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Sun Yeli appointed minister of culture and tourism by China's top legislature

Sun Yeli was appointed as minister of culture and tourism, replacing Hu Heping, according to a decision that was adopted at the seventh session of the Standing Committee of the 14th National People's Congress on Friday.

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Assistant Secretary Grant T. Harris Leads U.S. Delegation to 2024 U.S.-China Tourism Leadership Summit to Promote U.S. Travel and Tourism and Enhance People-to-People Ties

FOR IMMEDIATE RELEASE Tuesday, May 21, 2024 Contact: Office of Public Affairs Email: [email protected] Phone: 202-482-3809

WASHINGTON - From May 21-23, Assistant Secretary of Commerce for Industry and Analysis Grant T. Harris will travel to Xi’an, People’s Republic of China (PRC), where he will lead the U.S. delegation to the 14th U.S.-China Tourism Leadership Summit.  The Summit will underscore the Biden-Harris Administration’s commitment to strengthen the U.S. travel and tourism sector and enhance people-to-people exchanges with China.  As announced in August 2023 by U.S. Secretary of Commerce Gina Raimondo and former PRC Minister of Culture and Tourism Hu Heping, the Summit will convene for the first time since 2019 and bring together American and Chinese public and private sector travel and tourism leaders to support people-to-people connections and forge partnerships that will foster economic growth in both countries.

“Since day one of the Biden-Harris Administration, the U.S. Department of Commerce has made it a top priority to rebuild the travel and tourism sector in a way that spurs inclusive economic growth, creates good jobs, and bolsters conservation and sustainability,” said Assistant Secretary Harris. “This Summit is an opportunity to increase international visitation to the United States, which is important to jobs and communities across the country.”

Prior to the pandemic, the United States welcomed nearly 3 million Chinese visitors annually, who spent $33 billion while visiting the country. Restoring Chinese visitation to 2019 levels would add over 50,000 direct American jobs. Including indirect jobs and students studying in the United States, that number increases to an estimated 400,000 American jobs.

In 2023, travel and tourism was the second-largest services export (including exports of travel and air passenger transport services) for the United States and accounted for 21% of all U.S. services exports. The U.S.-China Tourism Leadership Summit—which is being hosted by the Ministry of Culture and Tourism of the PRC in coordination with the U.S. Department of Commerce and Brand USA —represents a significant milestone in bilateral cooperation and exchange in the travel and tourism sector.  Assistant Secretary Harris is the most senior official to lead the U.S. delegation in the history of U.S.-China travel and tourism summits, further demonstrating the Biden-Harris Administration’s commitment to the growth and vitality of the travel and tourism sector.

The National Travel and Tourism Office sits within the Industry and Analysis business unit in the International Trade Administration at the Department of Commerce.  For more information on the federal government’s National Travel and Tourism Strategy or official U.S. travel and tourism statistics and research programs, please visit: https://www.trade.gov/national-travel-and-tourism-office.

About the International Trade Administration The International Trade Administration (ITA) at the U.S. Department of Commerce is the premier government resource for American companies competing in the global marketplace. Operating in more than 100 U.S. locations and 80 markets worldwide, ITA promotes trade and investment, assists U.S. businesses and workers to export and expand globally, and ensures fair trade and compliance by enforcing U.S. trade laws and agreements. For more information on ITA, visit www.trade.gov .

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UNWTO Looks to “Re-Write Tourism History” at Official Re-Opening of China

• Asia and the Pacific
• 24 Feb 2023

UNWTO has heralded the re-opening of China as ‘the final piece in tourism’s recovery’ from the biggest crisis in the sector’s history.

Leading a high-level delegation to the city of Hangzhou to join in the official re-opening, UNWTO Secretary-General Zurab Pololikashvili, warmly welcomed the lifting of travel restrictions as a major boost to economic growth and social opportunity both in Asia and the Pacific and globally. According to UNWTO data, the pandemic cost destinations worldwide a combined US$270 billion in Chinese outbound tourist spending in 2020 and 2021 alone. The re-opening of borders therefore represents “ the moment the world has been waiting for ”, Mr Pololikashvili noted.

The UNWTO Secretary-General is the first UN Head of Agency to visit China since restrictions were lifted. China’s Minister of Culture and Tourism Hu Heping welcomed UNWTO’s support throughout the pandemic and for joining the official re-opening celebrations. In a bilateral meeting, Minister Hu Heping and Secretary-General Pololikashvili agreed to further deepen their collaboration around positioning tourism on the agenda for international development cooperation and in the key areas of tourism education and tourism for rural development.

According to UNWTO data, China grew to be the biggest tourism source market in the world prior to the pandemic. In 2019, Chinese tourists spent a collective US$255 billion on international travel, while domestic tourism served as a pillar of growth and employment, with more than 6 billion trips that year alone, supporting jobs and businesses across the country.

Tourism for rural development

Reflecting UNWTO’s work to make tourism a driving force of rural development, the high-level delegation was welcomed to Yucun, one of four Chinese destinations to be recognized among the ‘ Best Tourism Villages by UNWTO ’. The village was awarded the recognition for its commitment to making tourism a source of local opportunity, in addition to its commitment to eco-friendly tourism and pioneering approach to waste management at the destination-level.

Public and private sectors re-think tourism

UNWTO was welcomed as a partner of the Xianghu Dialogue, organized by the World Tourism Alliance (WTA) in the city of Hangzhou. Held around the theme of “A New Paradigm for a New Tourism”, the event brought together public and private sector leaders to re-think the sector’s future around the key priorities of sustainability, equality and resilience.

Key topics addressed over the two days included promoting collaborative tourism development amongst countries and regions, international cooperation and poverty reduction through tourism, smart connectivity, destination management and planning, and innovation and new business models. The UNWTO delegation met with private sector leaders, including from the Chinese global technology company Alibaba, which is headquartered in Hangzhou.

China as key tourism partner

In the past year, China has established itself as a leading supporter of UNWTO in several core priority areas. These include Nature Positive Tourism, which UNWTO placed on the agenda of the United Nations Biodiversity Conference (COP15), for which China served as President.

UNWTO will return to China in September for the Global Tourism Economy Forum (GTEF), to be held in Macau. The tenth edition of the Forum will again provide a platform for governments, business leaders, experts, and academics to advance shared plans for the sustainable development of tourism.

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The first edition of China Documentary Festival, jointly organized by China Media Group and China's Ministry of Culture and Tourism, kicked off on June 21 in Beijing. Over 50 documentaries and feature films produced by CGTN in English, Spanish, French, Arabic and Russian languages, including many award-winning works, will be showcased across hundreds of media platforms around the world.

Hu Heping, Minister of Culture and Tourism, said in his speech that the global screening of the China Documentary Festival aims to enhance mutual understanding, promote interpersonal connections and deepen friendships through imagery. 

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Readout of secretary raimondo's meeting with minister of culture and tourism of the people’s republic of china hu heping, office of public affairs.

Today U.S. Secretary of Commerce Gina Raimondo met with Minister of Culture and Tourism of the People’s Republic of China Hu Heping. During the meeting, Secretary Raimondo underscored the importance of people-to-people exchange to the broader U.S.-China bilateral relationship. Secretary Raimondo also noted the positive efforts made by the Department of Commerce and Ministry of Culture and Tourism to restore the United States as an approved destination for Chinese group travel, which will create jobs and grow the economies of both countries, and foster better understanding between the people and cultures of the two nations. 

