China Expands Hainan Free Trade Port

(MENAFN) On Thursday, China introduced a distinct customs framework across the Hainan Free Trade Port (FTP), the largest of its kind globally by land area, enabling overseas goods to enter freely, according to Xinhua.

Situated in the southern island province of Hainan, the FTP spans an area comparable to Belgium. Foreign companies operating there can now benefit from reduced taxation and lower production expenses, while also using the island as a gateway to the broader Chinese mainland market.

Authorities explained the system as "freer access at the first line," which allows smoother trade between Hainan and regions outside China’s customs boundaries, and "regulated access at the second line," meaning standard customs checks will apply to goods moving from Hainan into the mainland.

The proportion of zero-tariff products in the Hainan FTP has risen significantly, from 21% to 74%, expanding the catalog from 1,900 items to more than 6,600. Goods processed in Hainan that achieve at least 30% added value can be sold duty-free in mainland China.

Hainan, home to about 10 million residents, was designated China’s largest special economic zone in 1988. Since 2020, it has attracted over 9,600 foreign-invested enterprises, according to official figures.

Over the past decades, China has set up 22 pilot free trade zones, with the most extensive being the entire Hainan Island, covering 30,000 square kilometers.

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