China expands visa-free programs, adds Ireland & Switzerland

China has significantly broadened its visa-free programs in the last three months, with the recent inclusion of Ireland and Switzerland. This move signals a concerted effort to stimulate tourism and international business amidst a slowing economy.

The addition of Ireland and Switzerland to the visa-free list extends China's outreach to European travelers. Previously, China had granted 15-day visa-free access to citizens of France, Germany, Italy, the Netherlands, and Spain for tourism and business purposes.

China is also actively engaging with Asian travelers, extending the visa exemption to Malaysians and reaching an agreement with Thailand to waive reciprocal visa requirements. However, border traffic remains below pre-COVID levels, with 2023 entries and exits by foreign nationals at 36% of the 2019 figure.

This initiative coincides with a drop in foreign investment in China due to strained relations with Western governments and uncertainties in the regulatory landscape. Tight zero-COVID restrictions and an unclear business environment have also deterred visitors.

While foreign chambers of commerce welcome the visa changes, some experts express skepticism about their impact. Despite the challenges, China fully reopened its borders in March last year, reinstating visa-free travel for visitors from Singapore and Brunei. Visa fees were reduced by 25%, and Norway was added to a list of 54 countries with visa-free access for layovers.

China's strategic focus on Europe is evident, particularly as relations with the U.S. remain tense. Premier Li Qiang concluded a European tour in Dublin, emphasizing China as an attractive investment opportunity during the World Economic Forum in Davos.

The visa policies appear selective, as exemptions for Japanese and Americans vary. Although Japan's 15-day exemption remains suspended, U.S. citizens still require visas. Notably, Chinese authorities have eased requirements for tourists, no longer mandating proof of hotel reservations, round-trip air tickets, and invitation letters.

These policy changes aim to stimulate cross-border exchanges and increase international flights. The Civil Aviation Administration of China anticipates a rise in weekly international passenger flights to 6,000 by year-end, up from 4,600 at the close of 2023. However, capital flows from inbound tourism remain subdued at around 45% of pre-pandemic levels, necessitating a revival in outbound travel to sustain China's tourism industry.