On December 19, China's Hainan Free Trade Port launched island-wide special customs operations, with a bulk carrier carrying 179,000 metric tons of petrochemical raw materials becoming the first zero-tariff import at Yangpu port. At the same time, Haikou Meilan International Airport shipped the first batch of duty-exempt chocolates, marking the full implementation of the initiative.
The island-wide special customs operations for Hainan Free Trade Port launched in Haikou on December 19, coinciding with the 47th anniversary of China's reform and opening-up policy. Vice-Premier He Lifeng stated at the ceremony that the initiative aims to seize opportunities to deepen reforms in key areas, promote high-quality development, and strengthen risk prevention, positioning Hainan as a pivotal gateway for China's new round of opening-up in the new era.
Under the June 2020 master plan, Hainan is set to become a globally influential high-level free trade port by mid-century. The framework features 'freer access at the first line, regulated access at the second line, and free circulation within the island.' The proportion of zero-tariff product lines has risen from 21 percent to 74 percent, covering about 6,600 items. Goods produced in Hainan or using imported materials with at least 30 percent value-added processing can enter the mainland exempt from import tariffs.
The first zero-tariff import was a colossal bulk carrier laden with 179,000 metric tons of petrochemical raw materials, docking at Yangpu port on Thursday morning. Concurrently, 3,300 boxes of locally produced chocolate, achieving at least 30 percent value-added processing, departed from Haikou Meilan International Airport's cargo terminal for Beijing and Hanzhong in Shaanxi province as the inaugural duty-exempt shipment.
Businesses quickly capitalized on the policy. Siemens Energy became the first foreign-invested enterprise to register in Danzhou, Hainan. 'With the free trade port option, we have the chance to optimize our logistic processes and to reduce administration effort and make everything faster,' said Lars Voelker, general manager of Siemens Energy (Hainan). The company broke ground on a gas turbine assembly base and service center, slated for completion in 2027.
Zhang Xiangchen, deputy director-general of the World Trade Organization, highlighted that the initiative delivers tangible policy dividends but values its role in systemic innovation more. 'These opening-up measures are not isolated adjustments, but interconnected measures spanning trade, taxation and financial services,' he said. 'The island serves as a testing ground. It allows us to identify potential issues and make adjustments, thereby reducing risks when scaling reforms nationwide.'
Chi Fulin, president of the China Institute for Reform and Development, noted Hainan's position at the geographic heart of the Regional Comprehensive Economic Partnership (RCEP), the world's largest trade group, grooming it as a conduit for closer ties with ASEAN economies. Zhu Jianmin, chairman of Oxiranchem Group, praised Hainan's business environment, stating that its tax policies, location, and logistics enabled global sourcing and targeting ASEAN markets, with their Yangpu project operational by the end of 2023.
The move underscores China's commitment to high-standard opening-up, turning its vast market into a magnet for global trade and investment amid rising worldwide protectionism.
