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Source: People's Republic of China – State Council News
Hainan after the launch of independent customs operations
Exclusive interview with Hainan Provincial Party Secretary Feng Fei
On December 18, 2025, the Hainan Free Trade Port (HFTP) officially launched its independent customs operations regime across Hainan Island. A month has passed since then, and to mark the occasion, journalists from the China Foreign Languages Publishing and Distribution Administration (CICG) interviewed Feng Fei, Secretary of the CPC Hainan Provincial Committee and Chairman of the Standing Committee of the Hainan Provincial People's Congress. In the interview, he summarized the initial results of the Hainan HFTP's new operation and discussed Hainan's key advantages, development potential, and the opportunities it offers the world.
CICG: The launch of independent customs operations on the island is considered a key moment for Hainan. How do you think this step will strengthen China's connection to the global economy? What new role will it allow Hainan to play in the global trading system?
Feng Fei: Chinese President Xi Jinping noted that the official launch of the independent customs regime at the Hainan Free Trade Port on December 18, 2025, is a significant step by China to steadily expand high-level opening-up and promote the development of an open global economy. This will undoubtedly have a significant and far-reaching impact both domestically and internationally.
The independent customs regime is not a measure of self-isolation, but a transition to a higher level of openness. The establishment of the Hainan Free Trade Zone pursues the strategic goal of transforming the island into a key outpost of China's openness in the new era. Its key mission is to help the country shape a new development architecture where internal and external flows seamlessly reinforce each other and function effectively, ensuring China's smoother and stronger connections with the global trading system. This will create new, additional opportunities for the improvement and growth of the global trading system.
Following the introduction of independent customs operations, the Hainan Free Port will become a driving force for China's high-level opening up. The implementation of a range of measures—such as zero import duties, preferential tax rates, a simplified tax system, as well as maximum liberalization and convenience in trade, investment, cross-border capital flows, the movement of people, transportation, and the secure and orderly flow of data—will connect Hainan with China's unified domestic market and the international market. Hainan will thus become a vanguard for the country's deeper integration into the global economic system. It will not only enhance openness focused on the movement of goods and factors of production but will also actively promote openness at the institutional level. By complying with international rules, regulations, management practices, and standards, Hainan will position itself as a strategic hub where domestic and international dual circulation converges.
To achieve this goal, we are rapidly creating what we call "two bases," "two hubs," and "two networks." By "two bases," I mean a base with headquarters for Chinese companies entering overseas markets and a base for foreign companies entering the Chinese market. By "two hubs," I mean the international transportation hub of the New Western Land and Sea Corridor and a regional aviation hub focused on the Pacific and Indian Oceans. "Two networks" are a network for international trade and economic interaction and a network for international people-to-people exchanges and cooperation. These measures are aimed at transforming Hainan from a regional trading center into a comprehensive trade hub that will effectively connect domestic and international markets, with a particular focus on Southeast Asia and other regions.
At the current stage, the key task is to ensure three types of interaction. First, this concerns the interaction of production and supply chains. By fully leveraging the policy advantages of the Free Trade Zone, we will promote the cross-border flow of production factors and act as a link between domestic and international production and supply chains. This will allow investors, using the Hainan Free Trade Zone as a high-level platform, to more competitively attract production factors from around the world and allocate global resources. Second, coordinated interaction between regions is essential. We must actively participate in and support the construction of China's unified national market, deepen coordinated development with Guangdong Province and the Guangdong-Hong Kong-Macao Greater Bay Area, and deepen cooperation with the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Yangtze River Economic Belt. Third, we must ensure international interaction. Deepen our engagement in the Belt and Road Initiative, expanding cooperation in trade, economics, investment, industry, finance, education, and humanitarian areas. Particular emphasis should be placed on developing a deeper partnership with Southeast Asian countries, particularly in tropical agriculture, green energy, and digital trade.
