China Set For Shopping Bonanza As $14,000 Tax-Free Allowance Kicks In

China Set For Shopping Bonanza As $14,000 Tax-Free Allowance Kicks In

Busy busy: Customers purchase cosmetics at a duty-free shopping center on June 30 in Sanya, Hainan ... [+] the day before new allowances came in. (Photo by Wang Xiaobin/China News Service via Getty Images)



China News Service via Getty Images



Chinese travelers can avail themselves of a new upper limit of RMB100,000 ($14,140) in off-shore duty-free shopping from today. The move is part of a master plan from the central government to develop a free trade port on the tourist island of Hainan“”but it could also impact airport duty-free stores worldwide as more sales start to concentrate in China.



The decision to increase the limit from RMB30,000 ($4,240) China was first announced a month ago, and the implementation today was sanctioned by the Chinese Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation.



It coincides with the passing of a controversial new security law for Hong Kong, following mass protests last year that crippled this Special Administrative Region of China. Months of rioting in the former British colony led to a crash in retail sales in the second half, sparking a recession. Bigger falls were seen this year due to Covid-19's impact.