China’s appeal as a destination for foreign tourists and students has diminished significantly since the onset of COVID-19, revealing key weaknesses in its approach to foreign engagement. Under Xi Jinping, who took power in 2012, the nation aimed to boost its standing as a global travel hotspot. Yet, foreign arrivals are down by about half from pre-pandemic levels, with genuine international visitors plummeting by 51% from 2019.
The Chinese Communist Party (CCP) has touted impressive figures, claiming 132 million inbound tourists in 2024. However, much of this number inflates the figures with residents from Hong Kong, Macau, and Taiwan. Only approximately 32 million of those visitors are truly international, a stark contrast to the U.S., which welcomed 72.4 million international travelers in the same year. Reports highlight a growing trend: while foreign spending in the U.S. surged to $253.9 billion, China is experiencing a decline.
The downward trajectory extends to foreign student enrollment as well. After peaking at nearly half a million in 2018, numbers sank below 300,000 by 2022 and reached 380,000 for the 2024–2025 academic year, marking a notable reduction in those pursuing degree programs. This drop raises questions about China’s ability to attract global talent amid mounting competition from other nations.
The struggles in the tourism and education sectors reflect broader economic challenges. Airports and travel retailers are facing significant financial hardships. Prominent companies like Beijing Capital Airport have reported losses for five consecutive years. The grim statistics—operating costs surpassing revenue, plummeting stock values—underscore fears of continuing declines in travel demand.
China’s Great Firewall plays a substantial role in discouraging international visitors. It restricts access to crucial digital services integral for foreign travelers. Key platforms such as Google services, Facebook, and major news outlets are blocked, creating a significant hurdle for those attempting to navigate life in China. The recent directive from the Cyberspace Administration to remove popular communication apps exacerbates these barriers, further isolating the country from the global community.
Moreover, cashless payment systems illustrate another obstacle. Although measures have been introduced to better accommodate foreign visitors, many still find themselves unable to engage with businesses that no longer accept cash. These issues compound the already complex landscape foreign travelers must navigate, deterring them from choosing China as their destination.
Trends in foreign residents have been concerning for some time. Beijing’s foreign resident population saw a 40% decrease over the last decade, while Shanghai’s numbers fell by 64% in just five years. The uncertainty surrounding exit bans for foreigners adds another layer of deterrent for international business travelers. Reports of arbitrary exit bans originating from civil disputes illustrate how local legal systems can undermine the confidence needed for international commerce.
Foreign direct investment (FDI) figures further emphasize the deteriorating environment. Once considered a prime destination for investment, China is now experiencing the lowest FDI levels in three decades, with a staggering decline from $344 billion in 2021 to just $18.6 billion in 2024. This trend suggests a concerning aversion among global investors, especially highlighted by the reduction of Japanese companies operating in the country due to espionage fears.
The ongoing decline in international visitors, students, and investment suggests a broader failure in China’s attempts to integrate with the global economy. As Beijing loses not just tourism revenue but also foreign educational contributions and investments that once enriched its economy, the long-term implications of these trends remain significant. Without a reversal in policies and attitudes toward foreign engagement, China’s aspirations of becoming a global leader are increasingly in jeopardy.
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