CICG: The Hainan Free Trade Port has been operating under independent customs operations for a month now. What key statistics or specific examples can most convincingly demonstrate to the international community the true effectiveness of its operations? What were the biggest challenges encountered initially? And how did Hainan Province overcome them?
Feng Fei: Data from various parties indicate the stable and orderly operation of the independent customs operation regime islandwide. A good start has been made, with clear achievements in logistics, passenger traffic, and business concentration. First, the policy measures are having a noticeable effect. From December 18 to January 17, the first month after the independent customs operation regime was implemented, the number of entities taking advantage of the zero-duty policy increased by more than 10,000 and continued to grow steadily. The value of imported goods under the duty-free regime amounted to 750 million yuan, an increase of 38.9% compared to the same period last year. Local companies, hospitals, and research institutes in Hainan can also use equipment and materials imported at zero customs duty. Tourism, transportation, and other companies will also be able to take advantage of the duty-free regime for the import of aircraft, ships, and automobiles used in their operations. Thanks to a comprehensive set of measures, local businesses have expanded their production chains and increased profitability. Sales at duty-free shops for those leaving the island showed significant growth: revenue reached 4.86 billion yuan, an increase of 46.8%, and the number of purchases exceeded 745,000, an increase of 30.2%.
Secondly, Hainan's attractiveness has significantly increased in light of its openness. Air traffic, with 32,800 flights on the island, increased by 9.8% compared to the previous reporting period. Passenger traffic through Hainan's international border crossings exceeded 289,000 (a 31.3% increase year-on-year), including 82,000 visa-free entries (a 64% increase). International vessel traffic also increased by 19.6%. The province registered 26,800 new business entities, with the share of new enterprises in the total number increasing from 42% (before the introduction of independent customs operations) to almost 80% now. The number of new foreign enterprises increased by 13% year-on-year, and the number of registered foreign trade firms increased by more than 5,100, indicating an improvement in the economic structure. Siemens Energy has established a new enterprise in the province. Hainan became China's first gas turbine assembly base and service center. The island also licensed the first hospital built entirely with foreign investment, the Boao Fulong Cardiology Hospital, and Kazakhstan's Scat Airlines launched the country's first international flight using seventh-freedom rights, from Sanya to Prague. More and more entrepreneurs are setting up companies here, demonstrating the continued popularity of developing in Hainan.
Third, positive momentum is maintained both within the province and internationally. The implementation of Hainan's independent customs regime preferences has brought issues of zero tax duties, trade and economic cooperation, culture, sports, and tourism to the forefront of international and national media and public attention. I would like to note that socially significant issues, including countering smuggling and environmental protection, are under reliable control. The priority task in the next stage is to shift the focus from institutional foundations to their improvement and tangible impact.
The Hainan Free Port Authority (FPTA) has operated under the principle of "freer access on the first line, regulated access on the second line, and freedom within the island." The "first line" is the customs border between the Hainan Free Port Authority (FPTA) and foreign countries and regions, while the "second line" is the customs border between the Hainan Free Port Authority (FPTA) and mainland China. Essentially, simplified entry and exit regulations apply on the first line, while targeted controls are exercised on the second line for goods freely entering from the first line. Within the island itself, relatively free movement of all factors of production is permitted.
At the current stage, the main challenge is how to combine effective and targeted second-line control with unimpeded trade flow, while guaranteeing both security and convenience of customs clearance. Therefore, we are striving to find a balance between flexibility and control by implementing a single customs window system, remote and distributed control, smart surveillance, and a rating system. At the same time, we are strictly combating smuggling, violent terrorism, cyber fraud, prostitution, gambling, and drug trafficking. The goal is to create a safe, stable, and transparent business environment so that international investors can safely operate in Hainan.
CICG: Robust protection of intellectual property rights is one of the key factors considered by foreign investors. What specific measures has Hainan Province implemented to comply with international trade and economic regulations and protect intellectual property rights?
