In the heart of Hainan, a small coffee bean is brewing big change. For Huang Haiwen, a former factory floor inspector turned deputy to the National People's Congress, sourcing beans globally and selling them worldwide was once a dream whispered through firewood roasters. Today, it's becoming reality.
Since joining Xinglong Coffee in 1992, Huang has witnessed her plant evolve from smoke-filled workshops to fully automated production lines. Her drive for innovation led to the 2022 launch of the Huang Haiwen Model Worker Innovation Studio, where specialty blends took shape under her guidance. When she proposed adding green coffee beans to the Hainan Free Trade Port (FTP) positive list in early 2024, few anticipated its ripple effects.
On January 26, 2025, the Ministry of Finance expanded the Hainan FTP's zero-tariff list to include unroasted coffee. This policy cut costs for producers, widened sourcing options, and sent those tiny beans beyond the island's shores, giving life to a 30-year ambition.
Now, against the backdrop of global supply-chain disruptions and rising protectionism, Hainan is preparing for its most ambitious leap yet. On December 18, 2025, the island will officially launch special customs operations, transforming its entire territory into a special customs supervision zone.
This shift creates a framework of freer access at the first line, regulated access at the second line, and free flow within the island. Zero-tariff imports will pour in under strict controls to prevent spillover into the Chinese mainland, while goods processed in Hainan with at least 30 percent added value can enter the Chinese mainland tariff-free.
Rooted in the Master Plan for the Construction of the Hainan Free Trade Port and the Recommendations of the 20th Central Committee of the Communist Party of China, these special customs operations are the centerpiece of the province's 15th Five-Year Plan. They pair large-scale liberalization with precise regulatory safeguards, setting a potential blueprint for future FTZs worldwide.
Supporting these customs reforms is a parallel revamp of Hainan's tax system: zero tariffs on most imports, dual 15 percent corporate and personal income tax incentives, and a streamlined retail sales tax at the final consumption stage. Together, these measures aim to lower costs, attract investment, and boost higher-quality imports.
As Hainan gears up to become the world's largest free trade port by area, its quest for openness combines the ambition of global FTZ models with Chinese characteristics. From the coffee workshop to the global trading stage, the island's innovators—like Huang—are at the forefront of opening a new chapter in China's economic modernization.
When coffee beans from Xinglong Coffee land in cafes from Milan to Melbourne, they'll carry a story far bigger than a cup of coffee. They'll embody Hainan's pioneering spirit in forging the next era of openness and economic integration.
Reference(s):
Hainan special customs operations: China's next era of opening-up
cgtn.com