In the meeting, Secretary Raimondo and Minister Hu agreed to hold the 14th China-U.S. Tourism Leadership Summit in China in the first half of 2024, aiming to further revive and develop tourism cooperation between the two countries. 

Outlook for China tourism 2023: Light at the end of the tunnel

China is now removing travel restrictions rapidly, both domestically and internationally. While the sudden opening may lead to uncertainty and hesitancy to travel in the short term, Chinese tourists still express a strong desire to travel. And the recent removal of quarantine requirements in January 2023 could usher in a renewed demand for trips abroad.

Domestically, there are already signs of strong travel recovery. The recent Chinese New Year holidays saw 308 million domestic trips, generating almost RMB 376 billion in tourism revenue. 1 China’s Ministry of Culture and Tourism. This upswing indicates that domestic travel volume has recovered to 90 percent of 2019 figures, and spending has bounced back to around 70 percent of pre-pandemic levels. 2 McKinsey analysis based on China’s Ministry of Culture and Tourism data.

This article paints a picture of Chinese travelers and their evolving spending behaviors and preferences—and suggests measures that tourism service providers and destinations could take to prepare for their imminent return. The analyses draw on the findings of McKinsey’s latest Survey of Chinese Tourist Attitudes, and compare the results across six waves of surveys conducted between April 2020 and November 2022, along with consumer sentiment research and recent travel data.

From pandemic to endemic

By January 8, 2023, cross-city travel restrictions, border closures, and quarantine requirements on international arrivals to China had been lifted. 3 “Graphics: China’s 20 new measures for optimizing COVID-19 response,” CGTN, November 15, 2022; “COVID-19 response further optimized with 10 new measures,” China Services Info, December 8, 2022; “China reopens borders in final farewell to zero-COVID,” Reuters, January 8, 2023. This rapid removal of domestic travel restrictions, and an increase in COVID-19 infection rates, likely knocked travel confidence for cross-city and within-city trips. Right after the first easing of measures, in-city transport saw a marked drop as people stayed home—either because they were ill, or to avoid exposure. Subway traffic in ten major cities in mainland China fell and then spiked during Chinese New Year in February. Hotel room bookings also peaked at this time.

Domestic airline seat capacity experienced a minor rebound as each set of restrictions was lifted—suggesting a rise in demand as airlines scheduled more flights. Domestic capacity fluctuated, possibly due to the accelerated COVID-19 infection rate and a temporary labor shortage. International seat capacity, however, continued to climb (Exhibit 1).

By Chinese new year, China was past its infection peak—and domestic tourism recovered strongly. For instance, Hainan drew 6.4 million visitors over Chinese New Year (up from 5.8 million in 2019) and visits to Shanghai reached 10 million (roughly double 2019 holiday figures). 4 China’s Ministry of Culture and Tourism. Overall, revenue per available room (RevPAR) during this period recovered and surpassed pre-pandemic levels, at 120 percent of 2019 figures. 5 STR data. Outbound trips are still limited, but given the pent-up demand for international travel (and the upswing in domestic tourism) the tourism industry may need to prepare to welcome back Chinese tourists.

Tourism players should be ready for this; the time to act is now.

A demand boom is around the corner—Chinese tourists are returning soon

Before the pandemic, Chinese tourists were eager travelers. Mainland China had the largest outbound travel market in the world, both in number of trips and total spend. 6 World Tourism Organization (UNWTO) Tourism dashboard, Outbound tourism ranking. In 2019, Mainland Chinese tourists took 155 million outbound trips, totaling $255 billion in travel spending. 7 China’s Ministry of Culture and Tourism. These figures indicate total outbound trips, including to Hong Kong and Macau. China is also an important source market for some major destinations. For instance, Chinese travelers made up 28 percent of inbound tourism in Thailand, 30 percent in Japan, and 16 percent of non-EU visitors to Germany. 8 United Nations World Tourism Organization (UNWTO) database.

Leisure travel was the biggest driver of China’s outbound travel, representing 65 percent of travelers in 2019. In the same year, 29 percent of travelers ventured out for business, and 6 percent journeyed to visit friends and relatives. 9 Euromonitor International database.

Our most recent Survey of Chinese Tourist Attitudes, conducted in November 2022, shows that Chinese tourists have retained their keen desire to explore international destinations. About 40 percent of respondents reported that they expect to undertake outbound travel for their next leisure trip.

Where do these travelers want to go?

The results also indicate that the top three overseas travel destinations (beyond Hong Kong and Macau) are Australia/New Zealand, Southeast Asia, and Japan. Overall, respondents show less interest in travel to Europe than in previous years, down from 7 percent to 4 percent compared to wave 5 respondents. Desire to embark on long-haul international trips to Australia/New Zealand increased from 5 percent to 7 percent, and North American trips from 3 percent to 4 percent since the last survey. The wealthier segment (monthly household income over RMB 38,000) still shows a high interest in EU destinations (13 percent).

There are stumbling blocks on the road to recovery

While travel sentiment is strong, other factors may deter travelers from taking to the skies: fear of COVID-19; the need for COVID-19 testing which can be expensive; ticket prices; risk appetite of destination countries; and getting a passport or visa.

Chinese travelers may favor domestic trips, even if all outbound travel restrictions are removed, until they feel it is safe to travel internationally. A COVID-19-safe environment in destination countries will likely boost travelers’ confidence and encourage them to book trips again. 10 “Long-haul travel barometer,” European Travel Commission, February 1, 2023.

Travel recovery is also dependent on airline capacity. Some international airlines might be slow to restore capacity as fleets were retired during COVID-19 and airlines face a shortage of crew, particularly pilots. Considering that at the time of writing, in April 2023, international airline seat capacity has only recovered to around 37 percent of pre-pandemic levels, travelers are likely to face elevated ticket prices in the coming months. For instance, ticket prices for travel in the upcoming holidays to popular overseas destinations such as Japan and Thailand are double what they were in 2019. 11 Based on Ctrip prices. Price-sensitive travelers might wait for ticket prices to level out before booking their overseas trips.

Chinese airlines, however, appear more ready to resume full service than their international counterparts —fewer pilots left the industry and aircraft are available. Chinese carriers’ widebody fleets are mostly in service or ready to be redeployed (Exhibit 2).

Moving forward, safety measures in destination countries will affect travel recovery. Most countries have dropped testing requirements on arrivals from mainland China, and Chinese outbound group travel has resumed but is still limited to selected countries.

Many Chinese travelers—maybe 20 percent—have had passports expire during the COVID-19 period, and China has not been renewing these passports. Renewals are now possible, but the backlog will slow travel’s rebound by a few months. 12 Steve Saxon, “ What to expect from China’s travel rebound ,” McKinsey, January 25, 2023. Furthermore, travel visas for destination countries can take some time to be processed and issued.

Taken together, these factors suggest that the returning wave of Chinese travelers may only gather momentum by the Summer of 2023 and that China’s travel recovery will likely lag Hong Kong’s by a few months.

Overall, China is opening up to travel, both inbound and outbound—all types of visas are being issued to foreign visitors, and locals are getting ready to travel abroad. 13 “China to resume issuing all types of visas for foreigners,” China Briefing, March 14, 2023.

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The returning chinese traveler is evolving.

