Long-term benefits
Far from being a "failure," the policy has clearly spurred cross-border economic activity, as shown by the People's Bank of China's latest findings. During the 2024 Chinese New Year holiday, which ran from Jan. 28 to Feb. 4, international tourist transactions saw a dramatic rise.
The total number of cross-border transactions processed by China UnionPay and NetsUnion Clearing Corporation increased 124.54 percent, and the total transaction value grew 90.49 percent.
Critics in the West often overlook the policy's broader strategic benefits, particularly its role in regional branding and industrial advancement. As noted by Professor Chen Nan of China's Henan University, inbound tourism boosts both upstream and downstream industries, upgrades the market, enhances products and services and fosters innovation.
To be more specific, by simplifying the process for inbound tourists, the policy has invigorated interconnected sectors -- from hospitality and retail to logistics and cultural services -- driving innovation, improving service quality, and spurring demand for high-value, localized products.
These ripple effects, far from being limited to short-term tourism, are embedding long-term structural upgrades in China's consumption-driven economy.
In a sign of further financial opening, China has made mobile payments more accessible to foreigners. Travelers can now link Visa, Mastercard and other major credit cards to local platforms like Alipay and WeChat Pay.
Data from the People's Bank of China showed that this year's Chinese New Year holiday saw a significant rise in transactions made by foreign visitors on WeChat, which surged by 134 percent compared to last year's Spring Festival. Meanwhile, spending through Alipay during the first five days of the holiday increased by 150 percent.
These figures reflect not only the convenience of mobile payments but also the growing enthusiasm of foreign tourists to purchase Chinese goods and immerse themselves in local culture.
Dai Bin, president of the China Tourism Academy, noted that inbound tourism not only boosts consumption in a country's tourism sector but also injects fresh energy into the broader market.
Its impact extends to enhancing infrastructure, public services and other key areas, creating a sustained, far-reaching momentum for growth, said Dai.
Shao Guanhua, deputy director of the Customs Policy Research Department at the General Administration of Customs, said that by streamlining visa processes, China has signaled an open and inclusive approach to the world.
Embracing the world with this openness, China is channeling its own growth to fuel global momentum, Shao said, adding that in doing so, it not only counters the rise of unilateralism but also underscores China's commitment to advancing globalization, offering renewed confidence in the global economic recovery.
