China’s Hainan Free Trade Port is stepping into a new era of openness, and the world is watching. This year, Hainan is set to launch its customs closure operation, signaling a bold move in China’s journey toward high-level global integration.
Over the past five years, Hainan, an island province in the Chinese mainland, has transformed into a hotspot for international trade and investment. With 158 countries and regions investing in Hainan, and partnerships formed with 38 free trade zones around the world, the island is fast becoming a global hub.
Since 2018, Hainan’s economic openness has more than doubled, jumping from 17.3% to 35% in 2024. Last year, the total value of imports and exports by Hainan-based companies reached over 277 billion yuan, marking a 20% increase from the previous year.
Hainan is also strengthening ties with its neighbors. The Regional Comprehensive Economic Partnership (RCEP), which includes many Southeast Asian countries, accounted for 30% of Hainan’s total trade in 2024. This growing cooperation is opening doors for ‘Made in Hainan’ products to reach new markets.
The island’s booming industries—tourism, modern services, high-tech, and tropical agriculture—now contribute to 67% of its GDP. This diverse industrial base is not only boosting economic growth but also enhancing Hainan’s appeal as a trade and investment destination.
The upcoming customs closure of Hainan Free Trade Port aims to simplify trade and investment. By adopting policies like ‘tariff-free, low tax rates, and simplified tax system,’ Hainan is making it easier for businesses and investors to operate.
With these developments, Hainan is poised to become a key player in global trade. Its enhanced connectivity and business-friendly environment will not only benefit China but also create new opportunities for countries around the world. Hainan’s journey reflects China’s commitment to opening up and embracing the global community.