Although Chinese travelers did not have opportunities to travel internationally over the past three years, they continued to travel domestically and explore new offerings. Annual domestic trips remained at around 50 percent of pre-pandemic levels, amounting to 8.7 billion domestic trips over the past three years. 14 China’s Ministry of Culture and Tourism. During this time, the domestic market matured, and travelers became more sophisticated as they tried new leisure experiences such as beach resorts, skiing trips, and “staycations” in home cities. Chinese travelers became more experienced as thanks to periods of low COVID-19 infection rates domestically they explored China’s vast geography and diverse experiences on offer.

Consequently, the post-COVID-19 Chinese traveler is even more digitally savvy, has high expectations, and seeks novel experiences. These are some of the characteristics of a typical traveler:

• Experience-oriented: Wave 6 of the survey shows that the rebound tourist is planning their trip around experiences. Outdoor and scenic trips remain the most popular travel theme. In survey waves 1 to 3, sightseeing and “foodie” experiences were high on the list of preferences while traveling. From waves 4 to 6, culture and history, beaches and resorts, and health and wellness gained more attention—solidifying the trend for experience-driven travel. Additionally, possibly due to the hype of the Winter Olympics, skiing and snowboarding have become popular activities.
• Hyper-digitized: While digitization is a global trend, Chinese consumers are some of the most digitally savvy in the world; mobile technologies and social media are at the core of daily life. COVID-19 drove people to spend more time online—now short-form videos and livestreaming have become the top online entertainment options in China. In the first half of 2022, Chinese consumers spent 30 percent of their mobile internet time engaging with short videos. 15 “In the first half of the year, the number of mobile netizens increased, and short videos accounted for nearly 30% of the total time spent online,” Chinadaily.com, 27 July 2022.
• Exploration enthusiasts: Chinese travelers are also keen to explore the world and embark on novel experiences in unfamiliar destinations. Survey respondents were looking forward to visiting new attractions, even when travel policies limited their travel radius. Instead of revisiting destinations, 45 percent of respondents picked short trips to new sites as their number one choice, followed by long trips to new sites as their second choice.

Consumers are optimistic, and travel spending remains resilient

McKinsey’s 2022 research on Chinese consumer sentiment shows that although economic optimism is seeing a global decline, 49 percent of Chinese respondents reported that they are optimistic about their country’s economic recovery. Optimism had dropped by 6 percentage points since an earlier iteration of the survey, but Chinese consumers continue to be more optimistic than other surveyed countries, apart from India (80 percent optimistic) and Indonesia (73 percent optimistic) (Exhibit 3). 16 “ Survey: Chinese consumer sentiment during the coronavirus crisis ,” McKinsey, October 13, 2022.

Chinese consumers are still keen to spend on travel, and travel spending is expected to be resilient. Wave 6 of the tourist attitude survey saw 87 percent of respondents claiming that they will spend more or maintain their level of travel spending. Moreover, when consumers were asked “which categories do you intend to splurge/treat yourself to,” travel ranked second, with 29 percent of respondents preferring travel over other categories. 17 “ Survey: Chinese consumer sentiment during the coronavirus crisis ,” McKinsey, October 13, 2022.

Against this context of consumer optimism, the wave 6 tourist attitude survey results shed light on how travelers plan to spend, and which segments are likely to spend more than others:

• The wealthier segment and older age groups (age 45-65) show the most resilience in terms of travel spend. Around 45 to 50 percent of travelers in these two groups will spend more on their next leisure trip.
• The wealthier segment has shown the most interest in beach and resort trips (48 percent). Instead of celebrating Chinese New Year at home with family, 30 percent of Chinese travelers in the senior age group (age 55-65) expect to take their next leisure trip during this holiday—10 percent more than the total average. And the top three trip preferences for senior travelers are culture, sightseeing, and health-themed trips.
• When it comes to where travelers plan to spend their money on their next trip, entertainment activities, food, and shopping are the most popular categories. These are also the most flexible and variable spending categories, and there are opportunities to up-sell—attractions, food and beverage, and retail players are well positioned to create unique and unexpected offerings to stimulate spending in this area (Exhibit 4).

Independent accommodation is gaining popularity

Overall, Chinese consumers have high expectations for products and services. McKinsey’s 2023 consumer report found that local brands are on the rise and consumers are choosing local products for their quality, not just for their cheaper prices. Chinese consumers are becoming savvier, and tap into online resources and social media to educate themselves about the specific details and features of product offerings. 18 Daniel Zipser, Daniel Hui, Jia Zhou, and Cherie Zhang, 2023 McKinsey China Consumer Report , McKinsey, December 2022.

Furthermore, 49 percent of Chinese consumers believe that domestic brands are of “better quality” than foreign brands—only 23 percent believe the converse is true. Functionality extended its lead as the most important criterion influencing Chinese consumers, indicating that consumers are focusing more on the functional aspects of products, and less on emotional factors. Branding thus has less influence on purchasing decisions. 19 Daniel Zipser, Daniel Hui, Jia Zhou, and Cherie Zhang, 2023 McKinsey China Consumer Report , McKinsey, December 2022.

These broader consumer sentiments are echoed in the travel sector. Chinese travelers pay attention to cost, but do not simply seek out the lowest prices. While 17 percent of wave 6 respondents are concerned about low prices, 33 percent are on the hunt for value-for-money offerings, and 30 percent prefer good discounts and worthwhile deals.

And consumer sentiment regarding local brands holds true for travel preferences. Independent travel accommodation continues to be the preferred choice for most respondents, increasing in share against international chain brand hotels (Exhibit 5). Almost 60 percent of respondents prefer independent accommodation such as boutique hotels, B&Bs, and Airbnb—an 8 percentage-point increase since 2020.

Local chain brand hotels remain stable, the favored accommodation for 20 percent of respondents. These hotels are seen as a more standardized option, and as most are located in urban areas, they target the budget traveler segment.

Opting for independent accommodation is not considered a trade down; Chinese travelers expect a high level of service. In particular, respondents in the wealthier segment picked independent options (57 percent) over international premium brands (27 percent).

Premium independent options for the wealthier segment are abundant, specifically in leisure travel. Setting up a premium brand hotel requires long-term construction periods and heavy capital investment. Small-scale boutique hotels or B&Bs, on the other hand, are more agile solutions that can ramp up in the short term. This may explain the abundance of premium independent offerings. For instance, in destinations such as Lijiang and Yangshuo, between seven and nine of the top-ten premium hotels listed on Ctrip are independent boutique hotels.

Premium independent accommodation’s strength lies in quality guest experience with a genuine human touch. The service level at premium independent establishments can even surpass that of chain brand accommodation thanks to the high staff-to-room ratio, which easily reaches 3:1 or even 5:1. 20 “Strategic marketing analysis of boutique hotels,” Travel Daily , June 3, 2015. For hotels in Xiamen, Lijiang, and Yangshou, Ctrip service ratings of premium independent hotels are all above 4.7, outperforming international chain brand hotels.

Travelers are becoming smarter and more realistic during hotel selection, focusing on fundamental offerings such as local features and value for money. Across all types of hotels, local features are one of the most important factors influencing hotel selection—even for chain brand hotels which have a reputation for mastering the standardized offering. On average, 34 percent of respondents report that local features and cultural elements are the key considerations affecting their choice of hotel.

Outbound Chinese tourists are evolving rapidly, becoming increasingly diverse in their travel preferences, behaviors, and spending patterns. Chinese travelers are not homogeneous, and their needs and preferences continue to evolve. Therefore, serving each group of tourists may require different product offerings, sales channels, or marketing techniques.

The path toward eco-friendly travel in China

How international travel and tourism can attract outbound chinese travelers.

