HAIKOU, China, Dec. 18, 2025 /PRNewswire/ -- A report from Hainan International Media Center:
China's southern island province of Hainan officially launched island-wide special customs operations on Thursday, a key step in developing the Hainan Free Trade Port (FTP) into a globally influential high-level free trade zone by the mid-century.
The move, effective from December 18, implements a custom-specific regulatory system defined as "freer access at the first line, regulated access at the second line, free flow within the island." Under the framework, goods flowing between Hainan and overseas countries and regions will be largely exempt from customs procedures. In contrast, the movement of goods from Hainan to the Chinese mainland will be regulated as domestic trade, with tailored oversight.
Authorities say the new system will simplify clearance processes, lower compliance costs, and enhance market access for international businesses. Early policies include zero tariffs on eligible imported goods, simplified visa procedures for foreign professionals, and liberalized trade in services.
China unveiled the master plan for the Hainan FTP in 2020, aiming to build the island into a free trade port with Chinese characteristics by 2025 and a mature, internationally competitive one by 2035.
International businesses have shown growing interest. Several multinational corporations have recently expanded their operations in Haikou, Sanya, and the Yangpu Economic Development Zone, attracted by preferential tax policies and streamlined administrative procedures.
The launch follows months of testing in selected zones and upgrades in port infrastructure, digital customs platforms, and risk-control mechanisms. Officials emphasized that while opening wider, the FTP will maintain controls on goods prohibited or restricted by national laws.
The Hainan FTP is designed to support China's dual circulation development strategy while reinforcing its role in regional cooperation, including with ASEAN members under the Regional Comprehensive Economic Partnership (RCEP).
Observers expect further details on financial opening, data governance, and talent policies to be rolled out in the coming year.
Editor's Notes:
- Hainan covers approximately 35,100 square kilometers and had a GDP of over 793 billion yuan in 2024.
- The "first line" refers to the border between Hainan FTP and other countries/regions; the "second line" refers to the connection between Hainan and the Chinese mainland.
- Key industries prioritized in the FTP include tourism, modern services, high-tech, and high-efficiency tropical agriculture.
Video - https://www.youtube.com/watch?v=aFu_SKmNUs8
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