Notably, while traditional source markets such as Southeast Asia and Russia continued to grow steadily, arrivals from Europe surged. Visitor numbers from the United Kingdom rose by over 81 percent, Italy by 101.3 percent, Switzerland by nearly 99 percent, and Spain by more than 84 percent, year-on-year, respectively.
Already operating a travel retail headquarters in the Hainan FTP, Tapestry Inc, a United States-based fashion group, is well placed to tap into expanding demand in the port's duty-free and travel retail markets.
"We see Hainan as a strategic gateway to connect with global visitors, China's younger consumers and the expanding middle-income group, leveraging duty-free policies and integrated retail channels to deliver locally tailored products, enhance customer experience and deepen our presence in Hainan's evolving consumption landscape," said Joanne Crevoiserat, Tapestry's CEO. Also upbeat about the growth potential of Hainan FTP, Stephane Maquaire, president and CEO of Club Med, a Paris-based travel and lifestyle brand, said the company will further expand its customer base and product innovation in China, integrating more local cultural elements. "We will further strengthen our position in sun-and-beach offerings with new projects in Sanya, Hainan province," he said, adding that supportive policies at the free trade port and rising tourism demand have strengthened the group's confidence in expanding its presence and innovating its resort offerings in China.
Contact the writers at zhongnan@chinadaily.com.cn
BEIJING -- China's government-backed consumer goods trade-in programs benefited over 60.93 million purchases in the first quarter of 2026, boosting sales of 433.17 billion yuan (about $62.84 billion), commerce ministry data showed Friday.
A total of 1.41 million subsidy applications were received for auto trade-ins, driving new vehicle sales of 228.69 billion yuan in Q1.
Under the program, about 23.21 million home appliances, including refrigerators, washing machines, televisions, air conditioners, computers and water heaters, were traded in during the period, boosting sales by 95.43 billion yuan.
A total of 36.32 million units of digital and smart products were sold under the program, driving sales of 109.05 billion yuan.
Chinese authorities have announced the renewal of the trade-in subsidy program for consumer goods in 2026 as part of the broader efforts to boost consumption, with 62.5 billion yuan in ultra-long special treasury bond funds allocated in advance to support this year's program.
Buoyed by the greater openness of the Hainan Free Trade Port, the China International Consumer Products Expo has established itself as a fast track for global goods to enter the vast Chinese market while turning an increasing number of exhibitors into long-term investors, officials and executives said on Monday.
Speaking at a news conference in Beijing, Vice-Minister of Commerce Sheng Qiuping said that the sixth edition of the expo, which opens in Haikou, the capital of Hainan province, on April 13 and runs through April 18, will be the first major event held in Hainan since the FTP fully implemented its island-wide independent customs operations in December.
"We will leverage the FTP's policy advantages to make the expo a premier testing ground for cultivating new consumption growth drivers and promoting consumption upgrades," he said.
According to local authorities, customs operations have seen a surge in zero-tariff goods in recent times, expanding coverage to 74 percent and allowing items with 30 percent added value in Hainan to enter the mainland tariff-free.
Sheng said that the expo will bring together more than 3,400 brands from over 60 countries and regions, with international exhibits accounting for 65 percent of the total. More than 200 new products are expected to make their debut, double the number launched at last year's event.
Saravoot Yoovidhya, CEO of Thailand's TCP Group, a leading manufacturer of energy drinks and a regular attendee at the expo, said,"Although global demand is slowing, the certainty of China's market is the most important ballast in our global strategy."
Data from the Ministry of Commerce shows that China's retail sales in consumer goods — a key indicator of consumption — rose 2.8 percent in the first two months of 2026, accelerating by 1.9 percentage points from December.
Saravoot said that at the beginning of the 15th Five-Year Plan (2026-30) period, China's continued expansion of institutional openness and construction of a unified national market have injected strong confidence into foreign investors looking to deepen their presence and contribute to consumption upgrades.
Bateer, executive vice-governor of Hainan, said a series of "Shopping in China" promotional events will be hosted during the expo, highlighting quality export products, innovative tech items, cultural intellectual property and flagship products from time-honored enterprises. "The goal is to help premium Chinese consumer goods reach the world," he added.
Over the years, the expo has evolved from a showcase for global consumer goods into a panoramic window on the institutional opening-up of the Hainan FTP. According to the ministry, more than 70 top-tier companies have established operations in Hainan following their participation in the expo.
Bateer said that with the customs integration now fully implemented, companies can expect continued improvements in customs clearance efficiency, while exhibitors transporting their products to the expo can benefit from lower costs and more professional services.
"The zero-tariff list, which now includes more than 6,600 items, offers exhibitors new opportunities to establish production bases in Hainan, especially supply chain hubs. From Hainan, they can serve the vast mainland market and also reach Southeast Asia," he said.
"We will further ease access to foreign investment, promote the introduction of a second set of special market access measures and optimize the streamlined approval system," Bateer added.
Holger Bingmann, vice-chairman of the executive board of the International Chamber of Commerce, an organization representing companies and associations in over 170 countries, said that Hainan is entering "a new stage" of development with its combination of efficient logistics, favorable trade conditions and a welcoming business environment.
wangkeju@chinadaily.com.cn
Formula One fan Carmen Pacios flew all the way from Spain to Shanghai to watch the 2026 Chinese Grand Prix earlier this month.
