Hainan's transformation into a global trade powerhouse accelerated this week as officials revealed plans to expand preferential tax policies at the Free Trade Port (FTP). Cai Qiang, deputy director of the Hainan FTP Working Committee and National People's Congress deputy, announced on Saturday that over 80 additional product categories will join the zero-tariff list following the port's transition to independent customs operations this year.
The reforms mark a critical step in establishing what Cai described as "a tax system designed specifically for Hainan's unique position as China's most open economic hub." Under the new structure, businesses operating in key industries like biotechnology, green energy, and luxury goods manufacturing will benefit from reduced corporate income tax rates as low as 15%.
Analysts suggest these changes could unlock $4 billion in annual trade value by 2025, positioning Hainan as a gateway for international companies seeking access to Asian markets. The expanded tariff exemptions apply to raw materials, capital goods, and consumer products ranging from aviation components to premium coconut-based cosmetics.
These developments align with Beijing's 2025 timeline for establishing Hainan FTP as a fully functional free trade zone, coinciding with the island's growing status as both a tropical tourism hub and high-tech investment destination.
