Abstract Medical tourism, encompassing advanced health check-ups, cosmetic surgery, rehabilitation treatments, and traditional therapies, has emerged as a rapidly growing segment of the global tourism industry. While countries like India, Thailand, and Singapore have established themselves as leading destinations in this field, China has historically been a medical tourism exporter, catering to affluent domestic patients seeking advanced care abroad. However, recent developments in China's healthcare sector, such as advancements in medical technology, the global appeal of traditional Chinese medicine (TCM), and favorable policies, suggest the potential for China to transform into a competitive medical tourism destination. Despite these advancements, the literature lacks comprehensive studies addressing how this transformation can overcome persistent barriers, including weak international branding, insufficient cross-cultural service capacity, and limited integration with global medical insurance systems. Addressing these gaps is critical for leveraging medical tourism to revitalize China's inbound tourism sector, particularly in the post-COVID-19 era. Here, we combined a systematic literature review with a case study analysis of key initiatives, such as the Hainan Boao Lecheng International Medical Tourism Pilot Zone, to evaluate China’s transition from a medical tourism exporter to a destination. This study identifies the strategic drivers of this transition, including cost advantages, TCM's cultural appeal, and policy support, alongside critical challenges such as the need for enhanced service internationalization, patient trust, and global recognition. Our findings show that while China has made significant strides in building medical tourism infrastructure, addressing these barriers is crucial to fully realizing its potential as an international medical tourism hub. These results highlight that by bridging the identified gaps, China can strengthen its position in the global medical tourism market, contributing not only to the diversification of its inbound tourism sector but also to the international competitiveness of its healthcare system. Furthermore, this study provides actionable recommendations for policy execution, service optimization, and TCM internationalization, offering a pathway to align China’s medical tourism industry with global standards and advancing its role in the broader context of global health and tourism development. Keywords: Medical Tourism; Traditional Chinese Medicine (TCM); Inbound Tourism; Global Health Governance; Post-COVID-19 Era.