Apart from experiencing the thrilling speed and exciting atmosphere at the Shanghai International Circuit, she and her family members found time to tour the city's downtown area. At an Adidas store, she immediately spotted something she wanted to buy.
"There's so much cool Chinese stuff," Pacios said.
"I saw a lot of people wearing the Adidas Chinese-style red jackets. I think they only sell them in China and I really wanted to get one."
The popular jacket was launched by the German sportswear company in 2022 exclusively for the Chinese market. With distinctive knot buttons and an upright collar it went viral online, with many influencers and celebrities wearing it in public, including some of the visiting F1 drivers such as Mercedes' George Russell.
Guo Aijie, a senior sales manager at Adidas' brand center on Shanghai's East Nanjing Road, said the Chinese-style jacket was popular with consumers of all ages, backgrounds and nationalities.
On Jan 1, several hundred people lined up in front of the store to buy the latest version.
"Our store opens at 10 am, but on New Year's Day, I was truly shocked by the number of people, most of them foreigners, waiting outside for the doors to open," said Guo. "About 1,000 units of the product were sold that day, setting a single-day sales record for the special series at the store."
The jacket represents a growing trend of foreign brands shifting from "Made in China" to "Made for China". Multinational companies have been rolling out products and designs tailored specifically for the Chinese market. This move has not only helped secure their success in China, but also provided momentum for their global growth.
The Adidas' Creation Center Shanghai (CCS) is responsible for more than 60 percent of the company's products in the Chinese market, and its first version of the jacket was released in 2022.
In a written reply to China Daily, Adidas said the center's long-term focus is on Chinese culture and the rise of guochao or China-chic trends.
Their designers turned their attention to the traditional Chinese knot button, a distinctive cultural element, to give subsequent designs of the jacket — which has become one of the brand's outstanding products — a local twist.
The company said a growing number of consumers, especially younger people, are seeking brands and products that reflect their cultural identity and have emotional connections.
"Moreover, products designed by CCS allow global consumers to appreciate the charm of Chinese culture and the beauty of the East, something the team is very proud of," said Adidas' written reply.
Lan Tian, a senior analyst at Euromonitor International, a London-based market research company, said China's consumer market has undergone structural changes in recent years, and the increased efforts to provide customized products are an inevitable choice for multinationals.
"In the past, the core appeal of the Chinese market lay in its scale and growth rate, which makes it possible to achieve rapid growth through simply launching standard products. However, as the market matures, growth now depends on segmented customer groups, differentiated scenarios, and shifts in lifestyle," explained Lan.
"China's advantages in retail infrastructure, digital capabilities, and supply chains' quick response capabilities have made it both feasible and cost-controllable for multinational companies to conduct highly localized operations," Lan said.
The Chinese market is undergoing a transition from a receiver of global products into an important market that is deeply integrated in terms of product design, sales models, and corporate values. This shift has raised overall expectations for efficiency, consumer experience, and organizational capabilities in China's consumer market.
Chewing over success
Canadian coffee chain Tim Hortons is another success story when it comes to catering to the taste of Chinese consumers.
"Bagels are one of our signature products. Inspired by the traditional chewiness of bagels, the ones sold in China are also adapted to meet local consumers' preference for a softer texture," said Lu Yongchen, CEO of Tims China, the operator of Tim Hortons in China.
Since 2022, sales of the bagels have snowballed to exceed a cumulative total of 80 million units.
Products cover consumer demands for breakfast, lunch and afternoon tea, with offerings including multigrain bagels and bagel sandwiches. In terms of flavor, the company has also localized its products with bagels featuring ma lan tou (Kalimeris indica) and scallion ingredients, said Lu.
Since opening its first store in Shanghai in February 2019, Tims China has pursued rapid expansion and successfully went public on the Nasdaq in September 2022.
"As of Sept 30, 2025, we operate 1,030 stores across 91 cities in China. We've gradually established a brand image for coffee and heated food among consumers, with bagel products proving particularly popular,"Lu said.
From the outset, the company localized store design and menu offerings, and today 90 percent of its products are tailored for local consumers, said Lu.
"We even localized the name of Tim Hortons to Tims as Chinese consumers prefer shorter and easier pronunciations. And to better fit the Chinese market, we officially launched the Chinese name as tianhao in 2023, which literally means 'good everyday' in Chinese," Lu said.
Lan, the analyst, said: "Effective localization is not just about adding Chinese elements, but about giving the Chinese market a standalone and mature operational logic."
Ikea's inspiration
Pontus Erntell, CEO, president and chief sustainability officer of Ikea China, said over the past 28 years the company has always closely followed the evolving needs of Chinese consumers.
The Swedish home furnishings and furniture retailer tries to offer products, home solutions, and retail experiences tailored to diverse lifestyles in China, which can also be offered as a "treat" for global consumers.
"A long-term product series co-created with China, the Chinese New Year collection, was launched globally by Ikea, reflecting our confidence in China, for China, and in co-creating with China," Erntell said.
"Ikea has achieved the global debut of its Chinese New Year collections at the China International Import Expo for five consecutive years," said Erntell.
The Year of the Snake collection recorded sales of over 400,000 units from its CIIE debut through the post-Spring Festival period, and was subsequently launched in overseas markets.
