Hainan's Ambitious Progress Towards Becoming China's Opening-Up Gateway

Hainan province is on its way to achieving independent customs operations by the end of this year. This milestone represents a significant step in establishing the Hainan Free Trade Port as a premier gateway for China's opening up, according to Feng Fei, the secretary of the Hainan Provincial Committee of the Communist Party of China.

During discussions with China Daily, Feng highlighted the importance of the Hainan initiative in broadening China's opening-up policies. He emphasized the province's commitment to ensuring the smooth implementation of these customs operations, noting that preparations are nearing completion. All ten critical ports pivotal for transshipping imported goods across China have successfully passed national acceptance inspections.

Independent customs operations are expected to align Hainan with international economic and trade standards, fostering greater global competitiveness. Over the past few years, Hainan has laid the groundwork for a tax policy framework that includes zero tariffs, low tax rates, and simplified systems to facilitate the seamless movement of trade, investment, people, vehicles, and data.

For instance, the province's duty-free policy has been extended to encompass the entire island, promoting the processing of value-added domestic sales. Hainan has attracted investments from 158 countries, while establishing streamlined financial transactions accessible in 41 regions globally, facilitated via multifunctional free trade accounts.

In a remarkable development, the expansion of visa-free entry for passport holders from 59 countries, initiated last February, led to a 115.6% increase in incoming tourists in 2024. Furthermore, Yangpu Port has now registered 52 international vessels, reinforcing its status as the second-largest port in China by tonnage.

Positioned as China's first digital processing trade zone, Hainan is actively implementing data processing for exports and has introduced over 260 games targeting international audiences. Going forward, Feng indicated that Hainan will continue to refine its trade and investment measures, advancing its institutional policies and promoting a robust market-oriented environment.

With over ten million residents, Hainan boasts the world's largest free trade port in terms of area and population, situated at the crossroads of Southeast Asia and the Chinese mainland. The province's strategic location near major markets positions it favorably for developments in the trade landscape.

Highlighting recent partnerships, Hainan has cooperated with 38 domestic and foreign free trade zones to advance its goals in alignment with initiatives like the Belt and Road Project. Partnerships include agreements between Yangpu Port and Abu Dhabi Ports and collaborations between Haikou Meilan International Airport and Singapore Changi Airport.

Moreover, initiatives driven by Hainan Holdings and Singapore's CapitaLand Investment aim to establish a green low-carbon international project, alongside the setup of the China-Europe (Baoting) Green and Digital Innovation Zone. Hainan is also actively pursuing integration into national and regional strategies, enhancing its ties with the Guangdong-Hong Kong-Macao Greater Bay Area.

Feng concluded by stating the province's focus on deepening cooperation with sister provinces to facilitate the global expansion of Chinese enterprises. As Hainan continues to strive for high-quality coordinated regional development, its role as a leading trade gateway in China's opening-up journey becomes increasingly pivotal.