Xinhua Commentary: Hainan Free Trade Port epitomizes China's high-standard opening-up

HAIKOU, Nov. 8 (Xinhua) -- The Hainan Free Trade Port (FTP) will launch island-wide special customs operations on Dec. 18. This will be a landmark move for China to unwaveringly expand high-standard opening-up and promote the development of an open world economy.

The launch is set to generate ample new opportunities for economic and trade cooperation between China and the world.

After the official launch, the island province of Hainan will implement a special supervision model of "freer access at the first line, regulated access at the second line, and free flow within the island." This two-tier customs system will enable freer trade between Hainan and areas outside China's customs border, while maintaining standard customs controls for the mainland.

This institutional design positions Hainan as a key pivot for China to connect with the global market. In terms of trade, the island will expand the coverage of its zero-tariff policy to 74 percent of imported goods, with further expansion planned in the future. Supported by simplified customs clearance procedures, it will improve cross-border trade efficiency, creating low-cost and high-efficiency trade advantages. Hainan is expected to become a hub for global goods to enter the Chinese market.

In terms of investment, Hainan will continue opening up sectors such as tourism, modern services, and new and high technology. Eligible enterprises and talent can enjoy preferential income tax rates that are highly attractive globally.

Over the past five years, Hainan has utilized actual foreign investment of 102.5 billion yuan (14.47 billion U.S. dollars), with an average annual growth rate of 14.6 percent, attracting investment from 176 countries and regions. This positive trend is expected to gain more steam after Hainan begins special customs operations.

In recent years, Hainan's foreign trade has demonstrated strong growth momentum. In 2024, the total volume of Hainan's goods imports and exports reached 277.65 billion yuan -- up 20 percent year on year and nearly 200 percent compared to 2020.

The opportunities in Hainan extend beyond the flows of goods and capital to encompass fields such as talent, education and scientific research.

Hainan is actively introducing high-quality, international educational and medical resources to build a livable and business-friendly environment. Global scientific research institutions and tech enterprises can leverage Hainan's talent opening-up policies and international joint innovation platforms to participate in R&D in cutting-edge fields such as the seed, deep-sea and aerospace industries, and to share in the opportunities brought by China's sci-tech innovation.

Hainan is accelerating its establishment of an institutional system in line with international standards. It is strengthening intellectual property protection, innovating commercial dispute resolution mechanisms, and creating a stable, transparent and predictable business environment through measures such as those to improve the rule of law, simplify administrative procedures and promote cross-border capital flows. These comprehensive institutional innovations will provide a new model for China's cooperation with the world.

In short, the special customs operations of the Hainan FTP are far more than a technical adjustment to customs supervision. Rather, it opens a fast track for trade, investment and innovation. Against the current international backdrop of rising protectionism, Hainan's special customs operations demonstrate China's firm determination to expand its high-level opening-up.

The world needs an open China, as the country's opening-up contributes to a more inclusive, prosperous and sustainable world. The 15th Five-Year Plan period (2026-2030) will see China take steady steps to advance its opening-up at the institutional level, which will mean greater openness in its rules, regulations, management and standards. The country's pilot free trade zones and the Hainan FTP will serve as testing grounds for such reforms.

As various policies are implemented, Hainan is expected to become a new engine boosting regional economic and trade cooperation. Through the expansion of its high-standard opening-up, China is set to bolster more open cooperation across the globe, and to provide powerful impetus for an open world economy. ■