Erntell said younger consumers in China are increasingly seeking ways to reinterpret traditional festivals in ways that reflect their personal lifestyles and contemporary living spaces.
At last year's CIIE, Ikea showcased around 25 new products from its Year of the Horse collection. "The collection has been launched across multiple Ikea markets worldwide," said Erntell.
"China is not only an important market for Ikea, but also a valuable environment for exploring new approaches and innovations," he added.
As China continues to advance in areas such as digital retail and lifestyle innovation, experiences gained here are increasingly informing Ikea's development in other markets.
Lyu Mei, head of strategic consulting for JLL East China, said in addition to the paradigm shifting from "China for China" to "China for the world", "the world's second-largest economy has officially become the innovation lab of global retail business".
China's leading digital supply chains and agile response capabilities are reshaping multinational companies' global operations. Lyu said China is no longer at the end of the process, but is the source of new strategies.
Cut from a new cloth
Spanish fashion retail giant Inditex, owner of brands such as Zara, is another global player exporting initiatives first introduced in China.
A global company with stores in over 90 markets and online reach in more than 200 markets, Inditex has launched a variety of collaborative products and experiences over the years, which integrate Chinese cultural elements and foster deeper connections with Chinese customers.
Eugenio Bregolat, president of Inditex China, said representative examples include collaborations with local designer brands to launch co-branded series, and partnering with renowned Chinese artists to debut global co-branded collections.
In April 2025, a collection co-branded with artist Lin Fanglu debuted in China and was simultaneously released in international markets, including Spain, the UK, Italy, Japan and South Korea.
"It is also noteworthy that since 2016, Zara has consistently launched zodiac-themed sweater collections in the Chinese market for 10 consecutive years, reinterpreting 'zodiac culture' through a modern fashion lens and establishing a significant tradition for the brand to celebrate the Chinese New Year with local customers," said Bregolat.
Inspired by China's livestreaming boom, Zara introduced "show style" livestreaming in China in November 2023. Combining the immersive feel of a fashion show with the real-time interaction of live broadcasts, it received positive market feedback. The brand later promoted the livestreaming concept in other markets, including the UK, the United States, and parts of Europe via Zara Streaming.
"These digital interactive formats have not only enriched the customer experience in the Chinese market but have also provided inspiration for other global markets. In the future, we will continue to leverage the digital ecosystem of the Chinese market to explore more cutting-edge retail experience models," said Bregolat.
These collaborations and initiatives not only demonstrate Inditex's commitment to the Chinese market but also reflect its brand philosophy of continuously enriching customer experiences through cultural dialogue and creative fusion, he added.
Lan, the senior analyst at Euromonitor International, said: "China has accumulated a wealth of repeatable practices in product iteration, channel coordination, community-based operations, and building high-quality, cost-effective models. When these experiences are applied to other emerging or even mature markets, they are effectively reshaping multinational companies' global operations. In the long run, this also means that China's voice within these companies will continue to grow, with its role evolving from simply contributing revenue to serving as an innovation incubator and testing ground."
During Shanghai's annual briefing on commerce and investment in March, Lu Shan, the city's deputy mayor, said Shanghai and China should serve as a top "training ground" for companies and brands to build their future competitiveness, where they can hone and cultivate leading product and supply chain capabilities.
"We believe that the market share of products co-developed in China will determine these companies' global market positions in the future," Lu said.
wang_ying@chinadaily.com.cn
On a bright winter morning, veteran pearl farmer He Hanyong gently pried open a silver-lipped oyster. Inside, nestled against the iridescent mother-of-pearl, lay something extraordinary — not just an organic gem, but a symbol of an unlikely marriage between ecology and industry.
"Look," he whispered, carefully extracting a perfectly formed pearl that glistened under the tropical sun on a shoreline of Hainan province. "Eighteen millimeters. The water here gives them exceptional luster," He said of the pearl's size and shine.
The location of this cluster of pearl shells is anything but ordinary. It is near the discharge outlet of the Hainan Changjiang Nuclear Power Base — China's southernmost nuclear facility — where nationally protected silver-lipped pearl oysters are now thriving in waters warmed by the plant's cooling systems.
It is an unexpected sight: one of the nation's most advanced technological installations playing host to one of its most delicate traditional maritime industries.
"This area is rich in algae," said He, who is also head of the Hainan Qianzumeiji Pearl project in the Changjiang Li autonomous county, Hainan, gesturing at the clear waters.
"Silver-lipped pearl oysters need clean water with abundant nutrition. The thermal discharge zone creates perfect conditions — stable temperature, clean water, plenty of food. Just like people, they need the right environment to thrive," He added.
Pleasant surprise
As warm water is emitted from the nuclear facility, it nourishes a thriving ecosystem. Against all expectations, the waters near the plant became a sanctuary for a pearl species that had nearly vanished from the Chinese mainland's coastal waters due to industrial and aquaculture development.
"It started almost by accident," said Xu Chunsong, director of the environmental emergency department at the Hainan Nuclear Power Co. "We wanted to introduce species that could help purify water by reducing algae. We chose the silver-lipped pearl oyster. The results have been a pleasant surprise."
That understatement masks a remarkable achievement.
After more than two years of experimental cultivation, scientists and pearl farmers have not only mastered the technology of raising these sensitive mollusks in a nuclear facility's outflow waters but have created what might be a model for industrial-ecological coexistence nationwide.
