Hainan's Bold Steps: Advancements Towards Free Trade and Sustainability

Hainan, the tropical paradise of China, is on the cusp of a historic milestone with the introduction of independent customs operations as part of its Free Trade Port (FTP) initiative. This significant step aligns with the provincial government's commitment to advance Hainan as a pivotal hub for international trade and commerce. Under the guidance of Chinese President Xi Jinping, who has emphasized the importance of a seamless and secure transition towards this goal, Hainan is gearing up for a transformative year ahead.

In an exclusive interview with Liu Xiaoming, the governor of Hainan, he assured that preparations are well underway for a successful implementation by year-end. Contrary to misconceptions that cast the new customs measures as isolationist, Liu clarified that they follow a model of "open frontlines, controlled second lines, and internal mobility." This approach not only streamlines international trade but also maintains necessary regulatory oversight between Hainan and the mainland.

"Progress has been smooth, and the five action areas—policy, infrastructure, risk control, industry, and organizational support—are gradually taking shape," Liu stated confidently. Hainan's ambition extends beyond mere customs reform; the province is actively enhancing its overall business environment, viewing it as a vital catalyst for success.

In recent years, Hainan has taken significant strides towards creating a market-oriented, legally grounded, and globally integrated business landscape. It has emerged as a nationwide leader in simplifying bureaucratic processes and has launched a centralized service platform for businesses. This platform facilitates smarter policy coordination, credit support, and regulatory assistance, granting foreign firms equitable access to essential services.

To further improve the experience for foreign investors, Liu highlighted ongoing enhancements to internet access and payment systems essential for easing daily operations and living arrangements. Hainan's strategic focus encompasses four key sectors: tourism, modern services, high-tech industries, and tropical agriculture. The combined contribution of these sectors to the province’s economy has surged from 52.4% in 2018 to 67% in 2023.

Moreover, Hainan has targeted five strategic directions for development: agriculture, maritime transport, aerospace, sustainable growth, and digital economy. Among these, maritime transport has gained particular priority. Liu stressed the urgency of harnessing ocean resources, given that Hainan boasts around 2 million square kilometers of ocean, mostly deep-sea. The province is already home to nearly 1,000 enterprises and research institutes engaged in deep-sea technologies and maritime industries, reflecting a double-digit growth trend in its maritime economy, which contributes over a third of Hainan’s GDP.

Plans are underway to further scale up deep-sea energy, high-end equipment manufacturing, offshore aquaculture, marine biomedicine, and maritime tourism. Liu Xiaoming envisions a future where Hainan emerges as a "new Hainan by the sea" within the next decade.

Environmental sustainability is another crucial pillar of Hainan’s strategy. The region is recognized for having one of the best ecological environments in China. A prime example of Hainan's dedication to green initiatives can be observed in the Bo'ao Near-Zero-Carbon Demonstration Zone. Through energy-efficient renovations, the introduction of renewable energy sources, and agro-photovoltaic systems, carbon emissions on Dongyu Island have been slashed by a remarkable 96.2%. Furthermore, this initiative has been certified as China’s first regional carbon-free demonstration zone by the German Energy Agency.

With the impending implementation of independent customs operations, a continually improving business environment, targeted industrial developments, and ambitious ecological commitments, Hainan is poised to emerge as a global leader in trade, innovation, and sustainability. The future of the Free Trade Port signifies not only dynamic growth but also a strengthened international presence, ensuring alignment with both national goals and global economic trends.