Hainan Free Trade Port Draws 1,240 Foreign Firms as Zero-Tariff Imports Jump 120%
Updated
Updated · Financial Content · Jun 24
Hainan Free Trade Port Draws 1,240 Foreign Firms as Zero-Tariff Imports Jump 120%
2 articles · Updated · Financial Content · Jun 24
Summary
Nearly 2.65 billion yuan in zero-tariff imports flowed into Hainan through May 31, six months after island-wide special customs operations began, while 1,240 new foreign-funded enterprises were added.
The gains follow Hainan's new customs regime—free access at the first line, regulated access at the second, free circulation within the island—plus tariff breaks on eligible imports and value-added processing.
More than 580 million yuan in domestic sales qualified for the value-added processing exemption, generating over 30 million yuan in tariff savings and supporting investment in manufacturing, healthcare and technology projects.
20.34 billion yuan in offshore duty-free sales and 1.38 million cross-border passenger trips underscored the broader lift to tourism and consumption, helped by visa-free access for 86 countries and 78 international passenger routes.
More than 1,200 free trade accounts have handled over 600 billion yuan in cross-border transactions, as Hainan pushes wider reforms in customs, finance and data flows to become a higher-standard trade hub.
Can Hainan's state-led boom genuinely challenge established free ports like Singapore and Hong Kong?
With data as the new oil, can Hainan's policies truly satisfy global tech and health firms?
Is Hainan a true gateway to China or a trap under its new security-focused trade laws?
Hainan’s Economic Leap: 1,240 New Foreign Firms and Surging Zero-Tariff Trade After Customs Overhaul
Overview
In the six months following the launch of Hainan’s island-wide independent customs operation in December 2025, the region has seen a remarkable economic surge. The establishment of the Hainan Free Trade Port as the world’s largest by area marked a new era of enhanced trade and investment facilitation. This move quickly attracted strong global business interest, with 1,240 new foreign-funded enterprises joining and a 37.62 percent year-on-year increase in such businesses. These developments highlight growing international confidence in Hainan’s new policy framework and its potential for future growth.