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Adverse impacts and increasing economic losses from tropical cyclones (TCs) are a major focus in respect to the potential global warming of 1.5 °C or even 2.0 °C. Based on observed meteorological data and county‐scale loss records, loss‐inducing rainfall and wind speed thresholds are identified using the regional climate model CCLM to project future TC events in China. An established damage function is combined with future gross domestic product predictions under five shared socio‐economic pathways. At the 1.5 °C warming level, normalized TC losses will be four times higher than in the reference period (1986–2005). At the 2.0 °C warming level, a sevenfold increase is projected. Relative to the 1.5 °C warming level, TCs will become more frequent under the 2.0 °C scenario, especially along the southeast coast of China. Nearly 0.2–0.5% of the increase in gross domestic product might be offset by TC losses between the 1.5 °C and 2.0 °C warming levels, and the single highest TC loss at 2.0 °C may double that at 1.5 °C, with a larger affected area and more severe rainstorms and wind speeds. Rainfall is attributed more often to TC losses than wind speed. Limiting global warming at 1.5 °C would avoid an estimated increase in TC losses of more than 120 billion CNY annually. Based on a simple linear regression approach, normalized event‐based (a) and annual aggregated (b) TC losses in China will be four times higher at the 1.5 °C warming level than in the reference period (1986–2005). Relative to the 1.5 °C warming level, TCs will become more frequent under the 2.0 °C scenario, especially along the southeast coast of China. Limiting global warming at 1.5 °C would avoid an estimated increase in TC losses of more than 120 billion CNY annually. [ABSTRACT FROM AUTHOR]