A coffee entrepreneur in south China's Hainan Province is harnessing policy benefits from the Hainan Free Trade Port to transform a passion for coffee into a globally connected business.
Tong Shuo, a long-time coffee enthusiast, has lived in Wanning City for a decade and visited more than 200 coffee shops across the region. Inspired by Hainan's vibrant coffee culture, he decided to create something different from a traditional cafe, expanding into coffee processing and international trade.
In October last year, Tong's company was selected as one of the pilot enterprises under the Hainan Free Trade Port's value-added processing policy, which allows eligible products to enjoy post-processing tariff exemptions.
As one of the first companies to capitalize on the policy, Tong's team sourced green coffee beans directly from Panama -- a process fraught with challenges, including delays due to unfamiliarity with international trade procedures and a near return of the shipment to its country of origin.
It took nearly three months in total, but in the end, they made it. The successful shipment opened up a new business model, significantly reducing costs and improving competitiveness.
"It unexpectedly unlocked a major new business opportunity for us. Our landed cost was 1,100 yuan per kilogram, while the domestic wholesale price for green coffee beans at the same time was nearly 1,700 yuan per kilogram. After 48 percent value-added processing, we sold the beans to Fujian at around 1,580 yuan per kilogram, but the same product would cost nearly 2,500 yuan if sold domestically. It's precisely the tariff exemption under the Hainan Free Trade Port's value-added processing policy that has encouraged us to expand outward," said Tong.
Tong said his company has now established a complete industry chain, covering sourcing, processing, and trading. New shipments are already en route, with more than 10 tons of coffee beans expected to arrive before the Chinese Lunar New Year in February 2026.
Looking ahead, Tong believes that further policy implementation, including "zero-tariff" treatment after the island-wide customs clearance, will make trade even more efficient and convenient.
"We've made many efforts and innovations in integrating coffee with culture. This year, we launched the Variety Coffee Culture Year, inviting Italy's latte art champion to perform for our customers. We also hosted a barista masters competition in Wanning, drawing nearly 400 top competitors from around the world. Thanks to the visa-free policy of the Free Trade Port, this will further support our goal of hosting more diverse international competitions in the future," he said.
Hainan free trade policies help coffee factory unlock global opportunities
