* China launched island-wide special customs operations in the Hainan Free Trade Port (FTP) on Dec. 18, 2025. Over the past six months, the Hainan FTP has seen a steady stream of policy dividends, a surge in market vitality, and a marked rise in its profile as an opening-up hub.
* Data shows that from the launch of the special customs operations to May 31, Hainan added 1,240 foreign-funded enterprises, up 37.62 percent year on year. Zero-tariff imports more than doubled year on year, while the tariff-exemption policy on value-added processing generated 580 million yuan in domestic sales, with a reduction of nearly 30.25 million yuan in tariffs.
* During the same period, offshore duty-free sales in Hainan reached 20.34 billion yuan, up 20.5 percent year on year. The province recorded more than 1.38 million inbound and outbound passenger trips, up 31.8 percent year on year, with visa-free entries reaching 352,000, a year-on-year rise of 42.4 percent.
HAIKOU, June 19 (Xinhua) -- About a week ago, Co+Nut+Ink, a renowned Singaporean dessert brand, opened its first China store in Haikou, capital of south China's island province of Hainan, marking its official entry into the Chinese market via the Hainan Free Trade Port (FTP).
China launched island-wide special customs operations in the Hainan FTP on Dec. 18, 2025. "This is a landmark move in China's unwavering commitment to expanding high-level opening-up and promoting the development of an open world economy," said Wang Fengli, deputy director of the Office of the Free Trade Port Working Committee of the Communist Party of China Hainan Provincial Committee.
Over the past six months, the Hainan FTP has seen a steady stream of policy dividends, a surge in market vitality, and a marked rise in its profile as an opening-up hub.
Official data released on Wednesday showed that zero-tariff imports at the FTP surged 120 percent year on year to nearly 2.65 billion yuan (about 388 million U.S. dollars) from the launch of the special customs operations to May 31. The figures also recorded 139,500 new enterprises, a year-on-year increase of 123.04 percent, and over 1.38 million inbound and outbound passenger trips, up 31.8 percent from a year earlier.
FOREIGN INVESTORS RUSH IN
Driven by the special customs policies, the Hainan FTP's magnetic pull on market entities is steadily strengthening. Shifting from a "wait-and-see" stance to active entry, foreign investors have accelerated their expansion in Hainan. From the launch of the special customs operations to May 31, the province added 1,240 foreign-funded enterprises, up 37.62 percent year on year.
"After visiting Hainan for a site inspection last June, we were very optimistic about the FTP's prospects and quickly decided to open our first China store in Haikou," said Lawrence Tang, founder of Co+Nut+Ink, adding that local authorities offered the brand end-to-end support, from policy advice and site selection to business matchmaking, smoothing the path for the store's opening.
"We chose Hainan as our first stop precisely because of its international consumption cluster advantages after the launch of the special customs operations," Tang said. He revealed that Co+Nut+Ink will use the FTP as a springboard to expand into the Chinese market, and may relocate its production plant from Singapore to Hainan in the future.
Prior to that, a number of foreign-funded enterprises had already rushed to establish a presence in Hainan. Late last year, RichL Hospital (Singapore), the province's first wholly foreign-owned hospital, settled in Hainan's Boao Lecheng International Medical Tourism Pilot Zone.
This was followed by the groundbreaking of Siemens Energy Hainan Gas Turbine Assembly Base and Service Center in Danzhou City, Hainan, along with the establishment of Siemens Energy (Hainan) Co., Ltd. In addition, a number of other international cooperation projects, including the China-UAE international science and technology innovation park, have also broken ground on the island.
"The vigorous influx and deep-rooted presence of various market entities in Hainan fully demonstrate their firm confidence in the FTP's future," Wang said.
Rebecca Wong, South China Tax Markets Leader at PwC China, believes that the accelerated entry of foreign-funded enterprises since the launch of the special customs operations is not merely a short-term surge in policy dividends, but fundamentally reflects a sustainable growth logic rooted in the combination of high-level institutional opening-up and Hainan's unique strategic hub value.
POLICY DIVIDENDS PAY OFF
Under the special customs operations, Hainan FTP operates on a special supervision model described as "freer access at the first line, regulated access at the second line, and free flows within the island." The first line, connecting Hainan with overseas markets, allows overseas goods to enter the island more conveniently, with most benefiting from zero tariffs and expedited clearance, while the second line, the customs boundary with the mainland, applies standard customs oversight to ensure fairness and prevent smuggling.
