In a significant policy address at the fourth session of the 14th National People’s Congress, Premier Li Qiang reaffirmed China’s commitment to advancing the Hainan Free Trade Port as a cornerstone of the nation’s economic reform and high-standard opening-up strategy. This marks the eighth consecutive year the ambitious project has been highlighted in the government’s annual work report, signaling its enduring strategic importance.
The development initiative has already yielded substantial results since the December 18 implementation of island-wide special customs operations, a landmark achievement in Hainan’s economic transformation. Within just two months of the policy launch, foreign investment in the region surged dramatically, with new foreign-funded enterprises increasing by 45.6 percent. The tariff liberalization framework expanded significantly, raising the proportion of imported goods eligible for zero tariffs from 21 percent to 74 percent.
Customs data reveals impressive trade growth exceeding 9 percent during this period, demonstrating the immediate impact of the policy changes. The special economic zone offers unique advantages, including provisions that allow imported products undergoing at least 30 percent value-added processing in Hainan to enter mainland China tariff-free. Additionally, certain goods restricted or banned elsewhere in China enjoy liberalized policies within the free trade port.
The economic benefits became particularly evident during the recent Spring Festival holiday, where zero-tariff goods imports reached approximately 48.6 million yuan ($7.04 million), resulting in tariff exemptions of about 9.4 million yuan. Premier Li emphasized that China will continue to enhance the layout and scale of pilot free trade zones to strengthen their innovation-driven development capacity, positioning Hainan as a model for China’s future economic openness.