Hainan province is on track to achieve independent customs operations by the end of this year, marking a significant step toward establishing the Hainan Free Trade Port as a premier gateway for China’s opening-up in the new era, according to Feng Fei, secretary of the Hainan Provincial Committee of the Communist Party of China.
Speaking with China Daily on the sidelines of the ongoing two sessions, Feng emphasized that the Hainan initiative will drive the country’s opening-up in a broader and deeper way.
“Hainan is fully dedicated to ensuring the seamless implementation of independent customs operations as planned,” he said, adding that the final stages of preparation, encompassing tasks, projects and stress tests, are nearing completion.
All 10 ports crucial for transshipping imported goods to the rest of China have passed their national acceptance inspections, he noted.
Feng also said that independent customs operations have the potential to enhance Hainan’s alignment with international high-standard economic and trade regulations, accelerating the creation of an open institutional system with global competitiveness.
In recent years, the island province has made significant progress in establishing a tax policy framework characterized by zero tariffs, low tax rates and simplified tax systems, facilitating the free and convenient movement of trade, investment, cross-border capital, people and vehicles, as well as the secure and orderly flow of data in and out of the free trade port.
For example, the duty-free policy for processing value-added domestic sales has been expanded to the entire island.
Hainan has attracted investment from 158 countries and regions and streamlined financial transactions with 41 countries and regions through multifunctional free trade accounts.
Furthermore, China’s decision to expand the purposes of visa-free entry to Hainan for passport holders of 59 eligible countries, starting in February last year, led to a 115.6 percent year-on-year surge in inbound tourists in 2024.
Yangpu Port in Hainan has registered 52 international vessels, solidifying its position as the country’s second-largest port in terms of tonnage.
The province has also secured approval to become China’s first digital processing trade zone, where activities such as data processing for exports are in progress, and it has launched more than 260 games targeting international players.
Looking ahead, Feng said that Hainan will continue to optimize measures for trade and investment liberalization, promote institutional opening-up and foster a top-notch market-oriented, law-based and internationalized business environment.
The Hainan Free Trade Port, whose structure is recognized as delivering advanced openness, is also the world’s largest in terms of area and population, boasting more than 10 million residents.
Facing the Pacific Ocean and the Indian Ocean, the FTP is located at the intersection of the two most dynamic markets, Southeast Asia and the Chinese mainland, Feng said, adding that China’s massive market of 1.4 billion people offers substantial advantages to the development of the FTP.
Hainan has also forged partnerships with 38 domestic and foreign free trade zones and ports as part of its effort to enhance exchanges and collaboration with countries involved in the Belt and Road Initiative, Feng said.
Notable collaborations include sister port agreements between Yangpu Port and the United Arab Emirates’ Abu Dhabi Ports, cooperation between Haikou Meilan International Airport and Singapore Changi Airport, joint efforts on a green low-carbon international demonstration project by Hainan Holdings and Singapore’s CapitaLand Investment, and the establishment of the China-Europe (Baoting) Green and Digital Innovation Zone in Hainan.
Meanwhile, Hainan is also actively integrating into major national and regional strategies, including a unified national market. It is intensifying its connections with the Guangdong-Hong Kong-Macao Greater Bay Area, advancing in tandem with Guangdong province, promoting the integrated development of Qiongzhou Strait ports and shipping, and propelling the development of the Guangdong-Hainan advanced manufacturing industrial park.
“In the future, Hainan will continue to deepen cooperation with sister provinces and cities to establish a gateway for Chinese enterprises to go global and achieve higher-level, higher-quality regional coordinated development,” Feng said.
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