HONG KONG — In a significant move aimed at bolstering tourism and cross-border business amidst a slowing economy, China has notably expanded its visa-free programs over the past three months. The latest additions to this list include Ireland and Switzerland, following recent grants of visa-free access to citizens of France, Germany, Italy, the Netherlands, and Spain for a 15-day period.
China is extending its outreach to European travelers, while also cultivating relations with Asian counterparts. Malaysians have recently gained the same exemption, and a recent agreement with Thailand signals the mutual waiver of visa requirements. These initiatives come against the backdrop of a significant decrease in foreign investment into China amid strained relations with Western governments and challenges posed by three years of tight zero-COVID restrictions and an uncertain regulatory landscape.
While the new visa policies have been welcomed by foreign chambers of commerce, some experts remain skeptical about their impact. Nick Marro, lead analyst at the U.K-based Economist Intelligence Unit, notes that geopolitical concerns and slowing growth may still overshadow the intended effects of visa relaxations.
In March last year, after fully reopening its borders, Beijing reinstated visa-free travel for visitors from Singapore and Brunei. The government also streamlined landing visas for overseas business travelers attending exhibitions or meetings. In a further effort to facilitate international travel, visa fees were slashed by 25% at the end of the year, and Norway was added to an expanded list of 54 countries whose nationals can enter without a visa on layovers of up to 144 hours.
Europe emerges as a strategic focus for the Chinese government, particularly as relations with the U.S. remain tense. Premier Li Qiang concluded a European tour in Dublin this month, emphasizing China as an investment opportunity at the World Economic Forum in Davos.
Wen-Ti Sung, a nonresident fellow with the Atlantic Council’s Global China Hub, suggests that China’s visa changes carry a diplomatic message, signaling its key allies. “China is loosening visa restrictions to signal which countries are its diplomatic VIPs,” he says.
However, Beijing appears to be selective in its approach. While Japan and Singapore once enjoyed a 15-day exemption, only Singapore has seen the restoration of this privilege. American travelers, though still required to obtain visas, now face less stringent requirements, indicating a prioritization of economic revitalization over geopolitical tensions.
These new policies could potentially stimulate cross-border exchanges and increased flights, with the Civil Aviation Administration of China estimating the number of international passenger flights to rise to 6,000 per week by the end of the year. This is a marked increase from the 4,600 recorded at the end of 2023, representing 62.8% of pre-COVID levels.
Gary Ng, senior China economist at Natixis, points out that capital flows from inbound tourism remain subdued, hovering at around 45% of pre-pandemic levels in the second half of 2023. He emphasizes the need for a revival in outbound travel to sustain China’s tourism industry, as increased spending by Chinese tourists abroad has already shown signs of recovery.
