SCIO press conference on development of Hainan Free Trade Port

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Read in Chinese

Speakers:

Mr. Feng Fei, secretary of the Hainan Provincial Committee of the Communist Party of China (CPC) and chairman of the Standing Committee of the Hainan Provincial People's Congress

Mr. Liu Xiaoming, deputy secretary of the Hainan Provincial CPC Committee and governor of Hainan province

Mr. Wang Changlin, vice chairman of the National Development and Reform Commission (NDRC)

Mr. Liao Min, vice minister of finance

Mr. Yuan Xiaoming, assistant minister of commerce

Mr. Wang Lingjun, vice minister of the General Administration of Customs of China (GACC)

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

July 23, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are very pleased to have invited Mr. Feng Fei, secretary of the Hainan Provincial Committee of the Communist Party of China (CPC) and chairman of the Standing Committee of the Hainan Provincial People's Congress; Mr. Liu Xiaoming, deputy secretary of the Hainan Provincial CPC Committee and governor of Hainan province; Mr. Wang Changlin, vice chairman of the National Development and Reform Commission (NDRC); Mr. Liao Min, vice minister of finance; Mr. Yuan Xiaoming, assistant minister of commerce; and Mr. Wang Lingjun, vice minister of the General Administration of Customs of China (GACC), to brief you on the development of Hainan Free Trade Port (FTP), and to answer your questions.

Now, I will give the floor to Mr. Wang for his introduction.

Wang Changlin:

Good morning, everyone. The establishment of a free trade port with Chinese characteristics in Hainan province represents a significant reform and opening-up initiative, with General Secretary Xi Jinping playing a personal role in its design, planning and promotion. In June 2020, the CPC Central Committee and the State Council officially released the "Overall Plan for the Construction of Hainan Free Trade Port." Over the past five-plus years, we have earnestly studied and implemented the guiding principles of General Secretary Xi Jinping's important views on the construction of Hainan FTP. Under the direct leadership of the Central Leading Group for Coordinated Regional Development, and in close collaboration with Hainan province and relevant departments, we have prioritized institutional integration and innovation. We have accelerated reform and opening up in key areas, rolled out a series of landmark and pioneering innovative measures, and established an initial policy and institutional framework for the free trade port. The core features of this framework can be summarized as "4, 3, 2, 1."

"4" refers to a more convenient flow of the four key factors of people, goods, capital and data. People from a total of 85 countries can enter Hainan visa-free. Yangpu Port in Hainan now ranks second nationwide in terms of the total tonnage of internationally registered vessels. Capital can be freely and conveniently transferred between multifunctional free trade accounts and overseas accounts in accordance with the law. Outbound data flows are regulated through a negative list.

"3" refers to the accelerated opening up of the three major areas of trade in goods, trade in services and investment. We have introduced "zero tariff" policies for the import of raw and auxiliary materials, transportation vehicles including yachts, and self-use production equipment. China's first negative list for cross-border trade in services has been issued and implemented. We have launched 22 special measures to ease market access, and we now have the shortest negative list for foreign investment access in the country.

"2" refers to the enhanced tax incentives for both enterprises and individuals. A preferential 15% income tax rate for both corporations and individuals has been implemented, with cumulative tax reductions and exemptions exceeding 31 billion yuan (about $4.3 billion) and 17 billion yuan, respectively. The pilot policy exempting import tariffs on products with 30% or higher value added after processing has been expanded to cover the entire island. The offshore tax-free shopping quota has been increased to 100,000 yuan per person per year.

"1" refers to the continuous improvement of the legal protection centered on the dedicated Hainan Free Trade Port Law. The port's institutional arrangements have been clarified in the form of laws, and more than 40 supporting regulations have been issued to ensure that reform and innovation measures are effectively implemented.

Altogether, these policies and systems have enabled Hainan to move steadily and energetically toward greater opening up and development, securing significant phased results and laying a solid foundation for the launch of the island-wide special customs operation.

This is a landmark project in the construction of Hainan FTP, as well as a milestone and important step toward deeper opening up. Special customs operation means designating the entire Hainan Island as a special customs supervision area, implementing a liberalization and facilitation policy system characterized by opening the "first line," efficient control at the "second line," and free flow within the island. Opening the "first line" refers to implementing a series of measures for free and convenient entry and exit between Hainan FTP and other countries and overseas regions. Efficient control at the "second line" means precise regulation of entry and exit between Hainan FTP and other regions on the Chinese mainland in response to the liberalization at the first line. Free flow within the island refers to the relatively unrestricted movement of production factors within the port. In this context, special customs operation does not mean sealing off the island, but represents further opening up. After the operation, Hainan's connection with the international community will be more seamless. This is of great significance for accelerating the inflow of quality global resources, driving high-quality development of the free trade port, and helping blaze new trails in China's reform and opening up. 

In line with the phased approach outlined in the overall plan and taking into account Hainan's actual development conditions, we have worked with relevant departments to formulate a package of special customs operation policies for the current stage. These can be summarized as "four more" policies:

First is implementing a more preferential zero tariff policy for goods. The proportion of eligible zero-tariff items imported through the "first line" will be increased from 21% to 74%. Goods can circulate among eligible enterprises within the island without incurring import duties. Processed goods that achieve at least 30% value-added content can be sold to the mainland free of import duties.

Second is to execute more relaxed trade management measures. On the "first line" import side, some imported products currently prohibited and restricted nationwide will be allowed into Hainan.

Third, more convenient passage measures will be implemented. Currently the eight existing ports open on the island will serve as "first-line" ports, and eligible imported goods will be released directly. Ten "second-line" ports such as Haikou New Port and Haikou South Port will be used to implement innovative and convenient passage measures for goods entering other regions on the Chinese mainland.

Fourth, we will implement a more efficient and precise supervision model. Low-intervention, high-efficiency precise supervision will be implemented for "zero-tariff" goods, as well as goods with relaxed trade management measures to ensure the smooth implementation of various opening-up policies. Relevant policy documents will be released to the public later and implemented from the date of the island-wide special customs operation.

The scheduled date for launching the operation is December 18, 2025, with the approval of the CPC Central Committee. On December 18, 1978, the third plenary session of the 11th CPC Central Committee launched the great journey of reform, opening-up and socialist modernization. Initiating the island-wide special customs operation on December 18 is symbolic. It also demonstrates to the world China's unswerving determination and confidence in expanding high-level opening up. In the next few months, we will make every effort to complete the follow-up preparations. We will help business entities fully understand special customs operation policies and conduct related business tests.

The island-wide special customs operation marks the beginning of a new stage of opening up and development for the Hainan FTP. It is a long-term task that will be continuously promoted. Next, following the decisions and deployments of the CPC Central Committee and the State Council, we will see the special customs operation as an opportunity to actively promote the implementation of various policies. We will continuously expand the level of openness based on the needs of Hainan's development, continuously improve the system of policies and institutions of the free trade port, accelerate the establishment of new open economy institutions, and strive to build a leading gateway for China's opening up in the new era.

That is all for my briefing. Thank you.

Shou Xiaoli:

Thank you, Mr. Wang Changlin. Next, let's give the floor to Mr. Feng Fei.