The pearls themselves testify to the success of the experiment. The largest from the first phase reaches 18 millimeters in diameter, with nacre, or mother-of-pearl, so thick and the luster so brilliant that it rivals anything produced in traditional pearl farms.
"The water here nourishes them exceptionally well," said senior technical worker Chen Xian.
For the technicians who carefully extract the pearls from living oysters, the process is both science and art.
Chen demonstrated the procedure with practiced gentleness: allowing the oysters to awaken slowly in water and open naturally. "Patience is everything," he said, carefully probing for the pearl within. "We must respect the life that created this."
Yet inevitably, a question arises: Do pearls grown near a nuclear plant have radiation?
"The answer is definitely no," said Xu from the Hainan Nuclear Power Co.
"Our environmental monitoring team continuously tracks conditions around the plant, sampling both land and marine organisms for analysis. Radiation levels remain exactly the same as before the plant was built."
World-leading tech
This innovative project represents just one example of a broader transformation unfolding on the island.
After Hainan launched an island-wide special customs operation in December to position itself as a new frontier in China's further opening-up, projects like the nearby Linglong One nuclear reactor are capturing global attention.
Just several kilometers from where the pearl farmers tend their oysters, the world's first onshore commercial small modular reactor, or SMR, rises against the tropical sky. Linglong One is nearing completion, with installation 90 percent complete and core equipment undergoing adjustments.
"We are in the final stage," said Wei Zhigang, chairman of the Hainan Nuclear Power Co. "To be a pioneer, you have to innovate — and that's never easy. Linglong One took more than a decade of development."
The numbers tell part of the story: upon completion, the reactor will generate 1 billion kilowatt-hours annually, sufficient to power 526,000 households while reducing carbon dioxide emissions by 880,000 metric tons — equivalent to planting 7.5 million trees.
But the true significance lies in what Linglong One represents. Designed by China National Nuclear Corp, or CNNC, with self-developed intellectual property, Linglong One is the first onshore commercial SMR to pass a safety review by the International Atomic Energy Agency.
"It's like the evolution from desktop computers to laptops," Wei said. "Traditional large reactors are like desktop computers with separate components. Linglong One is an all-in-one laptop — compact, convenient and safe. Achieving this integration required overcoming significant technical bottlenecks."
The reactor also represents China's transition from a nuclear technology follower to a leading innovator, a change in status that has drawn global attention.
More than 1,000 visitors from almost 90 countries and regions have traveled to Hainan to inspect the reactor.
They include Rafael Mariano Grossi, director general of the IAEA, and delegations from the French Nuclear Safety and Radiation Protection Authority and the Ghana Energy Commission. Each came seeking insight into the technology that may help shape the future of global energy.
"We believe Linglong One will create miracles — whether in construction or investment," Wei said.
CNNC's Song Danrong, chief designer of Linglong One, sees the reactor as the product of the long-term development and growth of China's nuclear industry.
"Built on more than 30 years of nuclear research, design, construction, and operational experience, Linglong One represents the maturation of China's nuclear capabilities," Song said.
"When operational, it will help the Hainan Changjiang Nuclear Power Base form a pattern we call 'two dragons soaring together' — with second-generation improved reactors, third-generation Hualong One units, and the small modular reactor Linglong One all operating side by side."
Linglong One plans to commence commercial operation this year.
Powering AI
By next year, nuclear energy is expected to account for more than 50 percent of Hainan's power mix, one of the highest proportions among regions in the world.
Just as important is the vision emerging for nuclear energy's role in powering the digital future. As artificial intelligence triggers unprecedented global demand for computing power, the ultimate constraint has become clear: the need for vast, stable electricity supplies.
Tech giants like Microsoft and Google are actively exploring small modular reactors to power AI data centers.
"We are seeing strong demand from major power users like computing centers," Wei said.
"One of the key advantages of SMRs is their flexible placement. We can deploy them right where computing power is needed, enabling close load-matching. The international focus on SMRs is precisely because they are seen as a crucial power source for future computing needs. The endpoint of computing power is electricity."
China is positioning itself at the forefront of this convergence. Wei's company is exploring building a nuclear-powered zero-carbon industrial park in Hainan's Changjiang, with the aim of creating a "nuclear energy plus computing power" pilot zone to help solve one of the most pressing challenges the world faces in applying AI.
The vision extends even further.
"SMRs can also be installed on ships in the future, creating movable power plants — true mobile power banks," Wei said. "They can go wherever needed, maximizing our ability to meet diverse client demands."
Future being written
The pearl cultivation project near a nuclear plant is just a glimpse of China's broader innovation landscape in ecological economy. It is not an isolated curiosity, but evidence that technology and nature — when properly integrated — can achieve more together than apart, experts said.
Innovations such as growing rubber on saline land, raising crabs in deserts and herding sheep under solar panels are increasingly common in places such as the Xinjiang Uygur and Ningxia Hui autonomous regions and Gansu and Qinghai provinces.
Wang Shancheng, head of the department of resource conservation and environmental protection at the National Development and Reform Commission, said China's green development has achieved remarkable milestones that have captured global attention. The country has vigorously fostered green industries while driving the green and low-carbon transformation of traditional industries.