China’s lifting of travel restrictions may cause some uncertainty in the short term, but a promising recovery lies ahead. Chinese tourists have maintained a strong desire to travel internationally and are willing to pay for this experience. They are also discerning and looking for high-quality accommodation, offerings, and service. As boutique hotels are becoming more popular, international hotel brands hotels could, for example, aim to stand out by leveraging their experience in service excellence.

With renewed travel demand, now may be the time for international travel and tourism businesses to invest in polishing product offerings—on an infrastructural and service level. Tourism, food and beverage, retail, and entertainment providers can start preparing for the rebound by providing unique and innovative experiences that entice the adventurous Chinese traveler.

Craft an authentically local offering that appeals to experience-driven Chinese travelers

Chinese travelers have suspended overseas trips for three years, and are now looking to enjoy high-quality experiences in destinations they have been to before. They also want to do more than shopping and sightseeing, and have expressed willingness to spend on offerings geared towards entertainment and experience. This includes activities like theme parks, snow sports, water sports, shows, and cultural activities. Authentic experiences can satisfy their desire for an immersive foreign experience, but they often want the experience to be familiar and accessible.

Designing the right product means tapping into deep customer insights to craft offerings that are accessible for Chinese travelers, within a comfortable and familiar setting, yet are still authentic and exciting.

Travel and tourism providers may also have opportunities to up-sell or cross-sell experiences and entertainment offerings.

Social media is essential

Social media is emerging as one of the most important sources of inspiration for travel. Short video now is a major influence channel across all age groups and types of consumers.

Tourist destinations have begun to leverage social media, and short video campaigns, to maximize exposure. For example, Tourism Australia recently launched a video campaign with a kangaroo character on TikTok, and overall views soon reached around 1.67 billion.

The story of Ding Zhen, a young herder from a village in Sichuan province, illustrates the power of online video in China. In 2020, a seven-second video of Ding Zhen turned him into an overnight media sensation. Soon after, he was approached to become a tourism ambassador for Litang county in Sichuan—and local tourism flourished. 21 “Tibetan herder goes viral, draws attention to his hometown in SW China,” Xinhuanet, December 11, 2020. Another Sichuan local, the director of the Culture and Tourism Bureau in Ganzi, has drawn visitors to the region through his popular cosplay videos that generated 7 million reviews. Building on the strength of these influential celebrities, visitor numbers to the region were said to reach 35 million, more than two-and-a-half times 2016 volumes. 22 “Local official promoting Sichuan tourism goes viral on internet,” China Daily, June 17, 2022; “The Director of Culture and Tourism disguises himself as a “Swordsman” knight to promote Ganzi tourism,” Travel Daily , June 17, 2022.

Online travel companies are also using social media to reach consumers. Early in the pandemic, Trip.com took advantage of the upward trend in livestreaming. The company’s co-founder and chairman of the board, James Liang, hosted weekly livestreams where he dressed up in costume or chatted to guests at various destinations. Between March and October 2020, Liang’s livestreams sold around $294 million’s worth of travel packages and hotel room reservations. 23 “Travel companies adapt to a livestreaming trend that may outlast the pandemic,” Skift, October 26, 2020.

Livestreaming is being used by tourism boards, too. For instance, the Tourism Authority of Thailand (TAT) collaborated with Trip.com to launch a new campaign to attract Chinese tourists to Thailand as cross-border travel resumed. The broadcast, joined by TAT Governor Mr Yuthasak Supasorn, recorded sales of more than 20,000 room nights amounting to a gross merchandise value of over RMB 40 million. 24 “Trip.com Group sees border reopening surge in travel bookings boosted by Lunar New Year demand,” Trip.com, January 13, 2023.

International tourism providers looking to engage Chinese travelers should keep an eye on social media channels and fully leverage key opinion leaders.

Scale with the right channel partners

Travel distribution in China has evolved into a complex, fragmented, and Chinese-dominated ecosystem, making scaling an increasingly difficult task. Travel companies need to understand the key characteristics of each channel type, including online travel agencies (OTAs), online travel portals (OTPs), and traditional travel agencies as each target different customer segments, and offer different levels of control to brands. It also takes different sets of capabilities to manage each type of distribution channel.

Travel companies can prioritize the channels they wish to use and set clear roles for each. One challenge when choosing the right channel partner is to avoid ultra-low prices that may encourage volume, but could ultimately damage a brand.

Meanwhile, given the evolution of the postCOVID-19 industry landscape and rapid shifts in consumer demand, travel companies should consider direct-to-consumer (D2C) channels. The first step would be selecting the appropriate D2C positioning and strategy, according to the company’s needs. In China, D2C is a complicated market involving both public domains (such as social media and OTA platforms) and private domains (such as official brand platforms). To make the most of D2C, travel companies need a clear value proposition for their D2C strategy, whether it be focused on branding or on commercial/sales.

Create a seamless travel experience for the digitally savvy Chinese tourist

China has one of the most digitally advanced lifestyles on the planet. Chinese travelers are mobile-driven, wallet-less, and impatient—and frequently feel “digitally homesick” while abroad. Overseas destinations and tourism service providers could “spoil” tech-savvy Chinese travelers with digitally enhanced service.

China’s internet giants can provide a shortcut to getting digital services off the ground. Rather than building digital capabilities from scratch, foreign tourism providers could engage Chinese travelers through a platform that is already being used daily. For example, Amsterdam’s Schiphol Airport provides a WeChat Mini Program with four modules: duty-free shopping, flight inquiry, information transfer, and travel planning. This contains information about all aspects of the airport, including ground transportation and tax refund procedures.

Alibaba’s Alipay, a third-party mobile and online payment platform, is also innovating in this space. The service provider has cooperated with various tax refund agencies, such as Global Blue, to enable a seamless digitized tax refund experience. Travelers scan completed tax refund forms at automated kiosks in the airport, and within a few hours, the refunded amount is transferred directly to their Alipay accounts. 25 “Alipay and Global Blue to make tax refunds easy for Chinese tourists,” Alizila, June 23, 2014.

Such digital applications are likely to be the norm going forward, not a differentiator, so travel companies that do not invest in this area may be left behind.

Chinese travelers are on the cusp of returning in full force, and tourism providers can start preparing now

With China’s quarantine requirements falling away at the start of 2023, travelers are planning trips, renewing passports and visas, and readying themselves for a comeback. Chinese tourists have not lost their appetite for travel, and a boom in travel demand can be expected soon. Though airlines are slow to restore capacity, and some destination countries are more risk averse when welcoming Chinese travelers, there are still options for Chinese tourists to explore destinations abroad.

Tourism providers can expect to welcome travelers with diverse interests who are willing to spend money on travel, who are seeking out exciting experiences, and who are choosing high-quality products and services. The returning Chinese traveler is digitally savvy and favors functionality over branding—trends suggest that providers who can craft authentic, seamless, and unique offerings could be well positioned to capture this market.

Guang Chen and Jackey Yu are partners in McKinsey’s Hong Kong office, Zi Chen is a capabilities and insights specialist in the Shanghai office, and Steve Saxon is a partner in the Shenzhen office.

The authors wish to thank Cherie Zhang, Glenn Leibowitz, Na Lei, and Monique Wu for their contributions to this article.

