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China: China's new duty-free policy ignites retail expansion in downtowns

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China's upgraded duty-free policy, in place for one month since taking effect on Nov 1, has widened consumer choices and fueled a wave of new duty-free stores in city centers. At the end of October, a notice jointly issued by the Ministry of Finance and four other government departments outlined improvements to the policies of duty-free shops aimed at boosting consumption. The new measures mainly focus on four aspects, including optimizing the tax-refund and duty-free policies, as well as further expanding the range of products available in duty-free shops. The guidelines encourage duty-free shops to stock a wider array of more trendy and hot-selling items, including mobile phones, micro-drones, sporting goods, health food, and pet food, aiming to enrich tourists' shopping choices. In late November, Tianjin unveiled its first downtown duty-free store in a bustling commercial district. This outlet features both duty-free and duty-paid sections, offering a diverse selection of perfumes, cosmetics, watches, sunglasses, and jewelry, among others. Travelers holding valid entry-exit documents and outbound tickets for flights or international cruises within 60 days can take advantage of the duty-free shopping experience. A Russian shopper, Mulan, expressed her enthusiasm for the new duty-free offerings. "We should buy some presents for our family. And I think this is a good opportunity to buy something from different countries. Because I'm from Russia, and I can send my family the presents," she said. Xi'an, the capital of Shaanxi Province, also recently opened northwest China's first city-center duty-free store. This shop creatively incorporates iconic local cultural elements into its product designs and store decor, featuring photo-friendly installations and unique cultural products that enhance the shopping experience for visitors. These new duty-free stores are offering more domestic and trendy brands alongside time-honored brands and intangible cultural heritage products, giving shoppers more options. SHOTLIST: Tianjin Municipality, north China - Recent 1. Downtown duty-free shop; 2. Various of items for sale; 3. SOUNDBITE (English) Mulan, Russian consumer (full name not given): "We should buy some presents for our family. And I think this is a good opportunity to buy something from different countries. Because I'm from Russia, and I can send my family the presents."; 4. Various of Mulan, friend at duty-free shop; Xi'an City, Shaanxi Province, northwest China - Recent 5. Various of exterior of duty-free shop, banner; 6. Various of items for sale, consumers. [Restrictions: No access Chinese mainland]

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