"The 15th Five-Year Plan (2026-30) period marks a critical phase in advancing high-quality economic and social development," Wang said.
"Facing new circumstances and tasks, it is essential to focus on achieving breakthroughs in four key areas: facilitating the green transformation of development models, advancing green technological innovation, strengthening policy mechanisms for low-carbon development, and enhancing international cooperation in green development."
Standing at the discharge outlet, and watching technicians carefully return oysters to the water after pearl extraction, one can witness the importance of the ecological initiatives. These mollusks, which nearly disappeared from Chinese mainland coastal waters, have found refuge in the most unexpected place. The nuclear plant that might have been their enemy became their savior.
For those familiar with China's ecological experiments, the future is already being written, with technology and nature working together.
Contact the writers at masi@chinadaily.com.cn
Hainan Free Trade Port's duty-free sales soared in the first two months, driven by a bustling tourism season and recent policy expansions that underscore its accelerating evolution into a global tourism and consumption hub, experts said.
Offshore duty-free purchases from January through February reached 10.59 billion yuan ($1.54 billion), a 25.9 percent increase year-on-year. The number of shoppers grew 16.6 percent to 1.28 million, while the volume of items sold rose 9.9 percent to 8.01 million units, according to Haikou Customs.
The surge follows the official launch of island-wide customs operations in the FTP on Dec 18, with officials saying the sales boom reflects the success of a series of moves to promote the FTP's opening-up.
For example, several adjustments to the offshore duty-free policy that took effect on Nov 1 have been widely seen as critical. Apart from an expansion of eligible duty-free product categories — from 45 to 47 — an adjusted offshore duty-free policy facilitated shopping for locals, as the new measures bring greater convenience to eligible Hainan island residents by significantly relaxing purchase restrictions on a variety of "instant purchase and instant pickup" duty-free goods.
Duty-free retailers are ramping up efforts to cash in on the opportunities brought by the consumption uptrend. Haikou International Duty Free City, operated by China Duty Free Group, has launched 17 new outlets since Jan 17. Haikou Meilan Airport Duty Free Shop has completed a 3,722-square-meter upgrade so far, adding 27 new outlets.
"I can now buy more types of offshore duty-free goods. Things like pet supplies and musical instruments, which were not available before, can now be purchased, and the prices are very favorable," said Li Huan, a tourist from Beijing.
The growing appeal extends to international visitors. Alice Ivanov, a tourist from Russia, praised the wide selection of international brands at China Duty Free Group's Sanya International Duty-Free City.
The number of foreign tourists peaked during the Spring Festival holiday period, with visitors arriving from Russia, Malaysia, Singapore and Thailand. During the nine-day holiday in February, the province welcomed 12.32 million visitors, a 28.9 percent year-on-year increase, generating 18.37 billion yuan in tourism revenue.
The momentum is expected to continue with events like the sixth CDF Watch Carnival, running from March 14 to April 26. Featuring over 70 global brands and exclusive product launches, the event is part of a broader strategy to use first-store and exclusive-product offerings to attract high-end consumers.
According to the local tourism authority, total tourist arrivals in Hainan reached 106 million in 2025, a 9.1 percent increase on a yearly basis, with spending up 10.5 percent to 225.43 billion yuan. Inbound overnight visitors surged 35.2 percent to over 1.5 million.
Liu Kun, deputy general manager of China Tourism Group, said,"Duty-free shopping is one of Hainan's marvelous credentials, and a key pillar in building the island into an international tourism and consumption destination."
Just two months after launching island-wide special customs operations, Hainan province is reporting a sharp rise in international arrivals and duty-free spending during the Spring Festival holiday, early evidence of how China's free trade port policies are reshaping the island into a global tourism and consumption hub.
Border inspection agencies processed more than 86,000 exit and entry trips between Feb 15 and Monday, a 43.3 percent increase from the same holiday period last year, according to the Haikou General Station of Exit and Entry Frontier Inspection. Travelers from Russia, Malaysia, Indonesia, South Korea, Kazakhstan and Singapore were among the leading sources of inbound visitors.
The number of visitors flying to Sanya on non-Chinese passports increased more than fourfold, with arrivals from Australia and Spain each rising more than fourfold, according to travel platform Qunar. International arrivals in Haikou by air doubled.
The growth reflects Hainan's expanded visa-free policies, part of China's broader push to develop the island into a globally connected free trade port. The measures include visa-free entry for nationals of 86 countries, as well as special arrangements such as a 144-hour visa-free entry for foreign tour groups from Hong Kong and Macao and a 15-day visa-free entry for cruise tour groups.
To better serve international travelers, Hainan's three major airports have launched 24-hour multilingual inquiry hotlines. At popular attractions such as Sanya's Wuzhizhou Island scenic area, multilingual service posts staffed by Russian — and English-speaking volunteers assist visitors with tour routes and ticketing.
"Customs clearance was very convenient," said Piotrowski Robert, a Polish traveler arriving in Sanya on his first visit to China.
Yaroslava Pateychuk, a tourist from Belarus, cited both hospitality and improved connectivity. New weekly direct flights between Minsk and Sanya have made travel easier, while friendly locals enhanced her experience, she said.
