Get ready for big changes in Hainan! China’s tropical island province is set to launch island-wide independent customs operations on December 18, 2025, marking a significant step in opening up to the world.
The Hainan Free Trade Port (FTP) will introduce sweeping trade and tax policies designed to boost investment, trade, and development. Here’s what you need to know:
Expanded Zero-Tariff Goods
The coverage of zero-tariff goods will expand dramatically. The proportion of duty-free imported goods will increase from 21% to 74%, covering around 6,600 product categories, up from the current 1,900. This means more goods can circulate tax-free among eligible businesses within Hainan.
Streamlined Customs Operations
Eight ports will serve as first-tier entry points, allowing faster clearance for qualified imports. Ten second-tier ports will manage goods entering the Chinese mainland. Goods produced by encouraged industries in Hainan that achieve at least 30% value-added processing can enter the mainland tariff-free.
Boosting Key Industries
The new policies aim to strengthen supply chains, attract foreign investment, and foster industrial clusters in sectors like tourism, modern services, high-tech industries, and tropical agriculture. These sectors already account for 67% of Hainan’s GDP.
Green Energy and Innovation
Hainan is leading the way in China’s green energy transition. Clean energy sources now account for 70% of the island’s power generation. Hainan also leads in electric vehicle adoption, with a penetration rate of 59.6%.
Growing Global Connections
Over the past five years, Hainan has seen rapid growth in foreign trade and investment. Foreign direct investment inflows reached 102.5 billion yuan (about $14.3 billion), growing at 14.6% annually. Goods trade volume surged 31.3% yearly, with 176 countries and regions investing in the island. Plus, citizens from 85 countries now enjoy visa-free entry, making Hainan one of China’s most accessible destinations.
What Does This Mean for You?
According to Wang Changlin, deputy head of the National Development and Reform Commission, tourists and business travelers will see no changes and won’t need extra documents for entry. “The customs closure is a new starting point for Hainan’s development,” Wang said. The government plans to continue refining policies to enhance openness and build Hainan into China’s premier gateway for global trade.
If you’re looking to explore new opportunities or simply want to visit a dynamic and rapidly developing region, Hainan might just be the place to watch in the coming years!
