Hainan Free Trade Port
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Hainan Free Trade Port
海南自由贸易港 | |
|---|---|
Free-Trade Port | |
 Satellite photo of Hainan | |
| Country |  China |
| Province | Hainan |
| Official launch | 18 October 2018 |
| Customs closure | 18 December 2025 |
| Government | |
| • Body | Office of the Hainan Provincial Party Committee for the Hainan Free Trade Port |
| Area | |
• Total | 35,354 km2 (13,650 sq mi) |
| Population (2020) | |
• Total | 10,081,232 |
| • Density | 285.15/km2 (738.54/sq mi) |
| Time zone | UTC+8 (China Standard) |
| Website | www |
Hainan Free Trade Port refers to the designation of the entire island of Hainan, China, as a special economic development area and free-trade zone. It is the largest special economic zone in the People's Republic of China (PRC).
The Hainan Free Trade Port was announced by Chinese Communist Party (CCP) general secretary Xi Jinping in 2018, which was followed by the approval of the port's establishment by the State Council of China. In 2021, the Standing Committee of the National People's Congress passed the Law of the People's Republic of China on the Hainan Free Trade Port. Beginning in 2023, Hainan launched its customs closure operations (Chinese: 封关作业), adopting a "supervision of goods, not people" model. The Free Trade Port completed the customs closure and commenced full operation on 18 December 2025.
The Hainan Free Trade Port covers the entire province of Hainan. The Hainan Provincial People's Government operates under direct guidance from officials dispatched by central ministries and commissions under the State Council, including the National Development and Reform Commission, the Ministry of Finance, the Ministry of Commerce, the People's Bank of China, and the General Administration of Customs. The Law on the Hainan Free Trade Port outlines reforms related to changes in resident rights within the Free Trade Port, immigration and entry–exit policies, and customs closure procedures, representing a deepening of reform, innovation, and openness. Following authorization, Hainan is permitted to exercise a significant degree of local autonomy under the guidance of the central government. In addition to reforms and self-governance in customs, investment, and taxation, the province is expected to have distinct arrangements in major policies, administrative management, and visa systems from those of mainland China.
On April 13, 2018, Xi Jinping, General Secretary of the Chinese Communist Party, announced on behalf of the CCP Central Committee at a conference celebrating the 30th anniversary of Hainan Province.[1] General Secretary Xi Jinping required that Hainan should focus on supply-side structural reform and build a free trade port with Chinese characteristics.[2] On October 16, 2018, the State Council approved the establishment of the Hainan Free Trade Zone and issued the "Overall Plan for the China (Hainan) Pilot Free Trade Zone".[3]
On June 1, 2020, the CCP Central Committee and the State Council of the People's Republic of China issued the "Overall Plan for the Construction of Hainan Free Trade Port",[4] proposing the principles of zero tariffs and low tax rates, increasing the off-island duty-free shopping quota to 100,000 yuan per person per year, and expanding the types of duty-free goods.[5][6][7]
On June 3, 2020, 11 key parks held a ceremony to mark their opening. Among them, the key modern service industry parks include Haikou Jiangdong New Area, Haikou Comprehensive Bonded Zone, Sanya Central Business District, and Boao Lecheng International Medical Tourism Pilot Zone; the high-tech industrial parks include Yangpu Economic Development Zone (Dongfang Lingang Industrial Park, Lingao Gold Medal Port Development Zone), Haikou National High-tech Industrial Development Zone, Sanya Yazhou Bay Science and Technology City, Wenchang International Aerospace City, Hainan Ecological Software Park, and Fuxing City Internet Information Industry Park; the tourism industry parks include Lingshui Li'an International Education Innovation Experimental Zone.[8]
On June 30, 2020, the Ministry of Finance and the State Taxation Administration issued the "Notice on Preferential Corporate Income Tax Policies for Hainan Free Trade Port" and the "Notice on Personal Income Tax Policies for High-end and Shortage Talents in Hainan Free Trade Port". The "Notice on Preferential Corporate Income Tax Policies for Hainan Free Trade Port" proposed that enterprises in encouraged industries registered and operated in Hainan Free Trade Port shall be subject to a reduced corporate income tax rate of 15%. Enterprises in the tourism, modern service and high-tech industries established in Hainan Free Trade Port shall be exempted from corporate income tax on income from new foreign direct investment. The "Notice on Personal Income Tax Policies for High-end and Shortage Talents in Hainan Free Trade Port" proposed that talents who meet the conditions for tax reduction and exemption working in Hainan Free Trade Port shall be exempted from the portion of their actual personal income tax burden exceeding 15%.[9]
On August 24, 2020, Hainan published the 2020 Hainan Free Trade Port Investment Guide in Chinese and English, providing policy support for international institutions and individual investors.[10] On September 13, 2020, the third batch of Hainan Free Trade Port construction projects started construction.[11] On November 8, 2020, the ninth batch of institutional innovation cases for the Free Trade Port was released, involving matters such as “one-stop service” for ship registration and the reduction of approval procedures for low-altitude flights.[12][13] On December 1, 2020, the first zero-tariff commodity list of Hainan Free Trade Port was officially implemented.[14] On December 25, the second zero-tariff commodity list was released.[15]