Feng Fei: A favorable environment for intellectual property rights protection is an important factor in attracting foreign investment. In recent years, Hainan Province has been consistently working to establish a robust intellectual property protection system in the region, ensuring equal and non-discriminatory treatment of the intellectual property rights of all economic entities. Authorities strictly suppress violations in this area and are making significant efforts to position the province at the forefront of intellectual property protection. In 2025, Hainan ranked first in the country for the fastest growth rate in the Intellectual Property Development Index.
In the area of legal guarantees, the state adopted the Hainan Free Trade Port Law of the People's Republic of China, Article 23 of which specifically provides for the protection of intellectual property rights. Hainan Province also developed and implemented related intellectual property protection regulations and established the Hainan Free Trade Port Intellectual Property Court, thereby ensuring robust legal guarantees for intellectual property protection at the legislative level.
In terms of platform development, the Yazhouwan Technopolis Intellectual Property Special Zone has been established in Sanya, and the Integrated Intellectual Property Service Demonstration Zone has been opened in Haikou. These zones focus on priority and core industries such as southern China breeding, deep-sea technology, commercial aviation, biomedicine, and mechanical engineering. These cities have also established two support consultation centers to handle overseas intellectual property disputes.
In terms of international cooperation, international intellectual property exchanges are being conducted through the Yazhouwan Technopolis Intellectual Property Special Zone and platforms such as the Boao Forum for Asia. Project collaboration with the World Intellectual Property Organization (WIPO) is also being strengthened in the areas of intellectual property protection, personnel training, and the development of a green and low-carbon economy.
With a strong focus on high standards of international trade and economic rules, documents such as the "Twenty Steps for Implementing the RCEP" and the "Sixteen Measures to Deepen Cooperation with RCEP Member States" have been consistently adopted. Guided by the rules of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and similar agreements, pilot testing is underway and the development of a system of rules that meets international standards is being accelerated, including in areas such as intellectual property protection and fair competition.
Strict compliance with intellectual property laws is a priority for Hainan Industrial Park, which we solemnly commit to fulfilling. We will continually strive to improve the quality of our work in this area.
CICG: How can Hainan ensure special protection for its unique ecological environment in the face of rapid development? How can environmental protection red lines be reconciled with economic growth?
Feng Fei: Hainan is China’s precious tropical island, the ever-blooming garden of the Chinese nation and a paradise for domestic and foreign tourists. We firmly adhere to the principle of green-based development of the province, striving to combine environmental protection, green development and improving the lives of local people. In particular, we pay attention to work in the following three areas. First, we guarantee to improve Hainan’s ecological environment and prevent it from deteriorating. We have clearly set the goal of maintaining environmental quality at the forefront of the entire country: the annual average concentration of PM2.5 particles has remained stable at 12 µg/m3 for three consecutive years, and the proportion of marine area with good water quality in coastal areas has reached 99.7%. We pay special attention to preserving the pristine and integrity of wildlife, making great efforts to protect and restore tropical rainforests, mangroves, coral reefs, seabed vegetation and other types of ecosystems. Hainan became the first place in the country to develop and implement a provincial strategy and action plan for biodiversity conservation (2023–2030), and occupies a leading position in the country in the number of biological species and endemic groups. Secondly, we are consistently implementing landmark projects within the national pilot zone of ecological civilization according to the “2+N” model. These significant projects serve as an engine for comprehensively improving the quality and level of construction of the national pilot zone of ecological civilization. Hainan Rainforest National Park represents the most concentrated, diverse, best-preserved and longest continental island tropical forest area in China, with a biodiversity index of 6.28, comparable to the Amazon rainforest in Brazil. The number of Hainan gibbons, the world’s rarest and most endangered primate species, has increased from 4 groups of 30 individuals to 7 groups of 42 individuals. We are accelerating the construction of a low-carbon island: the share of electricity generation and installed capacity from clean energy has reached 70.4% and 87.2%, respectively. Hainan was the first in the country to implement a plan to completely ban the sale of fuel cell vehicles by 2030, and the province currently ranks 1st and 2nd in the country in terms of market penetration and fleet of new energy vehicles. The Boao Near-Zero Carbon Demonstration Zone has been successfully established, and new landmark projects such as the “Zero Waste Island” and the China-EU Environmental Digital Innovation Cooperation Zone (Baoting-Li-Miao Autonomous County) have been introduced. Third, we will ensure the sustainable implementation