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Rao Quan, Vice Minister of Culture and Tourism of China, Addresses the Opening Ceremony of the World Conference on Tourism Cooperation and Development 2022

The World Conference on Tourism Cooperation and Development 2022, hosted by the World Tourism Cities Federation (WTCF), opened at the China National Convention Center in Beijing on 1 September. Rao Quan, Vice Minister of Culture and Tourism of China, attended the conference and delivered a speech. He noted that with the theme of "Deepening Cooperation and Innovation for Development", the conference highlights the significance in countries joining hands and seeking common development.

Publish Time： 2022-09-03 19:31:00 Source： WTCF

Rao Quan, Vice Minister of Culture and Tourism of China

Since 2020, the global spread of COVID-19 has dealt a serious blow to the development of the world tourism industry, but "the huge potential of the tourism market has not changed, and the general trend of industry development has not changed". Rao Quan said that tackling the epidemic and restoring development remained the common focus of the global tourism industry at present and in the coming period. The Chinese government attaches great importance to the high-quality development of tourism. It has launched a series of policy measures, formulated and implemented the 14th Five-Year Plan for Tourism Development, and defined the path of tourism development in the new era.

"We are committed to the principle that tourism serves the people and benefits the people. We have enriched the supply of high-quality tourism products and services, improved public tourism facilities and taken more measures to benefit people and better meet their consumption needs in the era of mass tourism. We have adapted to the general trend of informatization, accelerated the promotion of smart tourism characterized by digitalization, networking and intelligence, and promoted the concept of 'Migrating to Cloud, Using Digital Tools and Enabling Intelligence' in tourism development. We practice the vision of 'lucid waters and lush mountains are invaluable assets', explore and develop green tourism that is resource-intensive, eco-friendly, energy-efficient and low-carbon, and shared by both residents and tourists, in a bid to achieve the integration of ecological protection, green development and tourism growth. We advocate civilized tourism, strive to improve the civility of tourism practitioners, raise citizens' awareness of civilized travel, and promote the new trend of civilized, healthy and green tourism." Rao Quan further pointed out that the Chinese government has coordinated pandemic prevention and control and enhanced the recovery and development of the tourism industry, with a targeted and comprehensive effort to strengthen market confidence and resolve for the recovery and development of the tourism industry.

Rao Quan said in his speech that the Ministry of Culture and Tourism of China is willing to work with tourism authorities and industry practitioners of other countries in experience sharing, consensus building and deeper cooperation, in a bid to lead the tourism industry to overcome the difficulties brought by the epidemic at an early date and achieve high-quality development. To this end, he put forward three proposals. First, it is essential to deepen cooperation for development. This requires enhancing mutually beneficial and win-win cooperation and seeking common development. It is necessary to deepen cooperation in the field of tourism, innovate mechanisms and improve quality, create opportunities in opening up and solve problems in cooperation, and jointly explore the path to the recovery and development of world tourism. 

Second, policies should be refined to support development. High-quality development requires us to continuously upgrade modernization of the industry and supply chains of tourism, optimize the business environment, roll out effective policy measures, stimulate the vitality of tourism market entities with policies as the support and supply as the growth engine, and boost more efficient, equitable, sustainable and safety-based development of tourism. 

Third, promote development through innovation. Rao Quan proposed an initiative to take the improvement of innovation capacity as the strategic basis, lead the market by integrating resources through innovation, seek efficiency and impetus from innovation, accelerate the promotion of innovation in tourism development concepts, business forms, services, models and management modes, foster new growth drivers and open up new space for development.

At the end of his speech, Rao Quan called on international organizations in the field of tourism to continue to build high-level exchange and cooperation platforms, and tourism authorities and industry practitioners from various countries to carry out in-depth exchanges and cooperation, and strive for a common goal of high-quality development of global tourism.

China Lifts Bans on Group Tours to US, Japan and Other Key Markets

FILE PHOTO: Travellers walk past an installation in the shape of five stars, at Beijing Daxing International Airport in Beijing, China April 24, 2023. REUTERS/Tingshu Wang/file photo

By Casey Hall, Sophie Yu and Joyce Lee

BEIJING (Reuters) -China has lifted pandemic-era restrictions on group tours for more countries, including key markets such as the United States, Japan, South Korea and Australia in a potential boon for their tourism industries.

The decision was announced by China's culture and tourism ministry on Thursday, effective immediately.

Prior to the pandemic, mainland Chinese tourists spent more than any other country's tourists when abroad, clocking up a combined $255 billion in 2019 with group tours estimated to account for roughly 60% of that.

Their absence since the pandemic has led to financial troubles for many tourism-dependent businesses around the globe.

U.S. Commerce Secretary Gina Raimondo described the step as "a significant win" for the U.S. tourism industry and said it was the result of "months of hard work" between the U.S. Commerce Department and the Chinese culture and tourism ministry.

Germany and Britain were also among the countries for which restrictions were lifted but Canada, which has had especially politically fraught relations with China of late, was not reinstated.

It was China's third list of countries to receive approvals. The first batch approved in January included 20 countries such as Thailand, Russia, Cuba and Argentina. The second batch in March included 40 countries, among them Nepal, France, Portugal and Brazil.

China has never explained its staggered approach to approvals but analysts have noted that the countries taking time to gain approval have had more political and/or trade tension with the world's second-largest economy.

The move was also welcomed by Japanese Prime Minister Fumio Kishida as well as tourism ministers in South Korea and Australia, who said it would boost their economies.

"This is another positive step towards the stabilisation of our relationship with China," said Australian Trade and Tourism Minister Don Farrell.

Just how much outbound Chinese tourism will bounce back for the latest group of countries remains to be seen. Expectations that demand would come roaring back after borders were re-opened have to date been largely unfulfilled.

International flights in and out of China have recovered to only 53% of 2019 levels as of July.

That is in large part due to staffing issues for many global airlines that have limited the flying of more routes, slow visa issuance for Chinese travellers amid backlogs in many Western countries, and a sputtering domestic economy that is discouraging many holidaying Chinese from spending big.

In response to the news, some Chinese said online that they were less than enthusiastic about international trips.

"I don't want to go; I feel domestic travel is pretty good, such as the beautiful scenery in Xinjiang and the Northeast and the food is cheap," said one Weibo user with the handle @Chongshengshilangbushilang.

But others were more upbeat.

"Despite a cooling overall economy, 40% of (Chinese) people say they will spend more on travel," said Steve Saxon, a partner at McKinsey & Co. "People want to spend the money they've saved during COVID on international travel."

Trip.com, China's largest travel agency, noted that the news had led to a spike in searches for destinations including Australia and Japan. Those countries, along with several other Asian nations and the United States, are among the most visited by Chinese travelers.

"The opening of group travel from China to the U.S. is a significant milestone," said Adam Burke, head of the Los Angeles Tourism and Convention Board. "It's impossible to overstate the importance of Chinese tourism to Los Angeles."

Shares in firms in the latest group of countries with large exposure to Chinese travel demand jumped on the news. Gains for South Korean casino operators were particularly striking, with Grand Korea Leisure and Paradise surging 20% and 18% respectively on Thursday.

Two sources in South Korea's travel industry told Reuters it was the first time group tours from China would be allowed on a large scale since a 2016 dispute over Seoul's deployment of a U.S. missile defence system. China has never publicly acknowledged limiting group tours to South Korea.

(Reporting by Casey Hall in Shanghai, Sophie Yu in Beijing and Joyce Lee in Seoul; Additional reporting by the Beijing newsroom, Kanishka Singh and David Shepardson in Washington and Doyinsola Oladipo in New York; Editing by Jamie Freed, Edwina Gibbs and Andy Sullivan)

Copyright 2023 Thomson Reuters .