On December 31, 2020, China's National Development and Reform Commission and the Ministry of Commerce released the 2020 version of the negative list for foreign investment access to the Hainan Free Trade Port, which abolished the prohibition on foreign investment in the exploration, mining and beneficiation of rare earths, radioactive minerals and tungsten in the mining industry.[16]
On March 4, 2021, the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation jointly issued the "Notice on the "Zero Tariff" Policy for Self-Used Production Equipment in Hainan Free Trade Port", which stipulates that enterprises registered in Hainan Free Trade Port and with independent legal person status will be exempt from customs duties, import value-added tax and consumption tax on imported production equipment for their own use, except for goods that are clearly not exempted from tax by laws and regulations and relevant provisions, goods prohibited from import by national regulations, and equipment listed in the "Negative List of "Zero Tariff" Self-Used Production Equipment in Hainan Free Trade Port" attached to the notice.[17]
On 10 June 2021, the 29th meeting of the Standing Committee of the 13th National People's Congress passed the Hainan Free Trade Port Law of the People's Republic of China, which determined to establish and improve the Hainan Free Trade Port customs supervision special zone system with closed-off customs operations on the entire island.[18] On the basis of effective supervision in accordance with the law, a goods trade management system with free entry and exit, safety and convenience will be established, and service trade management measures will be optimized to achieve trade liberalization and facilitation.[19]
From September 2021, the Hainan Free Trade Port International Ship Regulations will be officially implemented. On 26 July 2021, the "Special Administrative Measures for Cross-border Trade in Services in Hainan Free Trade Port (Negative List) (2021 Edition)" was released.[20] This is the first negative list released by China in the field of cross-border trade in services.[21] On 29 September 2021, the 30th meeting of the Standing Committee of the 6th Hainan Provincial People's Congress reviewed and approved the Hainan Free Trade Port Fair Competition Regulations and the Hainan Free Trade Port Anti-Consumer Fraud Regulations.[22] On 20 November 2022, the first foreign-invested enterprise cluster in Hainan Free Trade Port serving foreign-invested enterprises was unveiled in Qiongshan District, Haikou, and six foreign-invested enterprises signed letters of intent to move in at the same time.[23]
On 29 June 2023, the second batch of construction projects for the Hainan Free Trade Port in 2023 officially broke ground. A total of 180 projects were launched, with a total investment of 36.6 billion yuan. On 1 December 2023, the port's first intercontinental cargo charter route to North America was inaugurated.[24][25][26]
On 5 January 2024, the inspection area for railway freight trains at Huairou South railway station—the first railway customs clearance project of the Hainan Free Trade Port, built by the China Railway 25th Bureau Group—was completed.[27] On 17 April 2024, the port's first direct container shipping route to the Middle East was launched, with its maiden voyage successfully completed on 28 April 2024. On 6 May 2024, the Administrative Measures for Multi-Functional Free Trade Accounts of the Hainan Free Trade Port came into effect. On 6 December 2024, construction began on Phase III of Macun Port, one of the port's key infrastructure projects.[28]
In October 2025, the fourth plenary session of the 20th Central Committee of the Chinese Communist Party adopted the proposals for the 15th Five-Year Plan, which explicitly called for the "high-standard development of the Hainan Free Trade Port."[29] In November 2025, General Secretary Xi Jinping visited Sanya, stating that "the strategic goal of building the Hainan Free Trade Port is to make it a vital gateway for China's new era of opening to the outside world."[30][31][32] On December 18, 2025, the Hainan Free Trade Port implemented island-wide customs closure, formally establishing Hainan Island as a special customs supervision zone.[33]
Politics
Hainan Free Trade Port is not a port in the usual sense, as the entire Hainan Island is regarded as a special economic development area.[34] In addition to reforms and self-governance in customs, investment, and taxation, the province is expected to have distinct arrangements in major policies, administrative management, and visa systems from those of mainland China.[35][36]
Legislative and executive powers
The Hainan Free Trade Port Law of the People's Republic of China grants the Hainan Provincial People's Congress and its Standing Committee the power to legislate on certain matters. Based on the laws and regulations of Hainan Province and the legislative power of the Special Economic Zone, the Hainan Free Trade Port can exercise laws and regulations that are different from those of other regions in mainland China and local government regulations; it can establish relatively independent and reform-oriented local laws based on the national laws. The laws that have been introduced so far involve environmental protection, anti-smuggling, big data development and application, Special Economic Zone Lawyers Regulations, Special Economic Zone Certified Public Accountants Regulations, Special Economic Zone Anti-Drug Regulations, and laws on the quick and simple review of company registrations.[5]