of the concept of “green mountains and emerald waters are priceless treasures” and “double carbon goals”. The overall desire is to make every effort to break the link between high-quality economic development and carbon emissions, reducing the carbon footprint of Hainan products and services, increasing their competitiveness in the global market. The implementation approach can be summarized as the “trifecta” principle: achieve a “triple synthesis” of advanced green and low-carbon development technologies, global best practices and best global policies and systems; achieve the “three goals” – environmental, social and economic; correctly define the “three balances” – the interests of enterprises, ordinary citizens and the state. On the path of implementation, it is necessary to accelerate the greening of industry and industrialization of ecology, deepen pilot projects on the value realization mechanism of environmental products, constantly expand the ways of implementing the concept of “green mountains and emerald waters are priceless treasures”, improve the level of construction of national parks as “reservoir, money box, granary and carbon sink”, so that people can enjoy green work, eat organic food and gain income from tourism development, realizing the principle of “being in the treasure house” native land, reap its abundant fruits.” We comprehensively plan systems for optimizing the carbon footprint of industry, reducing carbon emissions in residential areas, enhancing carbon absorption and sequestration, smart carbon management and long-term carbon regulation, actively exploring and promoting research, practice and international cooperation on blue carbon standards, accelerating the comprehensive green and low-carbon transformation of economic and social development.
Hainan is a treasure not only for its residents but for the entire Chinese nation and for all of humanity. We have always considered our favorable ecological environment our greatest asset and most valuable asset, protecting it like the apple of our eye. We are comprehensively promoting high-quality development and a high level of protection, striving to transform Hainan into an important showcase for the practical achievements of Xi Jinping's thought on an ecological civilization.
CICG: How does the opening-up policy benefit ordinary Hainan residents? What measures is the government taking regarding price controls, the labor market, and consumer diversity to ensure that the population's living standards are in line with the opening-up process?
Feng Fei: A free trade port with Chinese characteristics is a port built and accessible to everyone, promoting prosperity for all. An important criterion for assessing the success of this project is the extent to which residents perceive real benefits. The people are always our main guideline, we make every possible effort to improve the living conditions of the population during the development process, so that every resident receives real dividends from the construction of a free trade port. For example, in terms of increasing income, about 80% of Hainan’s land is in rural areas, 40% of the resident population also lives in rural areas, 20% of GDP is generated from agriculture. Thus, resolving the issue of the “three components” of the agricultural sector, and, in particular, the issues of increasing peasant incomes, is the most important task in the construction of the port. We effectively use the free trade port openness policy, as well as government measures to strengthen the agricultural sector, improve the well-being of rural residents and increase their income. Thanks to this, over the years, the growth rate of disposable income of urban and rural residents exceeds the growth rate of GDP, the income of rural residents grows faster than the income of urban residents, and the income of rural residents who have escaped poverty increases at an even higher rate than the average for rural areas. The income ratio of urban and rural residents has fallen to below 2:1. In terms of employment, the free trade port’s openness policy and favorable investment environment have attracted a large number of high-level enterprises to Hainan, which has also created many high-quality jobs. We actively carry out special events to improve the quality of employment. In the first three quarters of 2025, the number of new jobs in cities across the province increased by 8.4% year on year, and the labor market remains stable and positive. Speaking of pricing policy, a mechanism was created to balance the volumes of production, transportation, sale and storage of the most important consumer goods, measures were strengthened to ensure the production and supply of vegetables and grains, interregional distribution and supply of essential goods was strengthened, and direct interaction on production and sales was established between district and city companies responsible for the “food basket” and manufacturers. These measures help keep prices of important consumer goods at reasonable levels. In terms of consumption, we strive to accelerate the process of transforming the province into an international tourism and consumption center, holding the China International Consumer Products Expo for five consecutive years, consistently implementing the policy of upgrading such products, and continuing to work on the “three pillars of consumption” such as duty-free trade, medical and educational services industries. We are optimizing the duty-free shopping policy for Hainan residents when leaving the island, and accelerating the implementation of a zero-tariff regime on imported products, so that Hainan residents can receive quality goods and services from around the world at home. Thus, openness brings real benefits to everyday life.