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BEIJING – The Standing Committee of the 14th National People's Congress , China's top legislature, concluded its seventh session on Friday in the capital, Beijing.

At the closing meeting, lawmakers adopted a decision to appoint Dong Jun as defense minister, to remove Tang Dengjie from the post of minister of civil affairs and appoint Lu Zhiyuan to the position, and remove Hu Heping from the post of minister of culture and tourism and appoint Sun Yeli to the position.

They also voted to adopt a revised Company Law, a food security law, Amendment XII to the Criminal Law, and a decision to amend the Charity Law.

READ MORE:  China's top legislature passes new law to fight bribery

President Xi Jinping signed five presidential orders to promulgate the laws and the decisions.

Zhao Leji, chairman of the NPC Standing Committee, presided over the closing meeting. 

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Xinhua | December 14, 2023

China's tourism market experienced a remarkable surge during the first three quarters of this year, a senior cultural and tourism official said Thursday.

Domestic tourism recorded 3.67 billion visits and a staggering revenue of 3.7 trillion yuan (about 520.47 billion U.S. dollars) during the period, representing year-on-year increases of 75 percent and 114 percent, respectively, figures from the Ministry of Culture and Tourism (MCT) showed.

Du Jiang, vice minister of culture and tourism, said an increased desire for travel among residents this year had significantly propelled domestic tourism.

"This surge not only stimulated increased consumer spending in the sector but also played a role in driving economic recovery," Du told a press conference.

The ministry actively promoted new tourism products featuring camping, ice and snow, sports, and others to cater to the diverse tourism preferences of the public, Du said, adding that a variety of themed travel routes were also crafted for tourists.

The ministry is formulating a three-year plan to boost inbound travel, aiming to provide tourists visiting China with tourism products of higher quality and more convenient services, he added.

Speaking at the press conference, Lu Yingchuan, vice minister of culture and tourism, said that Chinese travel agencies and online travel companies have been allowed to resume outbound group tourism services to 138 countries to facilitate the recovery of outbound tourism.

ROBUST PERFORMANCE MARKET

Lu told the press conference that China's performance market is also gaining steam, with the number of revenue-generating performance events in the first three quarters of 2023 surpassing the pre-pandemic level.

During the period, 342,000 such performances were held nationwide, up 121 percent from the same period in 2019, said Lu.

He added that these performances generated revenues of 31.54 billion yuan and attracted 111 million audiences, representing a growth of 84.2 percent and 188.5 percent, respectively, compared to the same period in 2019.

Lots of Chinese theatrical productions, either newly created or restaged, were well received by audiences, he noted, citing spotlighted performances such as the dance drama "Wing Chun," Yue Opera "New Dragon Gate Inn," and Kunqu Opera "The Peony Pavilion."

He added that the ministry will continue implementing mechanisms and policies in talent cultivation, international communication, and theatrical creation, thus presenting the audience with more high-quality productions.

GOING DIGITAL

At the press conference, Lu also highlighted the role of cultural digitalization, which is a crucial step in promoting the high-quality development of the cultural sector.

MCT figures show that about 900,000 pieces and sets of cultural relics at the Palace Museum have undergone digitalization, constituting 48 percent of its total collections; among the 1.43 million sets of collections at the National Museum of China, 700,000 sets have been digitally processed.

Lu said promoting the digitalization of such resources lays a solid foundation for better utilization and presentation.

The country has also redoubled efforts to provide digital content in public cultural services, including projects for building a smart library system and public culture cloud platforms, according to Lu.

The MCT pledged to formulate supporting policies and regulations, including those related to market regulation and intellectual property protection, to facilitate the sound digitalization of the sector.

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14th u.s.-china tourism leadership summit paves way for increased travel.

XI'AN, China , May 22, 2024 /PRNewswire/ -- Brand USA , the destination marketing organization for the United States , joined by the U.S. Department of Commerce and the Ministry of Culture and Tourism of the People's Republic of China , hosted the 14th U.S.–China Tourism Leadership Summit in Xi'an, China , from May 21-23, 2024 . The event brought together government and travel industry leaders from the United States and China to foster the return of Chinese visitors to the United States .

Brand USA President and CEO Chris Thompson highlighted the significance of the return of Chinese travelers for the U.S. tourism economy, "The return of Chinese visitors is critical for the U.S. tourism industry and essential for the full recovery of our economy. The 14th U.S.–China Tourism Leadership Summit plays a crucial role in revitalizing this vital market segment."

"Travel and tourism supports 9.5 million American jobs," said Assistant Secretary of Commerce for Industry and Analysis Grant T. Harris. "The U.S.-China Tourism Leadership Summit provided an important opportunity to further the Department of Commerce's mission to enhance the international competitiveness of the U.S. travel and tourism industry. Through our participation, we hope to see more Chinese visitors experience the United States , which will support jobs and economic growth in communities across the country."

The summit laid the groundwork for enhanced relations between the United States and China within the travel industry, encouraging collaboration among key stakeholders and charting a path forward for the future of tourism between the world's two largest economies. This three-day event, occurring for the first time since 2019, facilitated deeper insights into conducting business within the Chinese tourism market while providing opportunities for forging new connections with influential decision-makers.

The U.S. delegation was led by U.S. Assistant Secretary of Commerce for Industry and Analysis Grant Harris along with Brand USA's President and CEO Chris Thompson . The 75-person contingent also included high-level leaders from across the U.S. government as well as prominent tourism organizations from across the USA . The delegation included representation from the following organizations: Destination DC, Destination Niagara USA , Discover Puerto Rico, Guam Visitors Bureau, Hawaii Tourism Authority, Hilton Worldwide, International Inbound Travel Association, Los Angeles Tourism & Convention Board, Marriott International, Mastercard, New York City Tourism + Conventions, San Francisco Travel Association, Travel Oregon, Travel South USA, U.S. Travel Association, Visa, Visit California, Visit San Diego, and Visit Seattle.

"The 14th U.S.—China Tourism Leadership Summit marked a significant milestone in our efforts to strengthen the tourism bridge between our two nations. The insights and collaborations developed during this event were essential for fostering mutual understanding and economic growth. It is great to have restarted the summit and be back in this market after six years as we reunite with our colleagues from the Chinese government and travel industry," said Todd Davidson , President and CEO of Travel Oregon and chair of the Brand USA board of directors.

The Chinese delegation was led by State Councilor Yiquin Shen, Chinese Minister of Culture and Tourism, Sun Yeli , and Shaanxi Party Secretary, Zhao Yide.

On May 21 , Brand USA organized a market immersion day to orient U.S. travel industry leaders on China's business environment and macroeconomic outlook, consumer insights, trends in travel and media, and federal policy updates. This education session also brought the delegation together with the founders and leaders of many of the primary Chinese travel and social media channels.

The joint Plenary Day on May 22 began with an opening ceremony featuring speeches from Sun Yeli , Minister of Culture and Tourism of the People's Republic of China (PRC), and Grant Harris , Assistant Secretary for Industry & Analysis, who also read congratulatory letters from PRC President Xi Jinping and U.S. President Joseph R. Biden . Keynote speeches from industry leaders Chris Nassetta , President & CEO of Hilton Worldwide, and Chris Clark , Chairman for Asia Pacific at Visa Inc., set the stage for bilateral panel discussions on the future of tourism between China and the United States . More than 25 memoranda of understanding to deepen cooperation and increase travel flows were signed between U.S. and Chinese corporate and destination marketing entities.

