China Cross-Border Consumption Recovery Trends
As the sustained impact of the pandemic on regular business and social activities in China has gradually subsided, intercity connectivity has returned to pre-COVID norms, and this renewal of societal engagement has been accompanied by a steady recovery in cross-border travel and consumption. At the start of the year, China’s Ministry of Commerce designated 2023 as the Year of Consumption Revitalization, and the central government introduced policies and measures to accelerate the recovery and expansion of consumption at the local level. With these support measures in place, national domestic consumption has staged a revival, with total consumer retail sales growing by 8.2% y-o-y in the first half of 2023. In particular, Hong Kong-mainland China cross-border consumption has shown notable signs of recovery, and is now emerging as a highlight in the China retail market.