China’s Hainan Free Trade Port (FTP) will begin an island-wide independent customs operation on December 18, 2025, marking a major milestone in the country’s push for high-standard opening up and economic reform.
The move, announced during Xinhua’s China Economic Roundtable, is expected to accelerate Hainan’s transformation into a globally competitive hub for trade, investment, and innovation. Senior officials from the National Development and Reform Commission (NDRC), the Ministry of Finance, and the Ministry of Commerce highlighted the port’s strategic role as China’s largest special economic zone.
Since its designation as a pilot free trade zone in 2018, Hainan has pursued a long-term vision to become a world-class free trade port. The 2020 master plan set the goal of achieving global influence in openness by mid-century.
Zero-Tariff Incentives to Boost Trade
A central feature of the new customs regime will be expanded zero-tariff policies. Tariff-free product lines in Hainan will jump from 21% to 74%, while the number of eligible tariff-free items will increase from about 1,900 to 6,600. Imported goods with at least 30% value-added processing in Hainan will enter the mainland tariff-free, alongside selective lifting of restrictions on certain goods.
Officials say these policies will cut business costs, attract investment, strengthen industrial clusters, and enable high-quality global resources to flow into Hainan more efficiently.
Gateway for High-Level Openness
The island-wide customs operation is part of a broader plan to promote free movement of trade, capital, logistics, talent, and data while ensuring regulatory security. Authorities are also reforming tax policies to draw top enterprises and talent to the province.
Hainan’s foreign investment performance has already been remarkable, from 2020 to 2024, it attracted more investment than in its previous 32 years combined, with goods trade growing over 30% annually.
Experts see the December 2025 launch as both a bold experiment in institutional innovation and a clear signal of China’s commitment to deepening economic globalisation amid global trade uncertainties.
According to NDRC official Cai Ping, “With independent customs operations, Hainan FTP will be a key gateway for China’s new era of opening up and innovation.”
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