Beijing drew a line around Hainan at midnight on 18 December, turning the tropical province into a single customs territory separate from the mainland. Goods with at least 30 % value-added content produced in Hainan can now enter the rest of China tariff-free, while foreign firms are granted access to service sectors—from legal to cloud computing—normally off-limits.
The move is the capstone of the Hainan Free Trade Port (FTP) plan first unveiled in 2020 and is widely viewed as a pilot to convince members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) that China can meet high-standard trade rules. Vice-Premier He Lifeng called the FTP a “vital gateway” for a new era of openness.
To navigate the surge of executive travel this liberalisation is expected to generate, VisaHQ can arrange fast-track business visas and residence permits, leveraging its on-the-ground specialists and digital application tools (https://www.visahq.com/china/). The service keeps corporate mobility teams abreast of evolving FTP entry policies, sparing them the paperwork bottlenecks that often accompany new trade regimes.
![China Activates Island-Wide Customs Closure in Hainan, Launching US$113 Billion Free-Trade Port]()
For mobility specialists, the customs closure has two immediate implications. First, expatriates working for qualifying companies in Hainan will enjoy simplified work-permit renewals and a 15 % flat income-tax rate—well below the 45 % top rate on the mainland. Second, foreign vessels and aircraft can call at Hainan with streamlined cabotage waivers, potentially reshaping logistics routes between Southeast Asia and the Pearl River Delta.
Sceptics question whether a province with a GDP of US $113 billion—one-quarter the size of Hong Kong—can offer the rule-of-law environment multinationals require. Real-estate investors also worry about land-lease restrictions. Nevertheless, hospitality chains from Marriott to Accor have announced new properties, banking on an expected influx of duty-free shoppers and medical-tourism clients.
Companies considering a Hainan hub should map supply-chain flows carefully: imports into the FTP are duty-free, but sending non-qualifying goods back to the mainland still triggers tariffs. HR teams should update tax-equalisation models for staff transferring to the island.
The move is the capstone of the Hainan Free Trade Port (FTP) plan first unveiled in 2020 and is widely viewed as a pilot to convince members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) that China can meet high-standard trade rules. Vice-Premier He Lifeng called the FTP a “vital gateway” for a new era of openness.
To navigate the surge of executive travel this liberalisation is expected to generate, VisaHQ can arrange fast-track business visas and residence permits, leveraging its on-the-ground specialists and digital application tools (https://www.visahq.com/china/). The service keeps corporate mobility teams abreast of evolving FTP entry policies, sparing them the paperwork bottlenecks that often accompany new trade regimes.
For mobility specialists, the customs closure has two immediate implications. First, expatriates working for qualifying companies in Hainan will enjoy simplified work-permit renewals and a 15 % flat income-tax rate—well below the 45 % top rate on the mainland. Second, foreign vessels and aircraft can call at Hainan with streamlined cabotage waivers, potentially reshaping logistics routes between Southeast Asia and the Pearl River Delta.
Sceptics question whether a province with a GDP of US $113 billion—one-quarter the size of Hong Kong—can offer the rule-of-law environment multinationals require. Real-estate investors also worry about land-lease restrictions. Nevertheless, hospitality chains from Marriott to Accor have announced new properties, banking on an expected influx of duty-free shoppers and medical-tourism clients.
Companies considering a Hainan hub should map supply-chain flows carefully: imports into the FTP are duty-free, but sending non-qualifying goods back to the mainland still triggers tariffs. HR teams should update tax-equalisation models for staff transferring to the island.
