Hainan Free Trade Port Gains Momentum as Island-Wide Special Customs Operations Drive New Wave of Investment and Openness

Six months after the launch of island-wide special customs operations, the Hainan Free Trade Port (FTP) is emerging as one of China's most dynamic gateways for international trade, investment, tourism, and innovation, fueled by a growing influx of global businesses and a series of landmark opening-up measures.

As a flagship initiative in China's high-level opening-up strategy, the Hainan FTP has entered a new phase of development since the implementation of island-wide special customs operations on December 18, 2025. The milestone introduced a unique customs framework featuring "free access at the first line, regulated access at the second line, and free circulation within the island," creating new opportunities for global enterprises seeking access to the Chinese market.

Recent official data highlights the growing momentum of the FTP. From the launch of the special customs operations through May 31, 2026, Hainan recorded nearly 2.65 billion yuan ($388 million) in zero-tariff imports, representing a year-on-year increase of 120%. During the same period, the province registered 139,500 new market entities, up 123% year on year, while cross-border passenger trips exceeded 1.38 million, an increase of 31.8%.

International Businesses Expand Presence in Hainan

The enhanced policy environment is attracting a growing number of international investors and businesses.

Among the latest arrivals is Singapore-based dessert brand Co+Nut+Ink, which recently opened its first store in China in Haikou. The company selected Hainan as its entry point into the Chinese market, citing the FTP's international consumption ecosystem and supportive business environment.

The trend extends beyond consumer brands. Recent months have also seen major investments in healthcare, advanced manufacturing, and technology cooperation projects. These include Hainan's first wholly foreign-owned hospital established by Singapore's RichL Hospital, the Siemens Energy Hainan Gas Turbine Assembly Base and Service Center, and the China-UAE International Science and Technology Innovation Park.

According to local officials, the steady influx of foreign-invested enterprises demonstrates growing confidence in Hainan's long-term development prospects as a global free trade port.

From the launch of the special customs operations through May 2026, Hainan added 1,240 foreign-funded enterprises, representing year-on-year growth of 37.6%.

Policy Innovation Translates Into Business Benefits

A key driver of Hainan's appeal is its expanding package of preferential policies designed to reduce operating costs and improve business efficiency.

Core measures include zero tariffs on eligible imported goods and production equipment, as well as tariff exemptions for products that achieve specified levels of value-added processing within Hainan.

These policies are already generating tangible benefits for businesses operating on the island. Companies in sectors ranging from pharmaceuticals to advanced manufacturing are reporting significant cost savings, enabling greater investment in production upgrades, research, and regional expansion.

The value-added processing policy has become particularly attractive for companies seeking to integrate global supply chains with manufacturing and distribution operations serving both China and international markets.

Since the implementation of the special customs operations, Hainan has recorded more than 580 million yuan in domestic sales under the value-added processing tariff exemption policy, with tariff savings exceeding 30 million yuan.

Tourism, Consumption, and Connectivity Continue to Expand

The Hainan FTP is also strengthening its position as an international tourism and consumption destination.

Duty-free shopping remains one of the most visible symbols of the island's opening-up strategy. From the launch of the special customs operations through May 31, 2026, offshore duty-free sales in Hainan reached 20.34 billion yuan, up 20.5% year on year.

At the same time, Hainan continues to expand international connectivity through visa-free policies and an expanding global aviation network. The province currently offers visa-free access to travelers from86 countries and operates 78 international passenger routes connecting destinations across Asia, Europe, and the Middle East.

The growing flow of visitors has contributed to a significant increase in inbound and outbound travel, with visa-free arrivals rising by more than 42% during the first five and a half months following the launch of the special customs operations.

Building a High-Standard Free Trade Port

Beyond trade and tourism, Hainan is accelerating reforms in customs clearance, cross-border finance, and data flows to support a more open and efficient business environment.

Customs authorities have streamlined declaration procedures and introduced faster clearance mechanisms for eligible goods, while more than 1,200 multi-functional free trade accounts (EF Accounts) have been opened, supporting cross-border financial activities with a cumulative transaction volume exceeding 600 billion yuan.

Hainan has also introduced a negative list for outbound data transfers, marking another step toward higher-level institutional opening-up in the digital economy.

As China continues to advance its opening-up agenda, the Hainan Free Trade Port is increasingly positioning itself as a strategic hub connecting domestic and international markets. With expanding policy support, rising investor confidence, and growing global connectivity, the FTP is expected to play an increasingly important role in facilitating trade, investment, innovation, and international cooperation in the years ahead.

About Hainan Free Trade Port

Six months after the launch of island-wide special customs operations, the Hainan Free Trade Port (FTP) is emerging as one of China's most dynamic gateways for international trade, investment, tourism, and innovation, fueled by a growing influx of global businesses and a series of landmark opening-up measures. For more information, visit www.hnftp.gov.cn.

Media Contact

Amelia Zhou
amelia@hnftp.gov.cn