Operations China has taken a major step in redefining its opening-up strategy with the launch of island-wide special customs operations at the Hainan Free Trade Port (FTP) on December 18, signaling a shift from “catching up” to taking a leading role in global economic integration.
President Xi Jinping has repeatedly emphasized that China’s opening-up is entering a new stage, focused on higher standards, deeper institutional reforms and greater global engagement.
The move comes at a time of heightened geopolitical tensions and global economic uncertainty, underscoring Beijing’s commitment to advancing high-level opening-up and setting new benchmarks for the country’s modernization drive. Officials and analysts say the impact of the Hainan initiative will extend far beyond the island, contributing to high-quality development during China’s 15th Five-Year Plan period (2026–2030) and injecting new momentum into global growth.
More than a routine policy adjustment, the island-wide customs operations represent a significant institutional leap aimed at aligning Hainan FTP with the world’s most competitive free-trade hubs. A central feature of the reform is the substantial expansion of zero-tariff treatment, a hallmark of internationally recognized free ports. The number of zero-tariff goods will increase from 1,900 tariff lines to about 6,600, expanding coverage from 21 percent to 74 percent.
The change is expected to significantly improve market access, streamline eligibility requirements and benefit a wider range of enterprises and industries.By implementing island-wide special customs operations, Hainan FTP is positioned as a testing ground for China’s next phase of opening-up. The reforms are designed to enhance policy certainty, deepen openness and foster a more competitive business environment.
As these measures take effect, Hainan is set to emerge as a key gateway for China’s engagement with the global economy and a model for future high-level opening-up initiatives.
