This Thursday, December 18, 2025, China’s Hainan Free Trade Port (FTP) will officially begin island-wide special customs operations, marking a landmark step in aligning with high-standard international economic and trade rules. Beyond its regional impact, this move signals a new phase for China’s network of 22 free trade zones, with ripple effects for global commerce.
From Pilot to Nationwide Network
China’s FTZ program kicked off in 2013 with the Shanghai Pilot Free Trade Zone. Over the past 12 years, it has expanded through seven rounds to cover coastal, inland and border regions, creating a multi-layered framework for opening up. Coastal zones in Shanghai, Zhejiang, Guangdong, Tianjin and Fujian focus on advanced manufacturing and modern services, inland hubs in Henan, Sichuan and Shaanxi drive logistics and industry upgrades, and border zones in Guangxi, Yunnan and Heilongjiang strengthen cross-border trade.
Powering High-Quality Growth
Each FTZ has become an engine of innovation. In eastern China, Zhoushan’s oil and gas cluster hosts over 12,000 enterprises, and Tianjin has grown into the world’s second-largest aircraft leasing hub. In central China, Hubei leads optical communications R&D with more than 16,000 companies, while Jiangsu’s biopharma output nears 300 billion yuan. On the borders, Yunnan’s Honghe area is building a cross-border e-commerce zone for South and Southeast Asia, and Urumqi and Suifenhe are emerging as innovation and agricultural processing centers.
Institutional Innovation in Action
Reforms tested in FTZs often become national policy. Shanghai introduced China’s first negative list for foreign investment, cutting restricted items from 190 to 27. Hainan pioneered a negative list for cross-border services, covering finance, professional services and education. Starting December 18, most overseas goods entering Hainan will enjoy zero tariffs and expedited clearance, while a customs boundary with the Chinese mainland ensures fair trade and security.
From 2013 to 2023, the 22 FTZs generated over 300 institutional innovations replicated nationwide and contributed nearly one-fifth of China’s foreign trade in 2024. With Hainan FTP’s new customs regime, China’s FTZ strategy is shifting from experimental testbeds to high-level platforms of openness, injecting fresh momentum into a more open, rules-based economy.
For global entrepreneurs, investors and travellers, the expansion of FTZs offers new avenues for trade, innovation and cooperation. As these zones evolve, they will shape the next chapter of China’s economic engagement with the world.
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Hainan FTP marks new phase for China's network of 22 free trade zones
cgtn.com
