Fuzhou, capital of Fujian Province, welcomed its first downtown duty-free store on December 18, 2025. The new facility features a multifaceted model, selling duty-free and taxed domestic and international products, and online and physical channels to meet consumer needs.

Liu Fanghao, an official at Fuzhou Customs, told the Fuzhou Evening News newspaper it is the city's fourth duty-free store and the first in the central business district. "It enhances the city's ability to build an international consumption hub and its appeal to international visitors," he said.

The store is located in Gulou District and covers nearly 1,000 square meters. It features two main zones: a duty-free zone and a taxed goods zone. Travelers scheduled to leave China from Fuzhou by air within 60 days can shop in the duty-free area. The taxed goods area is open to all consumers for immediate purchase and collection.

Xu Shan, General Manager of China Duty Free Group's Fuzhou Downtown Duty-Free Store, said in addition to selling duty-free items from numerous internationally renowned brands, the store also sells Fujian local intangible cultural heritage handicrafts such as lacquerware and cultural and creative products developed in collaboration with Taiwan cartoonist Jimmy (the pseudonym of popular Taiwan cartoonist Liao Fubin, best known for his dreamy colors and striking scenes that evoke the melancholy and loneliness of big city life—Ed.). Overseas consumers are entitled to departure tax refunds when purchasing domestic products in the taxed goods area.

"With the downtown duty-free store, I can now select goods in the city center and no longer have to rush to the airport well ahead of my flight," a Fuzhou resident surnamed Zhang, a frequent international traveler, said. "The prices are also very favorable. For example, the women's shoes I bought today were over 1,400 yuan ($200) cheaper than the standard price."

The duty-free merchandises sold at the store are packed and sealed under customs supervision and delivered to the duty-free goods pickup point in the departure area of the Fuzhou Changle International Airport. Customers can pick up their goods by presenting their purchase vouchers and valid entry/exit documents. The store's debut is part of a wider trend, with multiple urban duty-free outlets opening across China in 2025 in response to a policy released in August 2024.

The policy, issued by the Ministry of Finance (MOF) and four other departments, aims to promote the healthy and orderly development of these urban outlets. The policy said downtown duty-free stores will be established in eight cities including Guangzhou and Shenzhen in Guangdong Province, Tianjin Municipality and Wuhan in Hubei Province.

In Guangzhou, the inaugural downtown duty-free shop opened in August 2025 at the Kwang Chow Friendship Store within the city's central business district, instantly drawing large crowds due to its prime location.

Chengdu, Sichuan Province, launched its first downtown duty-free store in September 2025. This location offers a mix of international brands alongside distinctive local specialties, including Sichuan liquor; cultural creative products inspired by Sanxingdui, the site of the remains of the ancient Shu civilization, with bronze artifacts dating back 3,000 to 3,600 years; and panda-themed merchandise, as Sichuan is known as the "home of the giant panda."

Xi'an, Shaanxi Province, welcomed its pioneering downtown duty-free shop in November 2025, which was also the first downtown duty-free store in China's entire northwestern region.

Enhancing traveler experience

The MOF followed the above policy on downtown duty-free stores with a notice calling for a revamp of all duty-free stores across the country. Jointly released with four other government departments in October 2025, and effective from November 1, 2025, the measures include optimizing the tax-refund and duty-free policies, as well as further expanding the range of products available in duty-free shops.

The notice specified that China will refine the implementation of tax refund and exemption policies for domestic goods, support the sale of domestically produced items in all duty-free stores, and encourage the inclusion of more high-quality products that embody traditional Chinese culture, further increasing the share of domestic goods in duty-free stores.

According to the notice, domestic goods procured for sale in outbound port and downtown duty-free stores are treated as exports, eligible for value-added tax and consumption tax rebates or exemptions. Furthermore, the area dedicated to selling Chinese products in outbound port and downtown duty-free stores should, in principle, not be less than one quarter of the total area.

On December 23, 2025, the Ministry of Commerce (MOFCOM) announced the recommended list of guochao products for downtown duty-free shops. Guochao, literally meaning "national tide," refers to products, from fashion to food, infused with traditional Chinese cultural elements. The list covers 19 categories including food and beverages, leather bags, apparel, handicrafts and electronic products, meeting the diverse needs of different consumer groups. This list will provide guidance for duty-free enterprises in product selection and procurement.

Ren Hongwei, Director of the Retail Development Office at the Department of Circulation Development of the MOFCOM, told the 21st Century Business Herald newspaper that introducing domestic products into duty-free stores helps connect them directly with the international market, showcasing the strength and charm of Chinese brands and enhancing their international recognition and reputation. At the same time, doing so also meets domestic consumer demand for high-quality goods, making the purchase of premier domestic products more convenient.

Chen Juanling, General Manager of Public Affairs at Shanghai-based cosmetics brand Chando Group, told the People's Daily newspaper that the company's star products are gaining popularity among overseas travelers. She said the policies encouraging domestic beauty products to enter duty-free channels will help them explore a broader market, directly drive sales growth, and motivate them to convey Chinese beauty technology and cultural value globally, advancing their international presence. Chando is already selling its products in duty-free stores in Shanghai, Hainan Province, Guangzhou and Shenzhen and has plans to expand into others.

The notice also pledged to improve duty-free shopping experiences for consumers, supporting online duty-free shopping for outbound port, inbound port and downtown duty-free stores.

A manager at the Guangzhou Downtown Duty-Free Store told People's Daily that through mini apps, consumers can reserve and purchase goods for airport pickup upon departure, offering greater convenience.

Li Xuhong, Vice President of Beijing National Accounting Institute, said allowing services like "online purchase plus offline pickup" aligns with the current consumer habit of online shopping, enhancing convenience and further stimulating traveler spending.

Notably, China will ease approval requirements for duty-free stores by delegating authority over the establishment of outbound port duty-free stores. It will also refine the method for determining the areas in which duty-free stores operate and support local governments in optimizing the overall spatial distribution of duty-free stores based on regional conditions, according to the notice.

Li said these policies will increase efficiency in establishing duty-free shops, enabling localized distribution optimization. This will allow more regions to establish duty-free stores based on passenger flow, tourism resources and other factors. For consumers, this means a more rational, convenient and broader distribution of duty-free stores, significantly enhancing shopping accessibility. BR

Copyedited by G.P. Wilson

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