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HomeWeekly China EconomySpring Festival Consumption Boom Highlights Strength of China’s Domestic Demand

Spring Festival Consumption Boom Highlights Strength of China’s Domestic Demand

According to a report by China Daily on March 8…

China’s record-long Spring Festival holiday delivered a strong boost to travel, retail and technology-driven consumption, offering fresh evidence of the resilience of the country’s consumer economy.

From packed ski resorts in the northeast to booming duty-free shopping in the southern island province of Hainan, the nine-day Lunar New Year holiday — the longest on record — triggered a surge in travel and spending across the country.

According to data from China’s Ministry of Transport, cross-regional passenger traffic during the holiday climbed 8.2 percent year-on-year to exceed 2.8 billion trips, highlighting the vast scale of the country’s annual holiday migration.

Cross-border travel also gained momentum. During the first six days of the holiday, outbound travel spending rose sharply in several Asian destinations. Offline transactions via WeChat Pay in Malaysia and the Maldives increased by 131 percent and 186 percent respectively compared with the same period last year, according to platform data.

China has also stepped up efforts to attract foreign visitors. Beginning Feb 17, authorities expanded unilateral visa-free access to citizens from Canada and the United Kingdom, bringing the total number of eligible countries to 50. Officials have also expanded the network of tax-refund stores nationwide and improved digital payment services to make it easier for overseas travelers to shop in China.

These measures, combined with growing exposure on global social media platforms, have helped fuel rising interest among international tourists in experiencing China’s Lunar New Year celebrations.

At the Universal Beijing Resort, Dutch visitor Finn Grunbauer purchased holiday-themed souvenirs, describing the festive atmosphere as “something you want to bring home.”

China’s National Immigration Administration reported that average daily border crossings during the holiday reached 1.98 million, up 10.1 percent year-on-year.

Domestic tourism also showed strong momentum. Ski resorts in northern China saw a surge in visitors, reflecting the continued popularity of winter sports following the legacy of the 2022 Winter Olympics.

Meanwhile, China’s duty-free market recorded robust growth. The island province of Hainan — which is being developed as a free trade port — reported offshore duty-free sales of 2.72 billion yuan ($392 million) during the holiday period, representing a 30.8 percent year-on-year increase.

Beyond tourism and retail, the holiday also highlighted emerging consumption trends tied to technology and lifestyle upgrades. Transactions related to travel and lifestyle entertainment via WeChat Pay rose more than 20 percent compared with the same period last year.

Smart home appliances equipped with artificial intelligence features — including robotic vacuum cleaners and intelligent climate-control air conditioners — were among the most popular consumer electronics purchases during the holiday shopping season.

Retailer Suning.com said that products incorporating AI-driven features accounted for more than half of its new-product sales during the holiday period.

Economists say these trends reflect a broader structural shift in China’s consumption model. With the country’s per capita GDP approaching $14,000, consumer demand is increasingly shifting from volume expansion toward higher-quality and experience-based spending.

According to analysts at China’s State Information Center, new technologies, innovative retail formats and evolving lifestyle preferences are accelerating the transformation of China’s consumer economy and unlocking further growth potential in the domestic market.

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