Beyond beaches, foreign visitors are increasingly seeking cultural and wellness experiences, reflecting the island's evolving tourism offerings. Traditional Chinese medicine health tourism has gained popularity, particularly among Russian visitors. Acupuncture and cupping services are widely available in Sanya's Dadonghai scenic area, where many clinics feature Russian-language signage.
Cultural programming has also expanded. The Hainan Ocean Paradise Resort, located in Lingshui Li autonomous county, is hosting an international new year carnival from Feb 7 to March 3.
"This is by no means a simple introduction to performances," said Liu Xiaoou, chairman of the resort. "In this first year following the island-wide special customs operations, it serves as a 'window demonstration', conveying to tourists Hainan's new image as open, inclusive and connected to the world."
The surge in visitor numbers has translated into strong duty-free sales, a key pillar of Hainan's free trade port development. From Feb 15 to 18, Haikou's offshore duty-free stores recorded total sales of 428 million yuan ($62 million). China Duty Free Group's Haikou International Duty-Free City accounted for 233 million yuan, up 24.6 percent year-on-year.
In Sanya, daily offshore duty-free sales exceeded 200 million yuan from Feb 15 to Monday. The Sanya International Duty Free Shopping Complex reported customer traffic of more than 80,000 for three consecutive days from the first day of Chinese New Year.
Shopping at duty-free stores before departure has become a hallmark of the holiday experience. Duan Nanlan, sales department director at the complex, said wait times at popular brand counters exceeded 30 minutes during peak hours.
China is set to launch a nationwide campaign to ignite consumer spending during the record nine-day-long Spring Festival holiday beginning Sunday, in a concerted push to funnel festive goodwill into robust economic momentum at the start of the new year, officials and economists said.
The campaign, targeting the most important holiday in the Chinese calendar, includes consumer goods trade-ins, a prize invoice pilot program wherein consumers with valid purchase invoices above a set threshold can enter a lottery to win cash prizes and enhanced services for overseas tourists, to help domestic consumers and international travelers enter the festive spirit and enjoy great deals, they added.
"This Sunday marks the start of the longest Spring Festival holiday on record — a prime time for purchasing gifts, visiting family and friends, and holiday travel," Vice-Minister of Commerce Sheng Qiuping told a news conference on Wednesday.
Coupled with a series of visa facilitation policies and targeted international marketing campaigns like "Shopping in China", these efforts have packaged the ancient festival's authentic rituals and vibrant atmosphere for a global audience.
There is a huge rush among international tourists to visit China during Spring Festival, with flight bookings soaring 400 percent in the two weeks before the festival compared to the same period last year, data from online travel platform Ctrip showed.
Leading the trend are travelers from Argentina, from where bookings skyrocketed 900 percent year-on-year, while bookings from European nations, including the Netherlands, Spain and the United Kingdom, all saw increases exceeding 200 percent.
Vice-Minister of Commerce Sheng revealed that the country's 13,000 tax-refund shops for overseas visitors are already stocked with premium products, with the refund program offering foreign visitors shopping in China a discount of about 10 percent on their purchases.
Last year, the number of overseas visitors claiming tax refunds surged by 305 percent year-on-year, data from the State Taxation Administration showed.
"China has so many shops and there are so many styles available. It is really interesting to go around and check what Chinese brands provide," said Ekaterina Ermakova from Russia, who is visiting Beijing, adding, "I really love that Chinese people are very conscious about their culture."
The Commerce Ministry is also encouraging individual localities to introduce multilingual Spring Festival folklore maps, designed to help foreign travelers easily locate and access iconic experiences such as traditional temple fairs, time-honored brand shops, and intangible cultural heritage markets.
"We invite all to visit China during Spring Festival, to shop in China, and to join us in sharing the joy of the Chinese New Year," Sheng said.
Cheng Shi, chief economist at ICBC International, said that the influx of international consumers, who have higher expectations from product quality, brand diversity, service standards and convenience, will push the domestic commercial system to accelerate its alignment with international norms.
The improvements in the internationalized consumption environment are not exclusive to foreign visitors; they also enhance the consumption experience for local residents, thereby unlocking domestic consumption potential at a higher level, Cheng added.
During the holiday period, the ministry will also guide local authorities to increase the volume of trade-in subsidies across the nation, and implement the prize invoice program in 50 pilot cities with enhanced bonus payouts to boost participation.
In January, China front-loaded 62.5 billion yuan ($9.04 billion) of ultra-long-term special treasury bonds as the first batch of funds to support trade-ins of consumer goods this year, according to the National Development and Reform Commission, the country's top economic regulator.
On top of this, Sheng added that a total of 2.05 billion yuan has been allocated by local governments for direct consumer benefits via vouchers, subsidies and digital cash red packets.
Wang Qing, chief macroeconomic analyst at Orient Golden Credit Rating, said: "The Spring Festival period is a natural peak for consumption. These targeted measures are designed to amplify that effect, providing both the motivation and the means for households to spend."
He added that a successful holiday push would also set the tone for the remaining months of the year by bolstering business confidence and consumer sentiment.
Grace Tao, vice-president of Tesla, said that the scale and vitality of China's market are "unmatched" globally.
"This shared market is more than a destination for products — it is a testing ground and application arena for innovation," Tao said. "Feedback from Chinese consumers and the diversity of real-world usage scenarios have accelerated the maturation of our technologies and strengthened the global competitiveness of our products."
