Hainan province is on track to achieve independent customs operations by the end of this year, marking a significant step toward establishing the Hainan Free Trade Port as a premier gateway for China’s opening-up, according to Hainan Party Secretary Feng Fei. He added that the final stages of preparation are nearing completion. All 10 ports crucial for transshipping imported goods to the rest of China have passed their national acceptance inspections, he noted. Feng also said that independent customs operations have the potential to enhance Hainan’s alignment with international high-standard economic and trade regulations, accelerating the creation of an open institutional system with global competitiveness. In recent years, the island province has made significant progress in establishing a tax policy framework characterized by zero tariffs, low tax rates and simplified tax systems, facilitating the free and convenient movement of trade, investment, cross-border capital, people and vehicles, as well as the secure and orderly flow of data in and out of the free trade port.
Hainan has attracted investment from 158 countries and regions and streamlined financial transactions with 41 countries and regions through multifunctional free trade accounts. China’s decision to expand the purposes of visa-free entry to Hainan for passport holders of 59 eligible countries, starting in February last year, led to a 115.6% year-on-year surge in inbound tourists in 2024. Yangpu Port in Hainan has registered 52 international vessels, solidifying its position as the country’s second-largest port in terms of tonnage. The province has also secured approval to become China’s first digital processing trade zone, where activities such as data processing for exports are in progress, and it has launched more than 260 games targeting international players.
The Hainan Free Trade Port is the world’s largest in terms of area and population with more than 10 million residents. Facing the Pacific Ocean and the Indian Ocean, the FTP is located at the intersection of the two most dynamic markets, Southeast Asia and the Chinese mainland, Feng said. Hainan has also forged partnerships with 38 domestic and foreign free trade zones and ports as part of its effort to enhance exchanges and collaboration with countries involved in the Belt and Road Initiative (BRI). Notable collaborations include sister port agreements between Yangpu Port and the United Arab Emirates' Abu Dhabi Ports, cooperation between Haikou Meilan International Airport and Singapore Changi Airport, joint efforts on a green low-carbon international demonstration project by Hainan Holdings and Singapore’s CapitaLand Investment, and the establishment of the China-Europe (Baoting) Green and Digital Innovation Zone in Hainan. Hainan is also intensifying its connections with the Guangdong-HongKong-Macao Greater Bay Area, the China Daily reports.
