China inaugurated island-wide special customs operations in the Hainan Free Trade Port (FTP) on Thursday, marking a pivotal step in its strategy to establish the tropical province as a flagship hub for international commerce. Vice Premier He Lifeng declared the FTP's readiness for this transformative phase during a ceremony in Haikou, emphasizing its role in advancing China's high-standard opening-up amid global economic headwinds.
The newly launched measures eliminate tariffs on most overseas goods entering Hainan's 30,000-square-kilometer special customs supervision zone – the world's largest FTP by land area. The reforms also introduce streamlined clearance processes and expanded zero-tariff coverage, creating new opportunities for cross-border trade just 90 minutes by air from Hong Kong.
"This milestone accelerates our blueprint for freer movement of goods, capital, and talent," stated He, who also serves on the Political Bureau of the Communist Party of China Central Committee. The vice premier outlined parallel plans to strengthen risk management systems while maintaining reform momentum in key sectors.
Economic analysts highlight Hainan's strategic positioning as both a testing ground for innovative policies and a gateway linking mainland markets with Southeast Asia. The FTP's unique tax structure – featuring reduced corporate rates and simplified compliance – has already attracted over $12 billion in overseas investment since 2025's third quarter, according to provincial data.
The customs overhaul coincides with China's broader push to counter protectionism through multilateral engagement. As global trade growth remains sluggish, Hainan's reforms offer tangible mechanisms for international businesses to access Chinese consumer markets while benefiting from streamlined Asia-Pacific supply chain integration.