A sharp rise in visa-free arrivals, foreign trade registrations and duty-free spending has marked the first month of island-wide special customs operations at the Hainan Free Trade Port, underlining the growing international reach of its openness.
Key policies under the special customs operations launched on Dec 18 are now showing their impact, with officials pointing to early gains in trade, tourism and consumption as signs of momentum building.
From Dec 18 to Saturday, Hainan added 5,132 newly registered foreign trade enterprises, roughly equivalent to an average quarter's total in 2024, according to the provincial department of commerce. Customs data show that 53 zero-tariff import transactions were completed during the period, valued at 753 million yuan ($106 million), a year-on-year increase of 39 percent. Tariff exemptions totaled 109 million yuan, up nearly 195 percent.
A further 214 transactions were carried out under a policy granting import tariff exemptions to goods that gain at least 30 percent added value after local processing. These deals were valued at 85.87 million yuan, reinforcing indications that core measures are beginning to work.
Guan Jirong, deputy secretary-general of the Communist Party of China Hainan Provincial Committee and executive deputy director of the Office of the Hainan Free Trade Port Working Committee, said the Hainan Free Trade Port has achieved a stable start and yielded initial results, adding that policies were being implemented smoothly and risks remained under control.
Trade activity has been particularly strong at Yangpu Port, the island's largest ocean freight gateway. It handled 261 vessel calls and 325,700 twenty-foot equivalent units of cargo during the first month, accounting for more than 70 percent of Hainan's imports. Goods ranging from coconuts to construction materials entered through the port.
Customs authorities have also simplified procedures, reducing declaration items for eligible bonded and zero-tariff goods from 105 to 33, speeding up clearance.
Beyond traditional trade, Hainan has opened 38 categories of goods for bonded repair, making it China's most open region for the business. Shenzhen-based SonoScape Medical Corp has begun repairing medical device components in Haikou, reporting cost savings of 20 percent to 30 percent.
"The policy allows overseas equipment that is difficult to repair abroad to be serviced domestically," said Li Xiaoxi, general manager of the company's Hainan subsidiary.
Tourism has expanded sharply under visa-free entry policies. Immigration authorities recorded 317,000 cross-border movements in the first month, including 87,000 visa-free foreign arrivals — a 64 percent increase from a year earlier. These travelers accounted for 93 percent of all international visitors, most arriving from Russia, Malaysia, Indonesia, the Republic of Korea, Kazakhstan and Singapore, primarily for tourism.
"The visa-free policy makes traveling to and from Hainan exceptionally convenient," said Heng Aik Lim, a visitor from Malaysia.
Consumer spending has also risen. From Dec 18 to Saturday, duty-free sales reached 4.86 billion yuan, up 46.8 percent year-on-year. The number of shoppers increased 30 percent to 745,000, with average daily spending of about 160 million yuan. In the resort city of Sanya, daily duty-free sales exceeded 100 million yuan.
Immigration officials said further measures would be introduced to ensure smooth cross-border movement during major upcoming events, including the Spring Festival travel period, the Boao Forum for Asia Annual Conference, the China International Consumer Products Expo and the 6th Asian Beach Games.
chenbowen@chinadaily.com.cn
BEIJING — At a bustling appliance store near Shanghai's Zhongshan Park, sales staff enthusiastically demonstrated product features and calculated discounts. The summer shopping season has been in full swing.
A local resident surnamed Yao was looking for an energy-efficient air conditioner and was informed by sales staff that the latest models not only offer AI-powered energy savings, but also include convenient features such as smartphone remote control and an anti-direct-blow design.
"I never realized how quickly home appliances were evolving until I visited the store," Yao said. After careful comparison, he chose a model originally priced at 5,999 yuan ($840), but thanks to government subsidies and store discounts, he paid only 3,599 yuan.
Yao is among hundreds of millions of consumers across China whose spending habits have been reshaped by a rapidly evolving market and government-backed initiatives, as the world's second-largest economy seeks to stimulate consumption and strengthen domestic demand as a key growth driver.
With efforts like the ongoing consumer goods trade-in program, which has spurred purchases of more than 109 million home appliances so far this year, China recorded a 5 percent growth in retail sales of consumer goods for the first half of 2025. The pace is 0.4 percentage point faster than the first quarter.
During the first four years of the 14th Five-Year Plan (2021-25) period, final consumption contributed 56.2 percent of the GDP increase on average, an 8.6 percentage point increase over the previous planning period, official data showed.
Amid this shift, new consumption trends have taken center stage, fueled by innovative business models, diverse service and experience offerings, and growing preference for sustainable and high-tech products.
According to Commerce Minister Wang Wentao, the consumer goods trade-in program has been "more than a policy to stimulate spending".
"More importantly, it has promoted a shift toward smart and green products, which in turn helps to upgrade people's quality of life," Wang told reporters last month while briefing on the country's developments in domestic consumption over the past four years.
While government incentives can boost market demand and prompt manufacturers and service providers to increase supply, encouraging consumption in sectors like high-tech and new energy helps drive industrial upgrading and structural adjustments, said Bao Xiaohua, a chair professor at Shanghai University of Finance and Economics.
Also notable is the rapid growth in services consumption, as Chinese consumers increasingly embrace spending on services and experiences. From 2020 to 2024, China's services consumption grew at an average annual rate of 9.6 percent.
