China's duty-free market has huge potential: newspaper

China's duty-free consumption is accelerating due to policy incentives that will provide momentum for continued consumption growth, the Economic Information Daily reported Friday. Chinese cities of Beijing and Zhengzhou recently opened cityside duty-free shops, and more such stores are planned for Shanghai and Haikou.

"China's duty-free retail market possesses huge potential as people's consumption capacity has increased amid widening market scope," Guan Lixin, a researcher with the Chinese Academy of International Trade and Economic Cooperation, told the newspaper.

Steps to open cityside duty-free shops and optimize domestic duty-free shopping experience are conducive to meeting people's demand for high-quality international goods, according to Guan.

Chinese authorities in March issued new guidelines in a bid to boost consumption and unleash the potential of the domestic market, and vowed further reforms for the duty-free sector.

Favorable policies have further opened up the market space for the domestic duty-free industry, which is expected to exceed 150 billion yuan (about 21.15 billion U.S. dollars) in 2025, and will eventually hit 200 billion yuan in the long run, said the newspaper, citing a China Securities research note.