The Hainan Provincial People's Congress and its Standing Committee have the power to independently formulate and implement Hainan Free Trade Port regulations in accordance with the Hainan Free Trade Port Law of the People's Republic of China. Local regulations and commercial dispute mechanisms will become the core of resolving and building the free trade port countermeasure system. The plan also allows Hainan Province to participate in international commercial arbitration and mediation in compliance with the provisions of the Constitution and current national laws and policies.[5]
Big data social governance system
Hainan Province will establish a centralized provincial government data center and a unified "government cloud" across the province, using public networks, data centers, and software and hardware resource services as carriers to provide big data governance policy support to the government. Five basic databases will be built, including population database, legal person database, spatial geographic database, electronic certificates, and credit information.[37] In order to realize the social governance system of big data, Hainan Province has established a statutory body, the Big Data Management Bureau, which has implemented an enterprise-based and market-oriented system and is responsible for the construction and operation of the province's e-government infrastructure, public platforms and common platforms. In May 2018, Hainan Province designated the "Hainan Province Public Information Resources Management Measures" to regulate the management of public information resources from cataloguing, collection, sharing, application, opening, information security and supervision. In July and September 2019, it issued the "Hainan Province Public Information Resources Safe Use Measures" and the "Hainan Province Big Data Development and Application Regulations" respectively.[37]
Free Trade Port Administration
| Consulate General | State Council | Hainan Provincial Committee of the Chinese Communist Party
(Secretary of the Provincial Committee: Feng Fei) |
Hainan Provincial People's Government | |
|---|---|---|---|---|
| Free Trade Port Institutions | Department of Regional Coordination and Development
National Development and Reform Commission |
Comprehensively Deepening Reform Committee
(with Deepening Reform Office under it) |
Free Trade Port Working Committee
(with the Free Trade Port Working Committee Office) | |
| Institutional leaders | Guo Lanfeng
(Director) |
Bater
(Director) |
Shen Danyang, Bater, Ni Qiang
(Directors) |
Liu Xiaoming
(Governor) |
| Related positions held by leaders | Not applicable | Member of the Standing Committee of Hainan Provincial Committee of the Chinese Communist Party
Secretary-General of Hainan Provincial Committee of the CCP Director of the General Office of Hainan Provincial Committee of the CCP |
Shen Danyang
Member of the Standing Committee of Hainan Provincial Party Committee, Vice Governor of Hainan Ni Qiang, Vice Governor of Hainan |
Deputy Secretary of Hainan Provincial Party Committee |
| State Council deliberative and coordinative agencies |
| |||
| Hainan Province related institutions |
| |||
Transportation
Shipping
In order to connect with the Hainan Free Trade Port, on 1 January 2017, the construction of Xuwen Port in Zhanjiang, Guangdong officially started. The port includes 16 5,000-ton passenger ro-ro berths and 1 5,000-ton hazardous goods dedicated ro-ro berth. The first phase of the Xuwen Port project has a designed throughput capacity of 3.2 million vehicles and 17.28 million passengers. It became a major maritime and passenger transport hub connecting the two sides of the Qiongzhou Strait. At the same time, the port is the world's largest existing passenger ro-ro ferry terminal, and the ferry time from Zhanjiang to Haikou would be shortened to one hour.[38] On September 28, 2020, Hainan Free Trade Port's first intercontinental transoceanic route (Yangpu-South Pacific-Australia) was opened.[39]
Aviation hub
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According to the Hainan Free Trade Port policy, Hainan Aviation Hub can enjoy the seventh freedom and the fifth freedom.[40] The Haikou Meilan International Airport launched its second phase expansion project after the release of the Free Trade Port policy. The airport is located in Haikou Jiangdong New District. The new airfield is rated 4F, with a 3,600-meter runway, two parallel taxiways and 61 parking stands, including 35 close parking stands and 36 jet bridges. The new T2 terminal has an area of approximately 296,000 square meters and is equipped with the largest airport duty-free commercial area in mainland China.[40]
Infrastructure construction
Hainan is currently building a series of transverse roads on the island, including the GS360 Wenchang to Lingao Highway. On the basis of the existing three ring roads around the island, the highways from Wanning to Yangpu, Wenchang to Lingao, Danzhou to Baisha, and Wuzhishan through Baoting to Sanya Haitang Bay will be expanded to form an island ring road and city-linking transportation network, integrating the industrial chain and trade transportation roads; this series of projects is also one of the 10 billion-level key projects of Hainan Free Trade Port.[41]
In addition, Hainan also plans to build a regional tourism route called the "National Coastal Scenic Road No. 1", which will build a coastal expressway based on the east–west expressway on Hainan Island to provide infrastructure support for tourist areas across Hainan Island.[41]