In the first half of 2025, data from the State Information Center indicated that the index measuring life services consumption increased 15.7 percent year-on-year, with sectors like entertainment, dining and accommodations showing robust growth.
Driving the services consumption boom are new consumption scenarios such as sporting events, performances, cultural exhibitions and themed markets. The Su Super League, a provincial amateur football tournament in East China's Jiangsu province that gained huge popularity this year, has given a major boost to local tourism and hospitality industries.
During the third round of matches, which coincided with the Dragon Boat Festival holiday in early June, Jiangsu welcomed 12.41 million visitors and earned 4.69 billion yuan in tourism revenue.
Other pro-consumption efforts include further opening-up to attract more quality goods and services into the Chinese market. Over the past years, China has fostered international consumption center cities, established national demonstration zones for innovation and promotion of imports, and hosted major events such as the China International Import Expo and the China International Consumer Products Expo.
"China's vast market has become a shared market for the world and will continue to serve as a key source of growth and vitality for the global economy," the commerce minister said.
Looking ahead, as China approaches the final phase of its 14th Five-Year Plan, market observers believe consumer demand will sustain its strong momentum from the first half and help ensure the plan's successful completion.
Policies like the consumer goods trade-in program are expected to remain effective, driving sales growth for related products. Meanwhile, with holidays like summer vacation and the upcoming National Day, services consumption is also set to enter its peak season, according to experts.
Ma Hong, a senior researcher at the Guangkai Chief Industry Research Institute, said services spending will remain a key driver of consumption growth in the second half of the year. "Further opening-up of the sector, coupled with innovations in consumption scenarios, will boost service consumption in areas like telecommunications, healthcare and elderly care," Ma said.
In one of the latest announcements, 69 billion yuan, in China's third batch of ultra-long special treasury bond funds, was allocated last month to support the consumer goods trade-in program, with the fourth batch scheduled for October.
The country also introduced a nationwide child care subsidy program last week, which will offer families 3,600 yuan per year for each child under the age of three, as part of broader efforts to address livelihood problems and boost consumer confidence.
"More funds and resources will be invested in people and used to meet their needs" to help create more jobs, increase people's incomes and reduce their burdens, and provide more incentives to stimulate consumption, this year's Government Work Report has pledged.
For the next five years, Commerce Minister Wang said China will transform successful policies and effective practices from the 14th Five-Year Plan into long-term, regular measures, while staying ready to introduce new policies to navigate a complex international environment. "Our tool kit is well-stocked, and we will be fully prepared."
Xinhua
Huaxizi, also known as Florasis, a Chinese beauty brand with cultural and aesthetic attributes, continues to increase research and development and smart manufacturing efforts, as the domestic cosmetics sector becomes more high-end and technology-driven.
Like many other industries, expanding research and development while embracing the application of innovative technologies have become important foundations on which Chinese cosmetics brands can enhance their international competitiveness.
The Zhejiang province-based company built a smart factory in its home city of Hangzhou and put it into operation last year. With seven digital production lines, the annual production capacity of the plant is about 50 million pieces of makeup products, including skincare products and powder makeup.
"Intelligent manufacturing has become the core engine that drives high-quality development. The factory helps promote the transformation and upgrading of the domestic cosmetics manufacturing industry toward more high-end, intelligent and green growth," said Zhang Dayong, vice-president of EastGarden Cosmetics Group, the parent company of Florasis.
Florasis said smart manufacturing mainly relies on the collaborative application of digital management, emerging artificial intelligence technologies and automated equipment. For the application of AI technologies, Florasis connects to the Deep-Seek model to achieve process simulation. With intelligent vision technologies, the factory's production lines have achieved automatic recognition and elimination of defective products.
In addition, the smart factory uses renewable energy and has a paperless production system in place to achieve sustainable green production. For example, the distributed photovoltaic power system on the rooftop of the factory utilizes solar energy to generate power and can effectively reduce carbon dioxide emissions by approximately 2,500 metric tons a year, Florasis said.
Domestic beauty brands have been focusing on technological research and development and exploring the unique value of Chinese ingredients. Those brands are increasingly moving toward the mid- to high-end of the value chain.
"Fueled by the advancement of science and technologies, China's cosmetics sector is rapidly adapting to new trends, reshaping itself and seizing new business opportunities," said Yan Jiangying, chairman of the China Association of Fragrance Flavor and Cosmetic Industries.
In the past few years, an increasing number of Chinese brands with local cultural attributes and innovative vibes have expanded their presence overseas, including domestic beauty brands Proya, Judydoll and Perfect Diary.
Florasis launched a new flagship store in Tokyo in January, following the company's opening of a counter at a department store in Paris late last year. The counter made it the only Chinese beauty brand to operate a physical shop in Europe.
Meanwhile, driven by the booming growth of cross-border e-commerce, domestic beauty products have gained a broader share of the international market via exports.
In 2024, the total export value of Chinese cosmetics reached 36.91 billion yuan ($5.12 billion), growing 14.11 percent year-on-year, according to data from the General Administration of Customs.
The main recipient countries of China's exported beauty products were the United States, the United Kingdom, Indonesia, the Netherlands and South Korea. The US was the largest export market for Chinese cosmetics, with the export value reaching 7.9 billion yuan last year.