The Chinese tourism market is significant for the global travel industry. Prior to the pandemic, China was a top-five market for visitors to the United States and the top source of international traveler spending. In 2019, nearly 80 million visitors to the U.S. spent about $235 billion , with 3 million Chinese visitors contributing $35 billion . These export revenues create quality U.S. jobs, support public services, and contribute to a positive balance of trade.

There are promising signs of recovery for Chinese visitation to the United States . Weekly flights from China are forecast to increase to 140 by the end of the year, compared to 65 in January 2024 . To capitalize on this lucrative market and build the long-term future of the international visitor economy, this month Brand USA launched a high-profile consumer marketing campaign called "Experience It All", showcasing the diverse attractions and experiences the USA offers Chinese travelers. The campaign will run during peak travel planning months for Chinese travelers and will be on a variety of trip planning, social media, and online travel agency platforms including Xiaohongshu [RED], Ctrip, Fliggy, Douyin, and a mini-program on WeChat.

About the 14 th U.S.–China Tourism Leadership Summit The 14 th U.S.–China Tourism Leadership Summit reunites government and travel industry leaders from the United States and China . The summit provides a platform for participants to develop and strengthen relationships, discuss key issues and best practices, and ultimately drive more travel between the United States and China . The summit will set the stage for the future of relations between the United States and China in the travel industry. Jointly produced by Brand USA and China's Ministry of Culture and Tourism, summit locations alternate each year between China and the United States .

About Brand USA Brand USA , the destination marketing organization for the United States , was established by the Travel Promotion Act as the nation's first public-private partnership to promote the United States as a premier travel destination and to communicate U.S. travel policies and procedures to worldwide travelers. The organization's mission is to increase international visitation to the United States in order to fuel the U.S. economy and enhance the image of the United States worldwide. Formed as the Corporation for Travel Promotion in 2010, the public-private entity began operations in May 2011 and does business as Brand USA . According to studies by Oxford Economics, over the past ten years Brand USA's marketing initiatives have helped welcome 8 million incremental visitors to the United States , benefiting the U.S. economy with more than $58 billion in total economic impact and supporting, on average, more than 37,000 incremental jobs a year.

For industry or partner information about Brand USA , visit  TheBrandUSA.com  or follow us on  Facebook ,  LinkedIn , and  X/Twitter . To discover more about the USA and the boundless diversity of American travel experiences and authentic, rich culture, please visit Brand USA's consumer website  VisitTheUSA.com ; follow Visit The USA on  Facebook ,  TikTok , and  Instagram ; and watch travel shows on  GoUSATV .

View original content: https://www.prnewswire.com/news-releases/14th-uschina-tourism-leadership-summit-paves-way-for-increased-travel-302153229.html

SOURCE Brand USA

Global Times senior reporter, mainly covers the reporting of movies, TV, music and culture news.

Wang Cong co-leads GT’s business desk. He covers China’s macroeconomic policies and global trade.

Young people from China and the US cheer at the opening ceremony of the 14th China-US Tourism Leadership Summit in Xi'an, Northwest China's Shaanxi Province on May 22, 2024. Photo: cnsphoto

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An oil depot in the Krasnodar region was on fire and people were injured after Ukraine's air strike early on Friday targeting oil facilities, the governor of the southern Russian region said.

A Chinese nonprofit group with ties to the nation's government is coordinating efforts among China's biggest technology firms to develop open-source software with military applications, a U.S.-based defense policy group says.

China denounces US-UK engagement of Taiwan shortly after election of new president

China’s Defense Ministry has denounced U.S. and U.K. affirmations of support for Taiwan’s newly elected government shortly after the island that Beijing claims sovereignty over freely chose its new leaders

TAIPEI, Taiwan — China’s Defense Ministry on Thursday denounced U.S. and U.K. affirmations of support for Taiwan’s newly elected government, shortly after the island claimed by Beijing freely chose its new leaders.

Col. Wu Qian accused the United Kingdom of pursuing a “Cold War” mentality and attempting to “instigate confrontation.”

The comments Thursday came after a a U.S. congressional delegation met with Taiwan’s new leader , Lai Ching-te, on Monday in a show of support, shortly after China held drills around Taiwan in response to his inauguration speech.

Despite their lack of formal diplomatic ties — a Cold War concession to Beijing — the United States and Taiwan remain close security, cultural and political partners. Washington is Taiwan’s biggest provider of military hardware and maintains a de facto embassy on the island to underscore their strong ties.

China regularly sends navy ships and warplanes close to Taiwan to advertise its threat to use force to annex what it declares its own territory, which it often describes as a “sacred mission.” Taiwan was only made a Chinese province in 1885, and shortly afterward, became a Japanese province for 50 years until the end of World War II. It then separated from mainland China amid civil war in 1949 and was ruled under strict martial law until the late 1980s when it began to embrace full democracy.

During the U.S. congressional visit on Monday, Rep. Andy Barr, the co-chair of the Taiwan caucus in the U.S. Congress, said the United States is fully committed to supporting Taiwan militarily, diplomatically and economically.

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“There should be no doubt, there should be no skepticism in the United States, Taiwan or anywhere in the world, of American resolve to maintain the status quo and peace in the Taiwan Strait,” the Republican from Kentucky said at a news conference after the delegation met with Lai.

Taiwan’s new foreign minister, Lin Chia-lung, noted the recent Chinese drills and called the American delegation’s visit “an important gesture of solidarity” at a critical time.

The delegation included both Republicans and Democrats and was led by Rep. Michael McCaul, the chair of the House Foreign Affairs Committee. The Texas Republican was sanctioned by China last year after he visited Taiwan in April.

The other members were Republicans Young Kim from California and Joe Wilson from South Carolina, and Democrats Jimmy Panetta from California and Chrissy Houlahan from Pennsylvania.

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G7 Finance Ministers Close Ranks as Tensions with Russia and China Fester

Western economic officials projected a united front, and braced for retaliation, as they prepped tougher sanctions and tariffs.

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By Alan Rappeport

Alan Rappeport reported from Stresa, Italy, where he is covering the G7 finance ministers meeting.

Top finance officials from the world’s advanced economies moved toward an agreement on Saturday over how to use Russia’s frozen central bank assets to aid Ukraine and warned against China’s dumping of cheap exports into their markets, aiming to marshal their economic might to tackle twin crises.

The embrace of more ambitious sanctions and protectionism came as finance ministers from the Group of 7 nations gathered for three days of meetings in Stresa, Italy. The proposals under consideration could deepen the divide between the alliance of wealthy Western economies and Russia, China and their allies, worsening a global fragmentation that has worried economists.

Efforts by the Group of 7 to influence the two powerful adversaries have had limited success in recent years, but rich countries are making a renewed push to test the limits of their combined economic power.

In a joint statement, or communiqué, released on Saturday , policymakers said they would stay united on both fronts as geopolitical crises and trade tensions have emerged as the biggest threats to the global economy.

“We are making progress in our discussions on potential avenues to bring forward the extraordinary profits stemming from immobilized Russian sovereign assets to the benefit of Ukraine,” the statement said.

Regarding China, the finance ministers expressed concern about its “comprehensive use of nonmarket policies and practices that undermines our workers, industries, and economic resilience.” They agreed to monitor the negative effects of China’s overcapacity and “consider taking steps to ensure a level playing field.”

