Global business executives have expressed optimism about the new opportunities afforded by the newly-launched special customs operations in China's southern tropical island province of Hainan, hailing the positive impact it will have in expanding economic and trade cooperation and boosting access to the vast Chinese market.
China on Thursday launched island-wide special customs operations in the Hainan Free Trade Port (FTP), making it the world's largest FTP by area, allowing freer entry of overseas goods, expanding zero-tariff coverage and more business-friendly measures.
International business leaders have highlighted Hainan's growing market appeal and the practical benefits the new policy will bring, with foreign companies expected to enjoy a business environment more closely aligned with international standards, with lower tax and production costs, and broader access to service sectors like healthcare and education.
Charles Delapalme, CEO and President of French liquor brand Hennessy, emphasized the island's strategic importance in increasing brand exposure, citing Hainan's popularity as a tourism and shopping destination.
"Hainan has been a very important market for us. We have 10 stores at present, some of them are very, very big. One of our biggest stores is actually in Hainan. For us, it's very important because when people are on vacation, they have more time to spend in the store, to discover the product, to discover the brand. And for us, it's very, very important to be present here with a great showcase of our products," said Delapalme.
Meanwhile, Willie Tan, CEO of Skechers China, the Republic of Korea and Southeast Asia, expressed readiness to engage with the new development plans and hopes the footwear company will benefit from the initiative.
"The Chinese government is developing a new model and we hope that we can be part of it. We are ready with our product. We are ready with our infrastructure. We're excited to see that be implemented," he said.
Rainer Kern, chief financial officer of German cleaning equipment and systems manufacturer Karcher's China division, pointed to the significant advantage of freer capital flow under the new framework.
"Besides the customs operations, what is maybe more important for businesses is also the freer flow of capital because this is combined with the free trade zone. So in the future, companies like us will be able to have faster exchange with other currencies, RMB to foreign currencies depending on market rates, of course. But there's a more free flow policy of capital in Hainan and also cross-border capital free flow, this will be also for us a major benefit and also I think for all other companies coming to Hainan to make use of this free trade zone and especially they add [many] other opportunities," said Rainer.
Hainan's potential as a major hub for cooperation has also been recognized by analysts.
Maarij Farooq, deputy editor-in-chief of the Pakistan Economic Network and the Daily Ittehad Media Group, noted how the wider business community in neighboring countries will gain from the increased efficiency of the Hainan FTP.
"The streamlined custom policies would ultimately benefit the business community. The efficiency will be much higher, and it will definitely benefit the neighboring countries who want to do business with China, and it will be a great opportunity for them. And one should keep this thing in mind that the accuracy and the efficiency of China is not only in custom clearance but in general we have witnessed over the past 40 to 45 years has been great," said Farooq.
He further suggested that the innovative practices in Hainan could serve as a model for others to follow.
"The Hainan special customs will also benefit and streamline the system as well. The digital verification system, the inspection, the smart custom management. It will pave the way for better partnerships for the longer run. And I feel that this is something which is very much adaptable. And the idea of Hainan customs services and the idea of the special Hainan customs policies, I think it should be adopted by many countries in the world," the journalist added.
The move is widely seen as a landmark in China's efforts to promote free trade and expand high-standard opening-up amid rising protectionism worldwide.
Int'l business executives express optimism about new opportunities in Hainan
