Hainan Free Trade Port Sees Trade, Investment Boom After Customs Closure

One month after Hainan Free Trade Port began island-wide independent customs operations, policy dividends are rapidly translating into lower costs, faster trade flows and rising business and consumer activity, signaling a strong start to China’s latest opening-up milestone.

January 18 marked one month since Hainan Free Trade Port (FTP) officially launched independent customs operations. As supportive policies continue to take effect, business, trade and travel activity across the island has accelerated, underscoring new momentum in the FTP’s development.

In Danzhou, production lines at Hainan Danzhou Weida Chemical Co. are running at full capacity. Polypropylene and polyethylene pellets supplied by upstream partners are processed into container-sized bulk bags through spinning, film blowing and other procedures, with shipments being rushed to customers in Guangdong ahead of the Spring Festival.

Following the customs closure, the company has benefited from the cumulative processing value-added policy, allowing it to share policy dividends with upstream partners. 'After applying the policy, our production costs have fallen by 400 yuan per tonne, significantly improving product competitiveness,' said company chairman Mei Shanwang. He noted that the policy not only reduces costs and boosts efficiency across the supply chain, but also strengthens support for future industrial expansion and layout.

In eastern Hainan’s Wanning city, CP (Hainan) Xinglong Coffee Industry Development Co. imports green coffee beans from Colombia, processes them locally and exports finished products to Australia, enjoying exemptions from 8% tariffs and 13% value-added tax. The cost advantages are substantial.

'On the very day of the customs closure, a batch of our coffee beans processed in Hainan with value-added exceeding 30% was shipped to Beijing and exempted from the 8% tariff,' said Ye Jian, the company’s general manager. Looking ahead, the company plans to further leverage the 'processing with both ends offshore' model to expand overseas markets and build Xinglong coffee into a more recognizable international brand.

According to statistics from Haikou Customs, from December 18, 2025 to January 17, 2026, customs authorities supervised 7.5 billion yuan worth of zero-tariff goods under 'first-line' management, and 85.867 million yuan worth of value-added processed goods sold to the Chinese mainland under 'second-line' supervision with tariff exemptions.

Across ports island-wide, coordinated efforts in customs clearance organization, inspection scheduling and risk control have improved efficiency. 'First-line' clearance has become more convenient, 'second-line' supervision more precise, and logistics and vehicle flows more orderly.

On January 9, a shipment of 30,000 tonnes of imported mineral products arrived at Yangpu Port under a 'zero-tariff plus direct release' model. The simplified procedures significantly shortened clearance time. A company representative said the direct release mechanism improved efficiency for raw material imports, while the zero-tariff policy sharply reduced procurement costs, enabling faster capacity ramp-up.

Beyond policy figures, rising foot traffic has become one of the most vivid signs of the post-closure landscape. Haikou Customs reported that during the first month after the customs closure, it supervised 311,000 inbound and outbound passenger trips through Hainan’s airport ports, up 48.8% year on year.

Since January, delegations from the Shenzhen municipal government, Kazakhstan’s Kyzylorda Region, Hainan’s Sichuan and Guangxi chambers of commerce, as well as institutions such as Cheung Kong Graduate School of Business and Beijing Institute of Technology, have visited Hainan for cooperation talks, site inspections and project signings.

At the Hainan Free Trade Port (Dongfang) International Agriculture High-Quality Development Conference held on January 13, Dongfang city signed a cooperation agreement with Kazakhstan’s Kyzylorda Region. 'After the customs closure, Hainan’s trade and investment facilitation has improved significantly, providing an excellent platform for two-way agricultural investment and cross-border circulation of agricultural products,' said Duyssenuly, deputy governor of Kyzylorda Region.

The combined effects of customs closure policies and increased openness are drawing more companies to the island. Haikou Customs data show that 5,132 new foreign trade enterprises were registered in Hainan within one month.

On December 22 alone, Haikou National High-Tech Industrial Development Zone signed agreements with six pharmaceutical and medical device companies, covering R&D, manufacturing and bonded maintenance services. 'Whether targeting domestic or overseas markets, Hainan Free Trade Port offers strong policies and channels,' said Sun Pengcheng, general manager of Jinan Gene Regenerative Medical Technology (Hainan) Co. 'We plan to gradually base our R&D, production and sales operations in Haikou.'

Driven by new policies implemented in November 2025, offshore duty-free consumption has also surged. In duty-free complexes in Haikou, Sanya and other cities, bustling crowds browsing brand counters have become a common sight.

From December 18, 2025 to January 17, 2026, Haikou Customs supervised offshore duty-free shopping worth 4.86 billion yuan, up 46.8% year on year. The number of shoppers reached 745,000, up 30.2%, while the number of items purchased totaled 3.494 million, an increase of 14.6%.

'The island-wide customs closure has been operating smoothly and orderly, with a strong start marked by smoother logistics, more convenient travel and growing flows of people and goods,' said Guan Jirong, executive deputy director of the Hainan Provincial Office for Comprehensively Deepening Reform. He added that Hainan Free Trade Port will play a leading role in advancing high-level opening-up, accelerating its development as a frontier for China’s deeper integration into the global economy and a strategic hub linking domestic and international economic circulation.