As global trade faces rising tariffs and growing protectionism, China is moving in the opposite direction by opening one of its doors wider. That door is Hainan, a tropical island now being positioned as China’s most ambitious experiment in free trade and economic openness.
On December 18, the country launched island-wide special customs operations in Hainan, transforming the entire island into a high-standard free trade zone, encompassing not a single port or industrial park, but the whole island. Expanded zero-tariff policies and new value-added rules are reshaping costs for international companies and delivering real savings to consumers.
China already has 22 free trade zones (FTZs), but Hainan represents a fundamentally different level of openness. Most FTZs are limited to specific urban areas and focus on upgrading local industries. Hainan has transformed an entire island into a unified free trade port, with its own customs, tax and regulatory system.
