Hainan Prepares for Historic Milestone with Independent Customs Operations
In a historic development for Hainan, the Free Trade Port (FTP) Hainan is set to achieve a significant milestone with the implementation of independent customs operations. This milestone is a key objective outlined in the Master Plan for the construction of the Free Trade Port Hainan. The success of this initiative signifies a crucial and symbolic step in the further development of Hainan, as this initiative has been included in the provincial government’s work report for seven consecutive years. Chinese President Xi Jinping has emphasized the need for a smooth, orderly, and risk-free transition in light of this initiative.
In an exclusive interview with Liu Xin from CGTN, Governor Liu Xiaoming of Hainan province confirmed that preparations for a smooth and successful transition by the end of the year are well underway.
Contrary to misconceptions about isolation, the customs framework follows the model of "open front line, controlled second line, and free movement inside." This structure facilitates international trade while maintaining necessary regulatory oversight between Hainan province and the mainland. "Progress is proceeding smoothly, with the five major systems – policy, infrastructure, risk control, industry, and organizational support – gradually taking shape," said Liu. "We are ready."
In addition to customs operations, Hainan is striving to enhance its business environment, considering it a "golden ticket" to success. Efforts have been made to develop a market-oriented, legal, and globalized business environment. Hainan has taken the lead nationwide in streamlining government services and introduced a comprehensive service platform for businesses with intelligent regulatory compliance, credit correction, and regulatory support. Foreign companies registered in Hainan have equal access to these services.
Regarding concerns about the experiences of foreign investors in Hainan, Liu Xiaoming emphasized the importance of improving internet access and seamless payment processing. Steps have been taken to facilitate transactions and the daily lives of foreign companies and residents.
Strategic Sectors Driving Growth
The province has focused on four key sectors: tourism, modern services, cutting-edge technologies, and tropical agriculture. The combined share of these sectors in Hainan’s economy increased from 52.4% in 2018 to 67% in 2023. In addition, Hainan has adopted five strategic directions: agriculture, shipping, aviation and aerospace, ecological development, and digital economy.
Priority is especially given to the development of shipping. "Harnessing the power of the ocean" is a key initiative for Hainan as the province oversees approximately 2 million square kilometers of mainly deep-sea ocean. With nearly 1,000 companies and research institutions engaged in deep-sea technologies and the maritime industry, Hainan’s maritime economy maintains double-digit growth and contributes to the province’s GDP by more than a third. Further development of deep-sea energy, advanced equipment manufacturing, marine aquaculture, marine biomedicine, and maritime tourism is planned. "Our goal is to create a new ‘Hainan on the sea’ in the next decade," said Liu Xiaoming.
Leading Environmental Development
Alongside economic development, environmental sustainability remains a top priority. Hainan is considered the most ecologically friendly area in China.
An excellent example of Hainan’s environmental initiatives is the Bo’ao model zone with nearly zero carbon emissions. Through energy-efficient building renovations, switching to renewable energy sources, and agro-photovoltaic systems, carbon emissions on Dongyu Island, the permanent home of the Bo’ao Forum for Asia, have been reduced by 96.2%. The German Energy Agency has recognized the area as the first Chinese regional model zone with nearly zero carbon emissions.
With independent customs operations on the horizon, an improving business environment, strategic industrial development, and strong environmental commitments, Hainan is poised to become a global leader in trade, innovation, and sustainability. The future of the Free Trade Port promises dynamic growth and increased international engagement, ensuring that its development aligns with national goals and global economic trends.
In conclusion, Hainan’s journey towards independence in customs operations marks a significant milestone in its development. With a focus on strategic sectors, environmental sustainability, and improving the business environment, Hainan is paving the way for a prosperous and sustainable future. Stay tuned for more updates on Hainan’s progress and opportunities for engagement in its growth.
