China announced a lower threshold for tax refunds for foreign tourists among a series of policies on Sunday to boost consumption as its economy comes under pressure during a trade war between Beijing and Washington.

Travellers can apply for a tax refund if they spend 200 yuan (about $27) at the same store on the same day and meet other requirements starting Sunday, according to a joint statement by the Ministry of Commerce and other authorities.

Previously, the minimum amount was 500 yuan (about $69), reports AP.

The upper limit for their tax rebate in cash also has been doubled to 20,000 yuan ($2,745).

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The government will expand the coverage of tax refund shops and streamline the procedures. Officials encourage some regions to set up refund points for travellers to get rebates immediately after their purchases in areas highly concentrated with tourists, the statement said.

China's Vice Minister of Commerce Sheng Qiuping told reporters in a news conference that inbound tourist consumption accounted for about 0.5% of China's gross domestic product in 2024, while figures in other major countries ranged between 1% and 3%. That indicated a great potential for growth, Sheng said.

Last year, inbound tourists' spending hit $94.2 billion, up 77.8%, he added.

China’s economy expanded at a 5.4% annual pace in January-March, the government said earlier this month, supported by strong exports ahead of US President Donald Trump’s rapid increases in tariffs on Chinese products.