Hainan Free Trade Port officially launched island-wide
customs operations on December 18, 2025, marking a milestone in China’s
opening-up strategy and boosting trade efficiency across the region.
Key Highlights
- Launch
Date: December 18, 2025, as announced by the Hainan provincial
government.
- Scope:
The entire island of Hainan now operates under a special customs
supervision model — “freer access at the first line, regulated access
at the second line, and free circulation within the island.”
- Zero-Tariff
Expansion: The proportion of tariff-free product categories has surged
from 21% to 74%, covering nearly all production equipment and raw
materials CCTV.com
English The
State Council of the People's Republic of China.
- Policy
Framework: New regulations include tax policies for goods moving
between Hainan and overseas markets (“first line”), between Hainan and
mainland China (“second line”), and within the island itself The
Manila Times Global Times.
- Operational
Readiness: Customs authorities conducted comprehensive drills and
round-the-clock trial operations to ensure smooth implementation The
Manila Times Global Times.
Why It Matters
- Boost
to Trade Efficiency: Simplified clearance procedures and expanded
zero-tariff policies make Hainan a low-cost, high-efficiency trade hub.
- Global
Gateway: Positioned as a connector between China and international
markets, the port is expected to attract more foreign investment and
strengthen supply chain resilience China
Daily.
- Strategic
Reform: Analysts describe the move as a “crucial leap” in China’s
reform and opening-up, aligning Hainan with international trade rules and
creating a testing ground for broader liberalization CCTV.com
English.
- Economic
Impact: Over the past five years, Hainan has attracted investment from
176 countries and regions, with actual foreign investment reaching 102.5
billion yuan ($14.47 billion). The new customs system is expected to
accelerate this trend China
Daily.
Outlook
- Near-Term:
Businesses can expect smoother import/export processes, reduced costs, and
greater predictability in logistics.
- Long-Term:
By 2035, Hainan aims to become a mature free trade hub, and by
2050, a globally influential duty-free trading center CCTV.com
English.
In summary, the island-wide customs operations at Hainan
Free Trade Port represent a transformative step in China’s trade
liberalization, offering businesses unprecedented efficiency and positioning
Hainan as a key gateway for global commerce.
