Hainan to launch independent customs operations Dec 18

An aerial drone photo shows a duty-free shopping mall in Sanya, South China”s Hainan province, May 29, 2025. [Photo/Xinhua]

The Hainan Free Trade Port will launch island-wide independent customs operations on Dec 18, a key step in transforming the tropical island into a globally significant free trade hub, a senior official announced Wednesday.

Wang Changlin, vice chairman of the National Development and Reform Commission, confirmed the date at a press conference hosted by the State Council Information Office. The move marks a milestone in China’s efforts to boost economic openness and attract foreign investment.

Under the independent customs operations, goods entering or leaving the island province of Hainan, unless destined for any place on the Chinese mainland, will be subject to fewer customs checks and potentially lower or no tariffs. This allows Hainan to operate as a separate customs territory while remaining within China’s sovereign borders.

The upcoming changes will streamline cross-border trade and reinforce Hainan’s role in China’s broader strategy to deepen international economic integration.

The Hainan Free Trade Port will implement more favorable zero-tariff policies for goods. The proportion of products eligible for zero-tariff treatment at the port will rise sharply from 21 percent to 74 percent of tariff lines.

Feng Fei, Party secretary of Hainan, said the free trade port has entered a critical phase of rapid development, calling it “a new frontier for China’s opening-up, a hotspot for regional cooperation, and a fresh engine for economic globalization”.

Over the past five years, Hainan has significantly expanded its global ties, with foreign direct investment reaching 102.5 billion yuan ($14.3 billion), averaging 14.6 percent annual growth. Outbound investment surged to $9.78 billion, showing an average annual increase of 97 percent. New foreign-funded enterprises jumped 43.7 percent each year on average to 8,098. Trade in goods and services grew by 31.3 percent and 32.3 percent per year, respectively.

The island now hosts investors from 176 countries and regions, with its economic openness ratio rising to 35 percent. Hainan also boasts China’s most lenient visa-free policy, allowing travelers from 85 countries to enter without a visa.

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