Growing concern over how to handle Russia and China dominated the three days of meetings on the banks of Lake Maggiore. The U.S. has been pushing for a harder approach to dealing with Russia’s assets and China’s exports, while European countries have been treading more cautiously as they navigate their internal divisions.

Economic leaders spent much of their time grappling with the details of how they would proceed with unlocking the value of $300 billion in frozen Russian central bank assets to provide a longer-term stream of aid to Ukraine beginning next year.

“The key point is to ensure the right and strong and longstanding financing for the Ukrainian government,” Bruno Le Maire, the French finance minister, said on the sidelines of the meetings on Friday. “They need our support and they can rely on the united support of all G7 countries.”

By Saturday, there was growing momentum behind a U.S. proposal to use the windfall profits from those assets to create a loan for Ukraine that could be worth up to $50 billion and be backed by some Group of 7 countries.

“It really is the main option that is currently under consideration,” Treasury Secretary Janet L. Yellen said on Saturday following the meeting. “There does seem to be broad-based support for the general notion that that’s a productive way forward.”

But outstanding questions remained, including how countries would share the burden of risk associated with the loan if interest rates fall, which would erode the profits generated by the assets, and what would happen to the loan when the war eventually ends. Another complicating factor in using the assets to back a long-term loan is that the European Union sanctions authorizing the immobilization of most of those Russian assets must be regularly renewed.

The finance ministers will be racing over the next three weeks to work through the details of their options. They anticipate that Group of 7 leaders will decide how to proceed when they convene in Italy next month.

Urgency to reach an agreement has intensified as international weariness over the war has made it more difficult for the United States and Europe to continue delivering aid packages to Ukraine. Looming elections around the world, and in America in particular, have added to pressure to provide Ukraine with a stream of future funding.

“It would be nice to get this mechanism locked down, so that whatever the outcome of the U.S. election, you have $50 billion to play with,” said Charles Lichfield, a senior fellow at the Atlantic Council.

Although Russia dominated the talks, fears about the threat of China’s excess industrial capacity loomed large. Policymakers worry that a flood of heavily subsidized Chinese green energy technology products will cripple the clean energy sectors in the United States and Europe, leading to lost jobs and reliance on China for solar panels, batteries, electric vehicles and other products.

President Biden increased tariffs on some Chinese imports last week, including levying a 100 percent tax on electric vehicles, and left in place taxes on more than $300 billion worth of Chinese goods that President Donald J. Trump had imposed. This week, Ms. Yellen called on Europe and the Group of 7 to more forcefully confront China over its trade practices.

“We need to stand together and send a unified message to China so they understand it’s not just one country that feels this way, but that they face a wall of opposition to the strategy that they’re pursuing,” Ms. Yellen said at a news conference at the opening of the meetings.

European countries are pursuing their own investigations into China’s trade practices and are considering more tariffs. However, they are taking different approaches and some nations, such as Germany, worry that a trade fight with China would be damaging to their own economies , which depend heavily on exports to the Chinese market. Germany’s finance minister, Christian Lindner, warned that trade wars are “all about losing.”

There were indications this week that both China and Russia are preparing their responses to the Group of 7’s actions.

The China Chamber of Commerce to the E.U. said on Tuesday that Beijing was considering a temporary tariff increase on car imports following the new U.S. tariffs and the prospect of new levies in Europe.

“This potential action carries implications for European and U.S. automakers,” the business group wrote.

At the same time, Russia is also mobilizing its response to Western plans to use its assets to help sustain Ukraine. A spokeswoman for Russia’s foreign ministry described the idea of using the profits from the assets as an attempt to legitimize theft at the state level and said that the European Union would feel the full measure of Russian retaliation.

President Vladimir V. Putin also signed a decree on Thursday indicating that Moscow would move to compensate itself for any losses that it incurs from the freeze on its sovereign assets by seizing U.S. property. Although Russia has little access to U.S. state assets, it could pursue private investors’ property in Russia or funds in Russian accounts.

Ms. Yellen dismissed Russia’s threats on Saturday, noting that it had already been warning that it would seize U.S. property.

“That’s not going to deter us from going ahead and taking action in support of Ukraine,” she said.

However, officials in Europe, where most of Russia’s assets are held, remain mindful of the potential for repercussions. Paschal Donohoe, president of the Eurogroup, a club of European finance ministers, said that the prospect of Russian retaliation had been a frequent subject of discussions.

“There is of course always the possibility that Russia may initiate additional measures in the future,” Mr. Donohoe said, explaining that he is confident that the Western allies had the authority to take the actions they were considering. “Any action we take with regard to any sanction or any additional economic measures will respect international law.”

It is uncertain if the policies that the finance ministers are considering will succeed in encouraging Russia or China to change course. Despite internal differences, the ministers appeared to agree that a united front is their best hope.

“The G7’s renewal of strong unity is being forged amid the challenges posed by Russia’s brutal aggression in Ukraine and China’s growing authoritarianism and economic woes,” said Mark Sobel, a former longtime Treasury Department official who is now the U.S. chairman of the Official Monetary and Financial Institutions Forum.

Alan Rappeport is an economic policy reporter, based in Washington. He covers the Treasury Department and writes about taxes, trade and fiscal matters. More about Alan Rappeport

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China to impose controls on exports of some aviation and aerospace equipment

FILE - Passengers walk past a couple browsing their smartphones near a China Southern Airlines, parked on the tarmac at the Beijing Capital International Airport Saturday, Nov. 19, 2016. China’s Commerce Ministry said Thursday, May 30, 2024, it will restrict exports of aviation and aerospace-related equipment and technology beginning July 1, 2024.(AP Photo/Andy Wong, File)

FILE - The Chinese WS-10 Taihang turbofan engine is displayed during the 12th China International Aviation and Aerospace Exhibition, also known as Airshow China 2018, in Zhuhai city, south China’s Guangdong province on Nov. 6, 2018. China’s Commerce Ministry said Thursday, May 30, 2024 it will restrict exports of aviation and aerospace-related equipment and technology beginning July 1. (AP Photo/Kin Cheung, File)

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BEIJING (AP) — China’s Commerce Ministry said Thursday it will restrict exports of some aviation and aerospace-related equipment and technology beginning July 1.

A notice seen Thursday on the ministry’s website said the move was to safeguard national security and interests and fulfill international obligations such as non-proliferation. Exports of items designated under the new rules will require export licenses.

The announcement was jointly released with China’s General Administration of Customs and the Central Military Commission’s equipment development department.

It said the export controls would apply to aircraft and aerospace engines and structural parts, engine manufacturing related equipment, software and technology. They also will include tools, molds, fixtures and other processing equipment used to make certain materials such as “superplastic” bonded with titanium, aluminum and their alloys.

Beijing and Washington have both moved to limit exports of products, technology and equipment considered vital to national security. China has also imposed sanctions against some U.S. aerospace and defense manufacturers to retaliate against sales of weapons to Taiwan, a self-governed island it claims as its territory.

The U.S. has export controls in force on exports of aero gas turbine engines, some aircraft and instruments, navigation equipment and systems.

The Commerce Ministry notice said the controls also would apply to technologies used in the development, making and use of the equipment, including design drawings, process specifications, process parameters, processing procedures, simulation data, and the like.

The overall impact of the move is unclear. China exports engine parts and other aircraft and space components. It also has developed its own jet engines. But it still relies on foreign suppliers for key parts of aircraft it has begun to produce using its own technology and manufacturers.