Imagine stepping onto the sun-soaked island of Hainan and finding yourself at the heartbeat of a global trading experiment. This year marks the launch of Hainan Free Trade Port's full customs closure operation, a move designed to simplify trade, slash tariffs, and skyrocket economic connectivity.
Five years after Beijing unveiled the Master Plan for the Construction of Hainan Free Trade Port, the island has transformed into a dynamic hub of reform and high-quality growth:
- Foreign investment grew at an average annual rate of 36 percent, drawing partners from 158 countries and regions.
- Trade openness doubled from 17.3 percent in 2018 to 35 percent in 2024, fueling a 20 percent jump in total import export value to 277.65 billion yuan.
- Exports topped 100 billion yuan for the first time at 106.22 billion yuan, up 43.5 percent, while imports reached 171.43 billion yuan, up 8.9 percent.
Aligning with top global frameworks, Hainan has strengthened ties with RCEP member states, which now account for 30 percent of its trade. Tariff concessions under RCEP have opened regional markets to Made in Hainan brands, boosting industrial cooperation across Southeast Asia.
Hainan's strategic reach extends further along the Belt and Road Initiative. In 2024, trade with BRI partners surged 41.5 percent to 167.7 billion yuan, over 60 percent of the island's total trade volume, reinforcing Hainan's role as a gateway connecting the Chinese mainland to global markets.
Underpinning this growth are four leading industries – tourism, modern services, high tech manufacturing, and tropical agriculture – which now make up 67 percent of the island's GDP, up 14 percentage points since 2018. This diversified industrial base has been key to raising Hainan's economic openness and resilience.
The new customs closure regime follows a front line opening, second line control, and free flow within the island approach. By establishing a framework of tariff free, low taxes, and simplified regulations, Hainan aims to facilitate seamless movement of goods, capital, people, and data.
As global elements flow in more freely, Hainan is set to elevate its business environment, sharpen its industrial edge, and accelerate high quality growth. The island's evolving model offers a vivid example of high level opening up – one that could inspire new trade strategies far beyond its tropical shores.
Reference(s):
Hainan Free Trade Port demonstrates China's high-level opening-up
cgtn.com
