Chongqing has surpassed Shanghai as China’s top city for consumer spending in 2025, a shift driven by a larger consumer base, a lower cost of living, and a surge in both domestic and international tourism.
A Shift in Spending Power
The southwestern municipality’s total retail sales of consumer goods reached 1.67 trillion yuan (S$312 billion) in 2025, exceeding Shanghai’s 1.66 trillion yuan. This marks the first time in seven years that Shanghai has been overtaken in this metric. Chongqing previously held the second position in 2022.
The change is partly attributed to increased tourism. Chongqing received 279 million domestic visitors in the first seven months of 2025, spending 297.6 billion yuan – an 11.1 per cent increase year-over-year. Foreign tourist numbers also jumped 30 per cent, reaching 760,000 in 2025, with visitors primarily coming from Malaysia, Thailand, Singapore, Indonesia, and South Korea.
The Allure of Chongqing
The city’s appeal is fueled by its unique attractions, often showcased on social media, including its spicy mala hotpot, unusual terrain, and vibrant nightlife. A Singaporean tourist, Aloysius Koh, 28, said his visit was prompted by seeing these attractions online, and he ended up spending 20 per cent more than budgeted due to lower prices. A Thai tourist reported exceeding his budget by 70 per cent, drawn in by the city’s nightlife.
Chongqing’s lower cost of living, with culinary specialties like hotpot and noodles being particularly affordable, also contributes to its attractiveness. The city has also been actively encouraging businesses to innovate and attract consumers through events and new product launches.
Looking Ahead
While Chongqing’s success is a positive sign for China’s efforts to boost domestic demand in 2026, experts caution that sustained growth will require attracting higher-spending tourists. The city’s per capita annual disposable income, at 41,580 yuan, remains lower than that of Shanghai (91,987 yuan) and Beijing (89,090 yuan).
Frequently Asked Questions
What drove the increase in consumer spending in Chongqing?
The increase was driven by a larger consumer base, a lower cost of living, and a significant rise in both domestic and international tourism.
Where are most of the foreign tourists visiting Chongqing coming from?
The top five sources of foreign tourists are Malaysia, Thailand, Singapore, Indonesia, and South Korea, with Southeast Asia accounting for 72 per cent of total overseas visitors.
What is the “debut economy” that Chongqing is encouraging?
The “debut economy” refers to store launches of new products, business models, or technology and services designed to generate buzz among consumers.
As Chongqing continues to attract visitors, will it be able to maintain its position as a leading consumer hub in China?
