In a significant expansion of its free trade port policies, Hainan province inaugurated its first dedicated duty-free shops for local residents on February 11, 2026. The pioneering retail establishments mark a new chapter in China’s consumer economy development, offering island dwellers unprecedented access to tax-free daily necessities.
The initial rollout comprises five strategically located stores across the province: three in the capital city of Haikou, one in the tourist hub of Sanya, and one in Danzhou. This geographical distribution ensures accessibility for residents across different regions of the tropical island.
Under the groundbreaking policy, each eligible Hainan resident receives an annual duty-free shopping allowance of 10,000 yuan (approximately $1,437), with no restrictions on purchase frequency. The comprehensive product catalog encompasses essential daily items across multiple categories, including specified food and beverages, daily chemical products, household goods, and maternal and child supplies.
The initiative represents a strategic component of Hainan’s transformation into a globally significant free trade port, offering dual benefits of stimulating local economic activity while providing tangible financial relief to residents through tax savings. The shops opened during the Spring Festival period, strategically timing the launch to maximize consumer engagement during China’s most important holiday season.
Consumer response has been notably positive, with initial visitors expressing enthusiasm for the convenience and economic advantages offered by the new shopping venues. The policy demonstrates China’s continuing commitment to innovative retail reforms and regional economic development strategies.