Hainan takes steps towards becoming key global free trade port by 2050

Province unveils new Customs rules, making 74% of imports tariff-free

- Lim Min Zhang China Correspondent

Residential buildings in Sanya, in China's southern Hainan province. The island aims to rival Hong Kong and Singapore as a globally influential free trade port, focusing on offshore finance, high-tech industries and modern services.

(PHOTO: AFP)

BEIJING - China's southern island of Hainan, better known for its sandy beaches and duty-free shopping, is taking its first steps towards an ambitious goal of becoming a “globally influential” free trade port by 2050.

Hainan, a province, completed a milestone by launching fully independent Customs operations islandwide on Dec 18. This allows 74 per cent of goods going into Hainan to be tariff-free, up from 21 per cent previously, lowering costs for firms doing business there.

The idea is for Hainan to trade freely with the rest of the world, with tariff-free goods being circulated freely within the island, while imported goods going from the island to the rest of the country will be taxed as usual.

Hainan is already the world’s largest free trade port in terms of geographical area, at 35,400 sq km.

But it aims to eventually rival Hong Kong and Singapore as a globally influential free trade port, focusing on duty-free shopping, offshore finance, high-tech industries, modern services and tourism.

This is in line with the announcement by President Xi Jinping in 2018 to turn Hainan into a “free trade port with Chinese characteristics”, as a sign of China’s commitment to further opening up.