Hainan FTP's First Month of Island-Wide Special Customs Operations Boosts Economic Vitality

One month into the island-wide special customs operations, the Hainan Free Trade Port (FTP) in south China has maintained smooth and orderly functioning, with initial achievements in logistics efficiency, passenger convenience, and economic aggregation, highlighting the country's commitment to high-level opening up.
 
Hainan Heren Pearl Co., Ltd., which mainly imports pearls from overseas, has emerged as a direct beneficiary of Hainan FTP policies. Under the value-added processing policy, the company can sell its high-value products to the mainland duty-free, cutting its overall tax burden from about 52 percent to roughly 26 percent and redirecting the savings into research and development, said Zhang Shizhong, the company's chairman. "The FTP holds great promise, with more policy dividends set to be released in the future," Zhang said.
 
One notable special customs policy is offering "freer access at the first line," referring to freer trade between Hainan and areas outside China's customs borders, and "regulated access at the second line," which involves applying standard customs controls for goods moving from Hainan to the mainland. According to Haikou Customs, from Dec. 18, 2025 to the early hours of Jan. 18, 2026, the value of "first line" imported zero-tariff goods was 753 million yuan (about 107 million U.S. dollars); the value of processed and value-added goods sold domestically through the "second line" was about 85.9 million yuan.
 
In Wanning City, production lines at Chia Tai (Hainan) Xinglong Coffee Industry Development Co., Ltd. are running at full capacity. The company imports green coffee beans from Colombia and processes them in Hainan before shipping the finished products to the mainland, enjoying an 8 percent tariff reduction under the FTP policies. "After the launch of island-wide special customs operations, Hainan will gradually become a value-added processing center and trade hub with global resource allocation capabilities," said Ye Jian, the company's general manager. "Enterprises will not only pass through Hainan, but also be able to put down roots here and create higher value.“
 
Drawn by the policy incentives, a growing number of companies are choosing to do business in Hainan. The General Administration of Customs said a total of 5,132 new foreign trade enterprises completed registration in Hainan over the past month, an increase in a month roughly equivalent to the total registrations in an entire quarter of 2024. The total number of registered foreign trade market entities in Hainan has surpassed 100,000, according to official data.

As the policy came into force, major ports across Hainan saw a surge in activity. Days after Hainan began island-wide special customs operations, a flight from Prague carrying 115 European passengers touched down in the tourist city of Sanya, marking a breakthrough in the high-level opening up of the aviation sector at the Hainan FTP.
 
The arrival marked the launch of China's first official passenger route operated under the Seventh Freedom of the Air, which allows foreign carriers to operate flights between two foreign countries without having to land in their home country.

The route is operated by Kazakhstan's Scat Airlines, with one round-trip scheduled each week. At Yangpu Port, the largest cargo port in the Hainan FTP, mega-ships berthing in quick succession, gantry cranes operating around the clock, and container trucks moving in tightly coordinated flows have become a routine sight. "Yangpu will shoulder the role of the main logistics gateway of the Hainan FTP," said Yang Xiaobin, deputy head of the Transportation, Port and Waterway Bureau of Yangpu Economic Development Zone. "The port aims to build a smart and green international shipping hub and logistics center." 

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