Chinese consumers are upgrading their lifestyles, and spending more to do so, which has spurred a growing demand for imported goods.

“China’s consumption can be divided into three stages,” said Professor Li Li from Asia-Pacific Model E-Port Network Operational Center, with the first stage being in the 1980s when China first started opening up.

The average tariff rate in the first period was around 40 percent, for many food imports the rate was as high as 80-100 percent. In the second period after China joined the WTO, the average tariff rate decreased to roughly 10 percent. 

She describes the more recent third stage as the signing of free trade agreements and the setting up of free trade zones in China. With these in place, many imported products are no longer taxed when entering the Chinese market. 

Professor Li Li from Asia-Pacific Model E-Port Network Operational Center/CGTN Photo

According to the website World's Top Exports, China imported goods worth close to 1.6 trillion US dollars from around the world in 2016, up 58 percent from 2009. The average Chinese household’s purchasing power has increased dramatically since the country started opening up in the late 1980s, from 80 US dollars GDP per capita annually to 800,000 US dollars GDP per capita. This means people now are not only looking for quality, but also variety.

Shi Yan and her family./CGTN Photo‍

Shi Yan, a local Shanghai resident, says her purchasing habits have changed as her income rose. “I value safety and quality the most when it comes to buying imported products, usually food for my kid or skincare and cosmetic products for myself. The difference between high-quality domestic goods and imported goods is marginal,” she said.