The Chinese news agency "Xinhua" announced that the policies of the Chinese Hainan Free Trade Port, which include the elimination of tariffs and customs exemptions on value-added manufacturing operations, have contributed to saving over 80 billion yuan (approximately $11.65 billion) in taxes, fees, and tax refunds for market entities during the 14th Five-Year Plan period (2021-2025).
Hainan is striving through a series of measures to enhance the free flow of trade, investment, capital, and individuals across borders. Reports indicate that the foreign trade volume of goods for Hainan companies has exceeded 1 trillion yuan for the first time, marking an increase of 19.2% compared to the 13th Five-Year Plan period.
Event Details
Hainan is now considered one of the most open regions in China, attracting investments from 180 countries and regions. The Hainan Free Trade Port is expected to operate at an accelerated pace to build a globally competitive tax system during the 15th Five-Year Plan period (2026-2030). The province also plans to expand the range of goods exempt from tariffs and include a positive list of imported goods consumed by the island's residents, in addition to further reducing tax rates.
Hainan Port, the largest free trade port in the world by area, began special customs operations across the entire island in December of last year. Under the new rule, the "first line" connecting Hainan to external markets allows most imported goods to enter duty-free with faster clearance, while the "second line" between Hainan and the mainland applies standard customs supervision.
Background & Context
Hainan Port represents the largest special free trade area in China, covering the entire island of Hainan. The port officially launched its customs operations in late 2025 and aims to transform into a global shipping and trade hub thanks to high customs exemption policies, making it a pivotal link between the Pacific and Indian Oceans.
The Chinese government aims through these policies to boost economic growth in the region and provide a more competitive business environment, reflecting its commitment to achieving sustainable development goals.
Impact & Consequences
The Chinese government expects these policies to lead to a significant increase in trade and investment volumes, contributing to the enhancement of the national economy. Additionally, these measures may open new avenues for economic cooperation with other countries, strengthening China's position in the global economic arena.
These steps are part of a broader strategy aimed at promoting free trade and facilitating the movement of goods and services, which could improve trade relations with other countries and enhance foreign investments.
Regional Significance
These policies may provide new opportunities for trade cooperation between China and Arab countries, where Arab companies can benefit from tax exemptions and trade facilitation. Strengthening trade relations with China could also contribute to economic development in the Arab region.
In conclusion, the policies of the Hainan Free Trade Port represent an important step towards enhancing global trade, opening new horizons for economic cooperation between China and Arab countries.