As China prepares to transition from its 14th Five-Year Plan (2020-2025) to the upcoming 15th edition, President Xi Jinping’s recent visits to Hainan and Guangdong provinces highlight a strategic commitment to high-standard opening up as the cornerstone of high-quality development. These coastal powerhouses are shaping China’s economic future while strengthening global partnerships.
Hainan: Bridging China and ASEAN Markets
The December 18 launch of island-wide special customs operations at the Hainan Free Trade Port (FTP) marks a pivotal moment in China’s opening-up strategy. President Xi emphasized that this initiative demonstrates China’s dedication to fostering an open world economy. The FTP has already attracted over 70,000 professionals since 2018 and implemented 80+ regulatory reforms, with its four pillar industries now contributing 70% of provincial GDP.
New shipping routes like Yangpu–Chancay are revolutionizing trade flows, slashing delivery times for products ranging from Hainan tilapia to Peruvian avocados. Kuang Xianming of the China Institute for Reform and Development notes the FTP’s growing role in China–ASEAN cooperation, enhanced by cross-border settlement systems through multi-functional free trade accounts.
Guangdong: Engine of Technological Transformation
In Guangdong – China’s economic powerhouse accounting for 39% of national trade growth – foreign trade surged to 9.11 trillion yuan ($1.3 trillion) in 2024. The province saw 33.7% year-on-year growth in new foreign-funded enterprises, with global corporations like BASF and Tesla committing to 1,933 projects worth 2.26 trillion yuan in the Greater Bay Area (GBA).
President Xi urged Guangdong to lead in developing "new quality productive forces," particularly through tech-industrial integration. The GBA’s success in attracting $600 billion in foreign capital underscores its position as a global innovation hub, aligning with China’s vision for internationally competitive modern industries.
As China charts its 15th Five-Year Plan, these developments reaffirm that reform and opening up remain vital drivers of both domestic progress and global economic connectivity.
