Hainan's Bold Steps: Launch of Special Customs Operations for Global Trade

Hainan, China — On December 18, 2025, Hainan, positioned in the southern part of China, made headlines by officially rolling out island-wide special customs operations. This pivotal move is deemed a significant milestone towards establishing the Hainan Free Trade Port (FTP) into a globally impactful trade zone by mid-century.

The newly implemented customs system marks a strategic upgrade, which is characterized by what officials call a "freer access at the first line, regulated access at the second line, and free flow within the island." Under this framework, the procedures for goods exchanged between Hainan and international markets will be significantly eased, with most customs processes being waived. In contrast, goods moving from Hainan to the mainland will continue to be subject to domestic trade regulations.

This innovative system aims to streamline clearance processes, decrease compliance burdens, and offer international businesses broader market opportunities. Some immediate benefits include zero tariffs on qualifying imported items, expedited visa protocols for foreign workers, and relaxed trading regulations in various service sectors.

The groundwork for this initiative was laid back in 2020 when China first articulated its ambitions for the Hainan FTP. This preparation seeks to cultivate a unique free trade port model by 2025 and develop into a mature, competitive entity by 2035. The approaching timeline has piqued the interest of numerous international corporations, several of which have recently initiated or expanded operations in key areas such as Haikou, Sanya, and the Yangpu Economic Development Zone. Their attraction stems from favorable tax incentives and streamlined administrative practices.

Months of rigorous testing in designated zones, coupled with enhancements in key infrastructure—including port facilities, digital customs platforms, and risk management strategies—have led to this significant launch. However, officials have reiterated that despite these expansions, the FTP will persist in enforcing restrictions on goods that are prohibited or regulated by national law.

The Hainan FTP is poised not only to reinforce China's dual circulation development strategy but also to enhance regional cooperation, particularly with ASEAN nations under the Regional Comprehensive Economic Partnership (RCEP). Anticipation grows regarding the additional revelations on financial liberalization, data governance, and talent policies expected to be introduced in the near future.

Hainan is an island with an area of about 35,100 square kilometers and, as of 2024, boasts a GDP exceeding 793 billion yuan. The pioneering customs system is designed to enhance various sectors, including tourism, modern services, high-tech industries, and efficient tropical agriculture.

As the world witnesses the Hainan FTP's transformation, it promises to carve a significant path in global trade, illustrating China's commitment to open markets and international collaboration.