CICG: What important information would you like to convey to foreign investors and entrepreneurs who are still watching from the sidelines and assessing the situation?
Feng Fei: As mentioned earlier, less than a month after the introduction of the independent customs regime, results such as the free circulation of goods, convenient movement of people, and concentrated flows have already become evident. To date, 22 foreign companies from the Fortune Global 500 have already established themselves in Hainan, a total of 131 parent companies have opened representative offices here, investment has come from 180 countries and regions, and the overall volume and growth rate of foreign direct investment are leading the country. We clearly see that Hainan is emerging as a new outpost of China's openness, a new center of gravity for mutually beneficial regional cooperation, and a new driver of economic globalization.
By choosing Hainan, you choose opportunities; by investing in Hainan, you are investing in the future. There is good reason for this assertion. First, an unprecedented level of openness. Hainan Free Trade Port is focused on the world’s highest standards of openness, implements a policy of liberalization and simplification of procedures in the field of trade and investment in line with international standards, and widely implements a zero tariff regime: the range of goods with zero customs duty rates has been increased to 6637 items, which is 74% of all tariff categories. Hainan also has the country’s shortest negative list governing the entry of foreign investment into the Chinese market. Hainan was the first in the country to implement a negative list in the field of cross-border trade in services, adopted 22 special measures to expand market access, and was the first to open up such areas as value-added telecommunications services, educational, medical and legal services to foreign capital and companies. Secondly, a solid foundation has been laid here for the development of industrial production. Based on Hainan’s opening-up policy, its unique resources, and taking into account the new round of scientific and technological revolution and industrial transformation, we are promoting the replenishment, extension and upgrading of industrial chains in the leading four industries, such as tourism, modern services, high-tech manufacturing and high-efficiency tropical agriculture. In parallel, we are actively developing strategically important emerging industries such as seed production, deep-sea resource development, commercial space, green low-carbon technologies and the digital economy. At the same time, we are laying the foundation for the industries of the future, including biomanufacturing, hydrogen energy, brain-computer interfaces, and embodied artificial intelligence. Our goal is to build a modern, multi-level and rationally structured production system, which is distinguished by advanced business models and pronounced specialization. As part of this large-scale transformation process, a truly enormous number of unique investment opportunities are opening up. Third, the business environment is steadily improving. We are accelerating the creation of a first-class business environment based on market principles, the rule of law and international standards. To systematically solve this problem, a special government body has been created, responsible for its daily improvement. We apply a unified approach to domestic and foreign investors, guaranteeing them equal conditions for fair competition. A diversified mechanism for resolving international commercial disputes based on the “single window” principle has also been created, which organically combines the procedures of mediation, arbitration and litigation. At the same time, we are deepening our efforts to create territories with a special legal status that provide increased security for doing business.
In conclusion, we sincerely invite investors from around the world to invest and develop businesses in Hainan. We will make every effort to provide comprehensive support and create an environment conducive to the successful implementation of projects, the recruitment of qualified personnel, and sustainable growth. Let us work together to seize the unique opportunities offered by building an open global economy.
Please note: This information is raw content obtained directly from the source. It represents an accurate account of the source's assertions and does not necessarily reflect the position of MIL-OSI or its clients.
