01
National Strategic Positioning of Hainan FTP
Hainan FTP is a landmark project of high-level opening-up in the new era under national top-level design. Its core strategic goal is to build an important gateway to lead China's opening-up, serving as a hub for domestic and international dual circulation. First, it acts as a pilot zone for deepening reform and opening-up, aligning with high-standard international trade rules. Second, it serves as a national ecological civilization pilot zone, focusing on green development. Third, it is an international tourism consumption center, leveraging offshore duty-free policies. Fourth, it is a service and guarantee center for major national strategies. Unlike general FTZs, Hainan plays a dual role as a headquarters base for Chinese enterprises going global and a bridgehead for foreign investment entering China.
02
Core Changes After the 2025 Closure
The 2025 island-wide closure operation marks the official implementation of the new operating rules: 'First-line release, second-line control, and free flow within the island'. For trade, zero tariffs will cover over 6,600 tariff items. Imported goods entering the island will face minimal customs intervention, and goods processed in Hainan with a value-added of 30% or more will enter mainland China tariff-free. For taxation, the dual 15% tax rate and offshore trade tax exemption will become permanent, optimizing profitability. For finance, Free Trade (FT) accounts will enable free cross-border capital flows and multi-currency settlements. Meanwhile, shipping rights, personnel entry, and cross-border data flows will be highly liberalized. Substantive operation will remain a strict requirement to enjoy these benefits.
03
Strategic Value for Cross-border Businesses
As China's only island-wide closed custom zone, Hainan FTP provides cost restructuring, flow convenience, and geographical advantages. Tax-wise, the 15% corporate and individual tax cap, combined with zero tariffs and processing value-added exemption, dramatically reduces operational costs. Logistics-wise, the free movement of goods, capital, talents, transportation, and data addresses major pain points in international operations. Combining the benefits of RCEP, Hainan is both a base for Chinese companies expanding into Southeast Asia and a bridgehead for global brands entering mainland China. By establishing substantive operations in Hainan, businesses can build a long-term competitive wall.