Over the past six months, core customs policies, such as zero-tariff on imported goods and import tariff exemption for products with no less than 30 percent added value after processing, have been fully implemented in the Hainan FTP, with policy dividends rapidly translating into tangible competitiveness for businesses.
In early June, Hainan Zambon Pharmaceutical Co., Ltd., an Italian-invested pharmaceutical company based in Haikou, completed the installation and commissioning of an intelligent tablet packaging production line. The line is expected to officially go into operation in July.
"All three core mainframes of this production line were sourced from Italy," said Xian Haiyan, plant manager at Hainan Zambon. The imported equipment cost roughly 16 million yuan, but the Hainan FTP's zero-tariff policy on self-use production equipment saved the company about 1.3 million yuan in tariffs, savings that were channeled straight back into production upgrades.
In fact, since the launch of the special customs operations, the tariff-exemption policy on value-added processing, alongside the zero-tariff policy on equipment, has become a regular cost-saving tool for Hainan Zambon. The combined effect of these two policy-driven cost reductions gives the company greater pricing flexibility in the pharmaceutical market.
"Our three key auxiliary materials, orange juice granules, orange flavoring and mint flavoring, come from Italy and the United Kingdom. They are processed in Hainan and the finished products are sold across China, with tariff exemptions applying when value-added processing standards are met at the second line," said Wang Zhu, public affairs supervisor at Hainan Zambon. The company is now exploring the possibility of shifting some production for Southeast Asia to Hainan, taking advantage of the FTP's unique policies.
Data shows that from the start of the special customs operations through May 31, zero-tariff imports more than doubled year on year, while the tariff-exemption policy on value-added processing generated 580 million yuan in domestic sales, with a reduction of nearly 30.25 million yuan in tariffs.
OPENING-UP GATHERS PACE
As the special customs operations get underway, duty-free shopping is becoming the most visible hallmark of the Hainan FTP's openness. Recently, Zeynab Badalova, a tourist from Azerbaijan, bought a watch she had her eye on at the Sanya International Duty-Free Shopping Complex in Hainan. "This shopping mall is quite big. I have to walk around for like one day. There are a lot of brands, and the prices are quite affordable," she said.
Even before the special customs operations went into effect, the offshore duty-free policy had already undergone a major upgrade. The range of duty-free goods was expanded from 45 to 47 categories, with new additions including portable musical instruments and pet supplies. For Hainan residents, a new convenience measure was introduced, allowing unlimited "buy-and-pick-up" purchases throughout the year as long as they have at least one outbound travel record within the calendar year.
Statistics show that from the launch of the special customs operations through May 31, offshore duty-free sales in Hainan reached 20.34 billion yuan, up 20.5 percent year on year.
Cross-border travel to and from Hainan is picking up speed, fueled by relaxed visa-free policies, a growing network of international flights, and enhanced entry services. The province now welcomes travelers from 86 countries with visa-free entry and operates 78 international passenger routes connecting to more than 20 countries and regions.
In the five and a half months since the launch of the special customs operations, Hainan recorded more than 1.38 million inbound and outbound passenger trips, up 31.8 percent year on year, with visa-free entries reaching 352,000, a year-on-year rise of 42.4 percent.
The efficiency of goods and logistics clearance has likewise seen a notable improvement. Through institutional innovation, Haikou Customs has implemented a "direct release" mechanism for eligible zero-tariff and bonded goods, reducing the number of customs declaration items from 105 to 33.
Since the launch of the special customs operations, Hainan's total foreign trade in goods has reached 173.98 billion yuan, while the average clearance time for imports has been reduced by 20 percent. The 10 "second-line" ports are reported to be operating smoothly, with the declaration items for outbound island shipments streamlined by over 60 percent.
Additionally, capital and data are now flowing with greater freedom, boosting cross-border connectivity. Currently, more than 1,200 multi-functional free trade accounts (EF accounts) have been opened in Hainan, with the total business volume exceeding 600 billion yuan. Meanwhile, a negative list for outbound data transfers has been officially released, marking a key step in the FTP's exploration of high-level opening-up in the digital domain.
Hainan will proactively align with high-standard international economic and trade rules, steadily expand institutional opening-up, and advance the FTP's development to a higher standard with greater efforts and more concrete measures, said Wang, the official with the office of the Free Trade Port Working Committee.
(Reporting by Cui Enhui, Zhou Huimin and Wu Maohui; Video reporters: Zhao Yuhe, Guo Liangchuan, Wu Maohui, Liu Deng, Zhou Huimin and Guo Cheng; Video editors: Zhang Nan, Luo Hui and Hong Ling) ■
