US EditionChina launches $113 billion free-trade experiment on Hainan island
Hainan’s new customs regime exempts 74% of imported goods from tariffs, aiming to boost offshore finance, manufacturing, and tourism as part of China’s broader reform strategy.
- On Dec 18, Hainan province launched island-wide special customs operations, establishing the world's largest free-trade port by area at 35,400 sq km.
- The move follows President Xi Jinping's 2018 plan to build a Hainan free trade port with Chinese characteristics, aiming to navigate great-power competition and offset external risks.
- Customs authorities established two distinct boundaries for island and mainland trade, allowing about 6,600 goods, or 74 per cent of taxable imports, to enter tariff-free, while Hainan's customs network uses blockchain and AI for digital oversight.
- More than 500 million yuan of crude oil and medical equipment were expected to enter Hainan tariff-free on launch day, with frictionless island entry paired to regulated mainland access to prevent smuggling.
- Tax incentives include a 15% corporate income tax cap for selected industries and a 15% personal income tax for qualified global talent, but ecological and labour constraints remain long-term hurdles.
62 Articles
62 Articles
Beijing ups global trade push by designating new duty-free island
Beijing designated an island with an economy comparable to a small European nation as a distinct customs zone, part of efforts to drive commerce and seed China’s targeted accession to a trans-Pacific trade pact. Hainan, a tourist destination famed for its resorts, this week became a duty-free region and now allows foreign companies to operate in sectors there that they are barred from in mainland China. Beyond luring foreign investment, Beijing …
journalgazette.net
Hainan's Special Customs Operations Lay the Groundwork for Higher Level Opening Up
BEIJING, Dec. 19, 2025 /PRNewswire/ -- An interview from China.org.cn with ZHOU Mi, Senior Researcher at Chinese Academy of International Trade and Economic Cooperation on Hainan FTP:
China launches $113 billion free-trade experiment on Hainan island
China on Thursday split off a Belgium-sized island with an economy comparable to a mid-ranked country from the mainland for customs processing, part of a bid to join a major trans-Pacific trade deal and establish a new Hong Kong-style commercial hub.
The Daily News
China turns Hainan Island into special customs supervision zone
HAIKOU, CHINA - Media OutReach Newswire - 18 December 2025 - China on Thursday launched island-wide special customs operations in the Hainan Free Trade Port (FTP), the world's largest FTP by area, allowing freer entry of overseas goods, expanding zero-tariff…
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