China's Hainan Free Trade Port (FTP) has established a preliminary policy and institutional framework since the release of a master plan in June 2020, an official with the country's top economic planner said on Wednesday.
In June 2020, China announced to build the whole of Hainan Island into a globally influential and high-level free trade port by the middle of the century.
Speaking at a press conference in Beijing, Wang Changlin, deputy director of the National Development and Reform Commission (NDRC), said that since then, series of opening-up policies have been issued to create a "foreign investor-friendly" business environment in Hainan.
"The movement of people, goods, capital, and data in and out of Hainan has become much more convenient. Citizens from 85 countries can now enter Hainan visa-free. The total tonnage of international ships registered at 'China Yangpu Port' has risen to second in the country. Funds can be freely and legally transferred between multi-functional free trade accounts and overseas accounts, and outbound data is managed through a negative list. The three major sectors - goods trade, services trade, and investment - are opening up at a faster pace. We have introduced zero-tariff policies for imported raw materials, vehicles, yachts, and production equipment. The country's first negative list for cross-border services trade has been implemented, along with 22 special measures to ease market access. The management under negative list for foreign investment access enjoys the highest level of openness nationwide," said Wang.
"Tax incentives for both companies and individuals have been strengthened, with a 'dual 15 percent' income tax rate policy resulting in tax reductions of over 31 billion yuan (4.32 billion U.S. dollars) for enterprises and 17 billion yuan for individuals. The pilot program for duty-free value-added processing has expanded to the entire island, and the annual offshore duty-free shopping quota has increased to 100,000 yuan per person. Legal protections have also been enhanced, with the Hainan FTP Law and over 40 supporting regulations ensuring the implementation of reforms and innovations. With these policies in place, the Hainan FTP is developing rapidly and steadily, achieving important milestones and laying a solid foundation for the launch of island-wide independent customs operations," he said.
The Hainan FTP will officially launch the island-wide independent customs operation on Dec 18, 2025, as approved by the Communist Party of China Central Committee, according to the NDRC.
China's Hainan FTP policy system taking shape: official
