Hainan's special customs operations boost trade, industrial development: official

The island-wide special customs operations in China's Hainan Free Trade Port (FTP) have boosted trade and industrial development, said an official of the Ministry of Finance on Friday.

Speaking at a press conference in Beijing, Wu Jingfang, deputy head of the Tariff Department of the Ministry of Finance, briefed the reporters on results of the special customs operations in Hainan.

"Imported zero-tariff goods are exempt from import duties, value-added tax, and consumption tax, significantly reducing import costs for businesses and promoting greater liberalization and facilitation of trade in goods. Since the launch of island-wide special customs operations [on Dec. 18 last year], the value of imported zero-tariff goods reached 857 million yuan by January 27, a year-on-year increase of 2.43 times, encompassing various industries including chemicals, mineral product manufacturing, and medical care. Tariff exemptions totaled 129 million yuan, a year-on-year increase of 2 times. Over 10,000 enterprises applied for enjoying benefits from the zero-tariff policy, and more than 5,700 new foreign trade enterprises completed registration in Hainan. Looking ahead, there is still significant potential for further expanding the import of zero-tariff goods," said Wu.

On Dec. 18, 2025, China launched island-wide special customs operations in the Hainan FTP, the world's largest FTP by area, allowing freer entry of overseas goods, expanding zero-tariff coverage, and introducing more business-friendly measures.

Officials describe the special customs system as offering "freer access at the first line," referring to freer trade between Hainan and areas outside China's customs borders, and "regulated access at the second line," which involves applying standard customs controls for goods moving from Hainan to the mainland.

The share of zero-tariff products in the Hainan FTP has been raised from 21 to 74 percent, expanding the list of related items from 1,900 to over 6,600.

Zero-tariff goods processed in Hainan may be sold to the mainland duty-free if their local processing generated an added value of 30 percent or more.

Hainan's special customs operations boost trade, industrial development: official

Hainan's special customs operations boost trade, industrial development: official

U.S. President Donald Trump announced on Friday that he is nominating Kevin Warsh, a former Federal Reserve governor, to be the next chair of the central bank.

The nomination, which came two days after the Fed's decision to keep the federal funds rate unchanged at 3.5 percent to 3.75 percent, needs to be confirmed by the U.S. Senate.

"I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best," said Trump in his Truth Social post announcing the selection.

"On top of everything else, he is 'central casting,' and he will never let you down," Trump said.

Warsh, 55, currently serves as the Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution and a lecturer at the Stanford Graduate School of Business. He is also a partner of Stanley Druckenmiller at Duquesne Family Office LLC.

Warsh became the youngest Fed Governor at 35, and served as a member of the board of governors of the Federal Reserve System from 2006 until 2011.

Picking Warsh likely wouldn't ripple markets because of his past Fed experience, local media reported on Friday. Wall Street holds that Warsh wouldn't always do Trump's bidding.

Fed Chair Jerome Powell was nominated by Trump in November 2017. His second four-year-term as Fed chair will end in May 2026.

Trump nominates Kevin Warsh as next Fed chair