With Hainan Free Trade Port island-wide special customs operations set to officially commence on December 18, 2025. The interview program Expert Talks on Hainan FTP, featuring face-to-face dialogues with leading experts on special customs operations debuts today. In the first episode, we sit down with Dr. Long Guoqiang, Vice President of the Development Research Centre of the State Council.
 

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Dr. Long Guoqiang

Vice President and Party Group Member of the Development Research Centre of the State Council, and recipient of the State Council special allowance. He has led multiple missions to assess the progress of the Hainan Free Trade Port.

|Hainan Free Trade Port enters a new phase of development|

Reporter: Dr. Long, you have visited Hainan many times before. What about the Hainan FTP has left a deep impression on you?

Long Guoqiang (Long): In line with the Master Plan for the Construction of Hainan Free Trade Port, the Development Research Centre of the State Council is responsible for evaluating how the Hainan Free Trade Port is progressing. For more than five years, I've had the honor to participate in this work, visiting Hainan many times in the process. So, as for my deepest impression, it has to be that Hainan has achieved remarkable progress in five years and has taken shape with full momentum ahead of island-wide special customs operations.

Reporter: The term "special customs operations" has become a hot topic these days. Could you please elaborate on the institutional system design that holds up special customs operations?

Long: The Master Plan stipulates that the institutional system for the Free Trade Port is to be implement step-by-step in stages. Adhering to these requirements, the central government has formulated the current special customs operations policies in line with Hainan's actual development. Four factors have been considered in this process. The first is implementing a more open zero-tariff regime for trade in goods. The percentage of zero-tariff goods imported into Hainan through the "first line" from countries and regions outside the Chinese mainland will increase from 21% to 74%.

Beneficiaries of zero-tariff imports in Hainan will enjoy free circulation of such goods between themselves within Hainan. Goods whose added value reaches at least 30% after processing in Hainan will be exempt from import duties when entering the Chinese mainland market. The second is implementing more relaxed trade management measures. Certain goods entering Hainan through the "first line" that are restricted or prohibited from import into China as a whole will be subject to more relaxed rules in Hainan. The third is implementing more convenient supervision measures. Hainan has eight "first line" ports. Qualified goods that enter Hainan through these eight ports will be released immediately by customs. There are also ten "second line" ports, like Haikou's Xinhai Port and Nangang Port. Goods entering the Chinese mainland from Hainan through these "second line" ports will be subject to more convenient supervision measures by customs and local supervisory agencies. The fourth is implementing more efficient and targeted supervision. This will ensure the proper, stable implementation of all relevant opening up policies.

丨Locals' income set to increase after special customs operations丨

Reporter: It's fair to say that the Hainan Free Trade Port's development has drawn much attention from all sectors of society. For those of us living and working in Hainan, which preferential policies can we benefit from, and how will our lives change with special customs operations?

Long: I think the Hainan FTP represents the biggest win for the island's workers and residents. With the implementation of these major opening up measures, the business environment will improve, boosting the FTP's attractiveness to domestic and international investors. The economy will prosper, creating more high-income jobs, and boosting people's income and the value of their assets. In this way, Hainan's residents will have more choice.

Reporter: Hainan is also actively working to create a key practice base for new-quality productive forces. In this regard, as the FTP develops, Hainan gains a clear advantage.

Long: I think the CPC Hainan Provincial Committee and Hainan provincial government's urgency focus on developing new-quality productive forces is well-placed. The Hainan Free Trade Port's course doesn't lie in the past but in the future. Whoever seizes the new opportunities brought by technological progress can catch up, take the lead, and stand out. So, that Hainan is taking new-quality productive forces seriously and developing emerging industries is the right move, in my opinion.

New-quality productive forces, particularly the digital economy and green economy, have extremely broad prospects. This is what the Hainan FTP should be exploring. For example, if you want to develop the digital economy, you create a conducive environment for it. Then, both domestic and international enterprises are more likely to bring their R&D or corporate management departments to Hainan.

Reporter: So, with such a powerful synergy, the future possibilities are boundless.

Long: That's right.

丨Saying that the Hainan Free Trade Port is "within China but outside its customs territory” is inaccurate丨

Reporter: We've also seen different interpretations of how the Hainan FTP will develop after special customs operations. One such understanding is that the Hainan FTP will be "within China but outside its customs territory." How do you think we should interpret the Hainan FTP's special status?

Long: Saying that the Hainan FTP is "within China but outside its customs territory" is inaccurate. Both the Master Plan for the Construction of Hainan Free Trade Port and the Law of the People's Republic of China on the Hainan Free Trade Port clearly stipulate that the Hainan Free Trade Port is a special customs supervision area, not an unsupervised area. Following special customs operations, the Hainan Free Trade Port will still be a part of China's customs territory. Goods, vehicles, and other items entering Hainan through the "first line," and goods entering the Chinese mainland from Hainan through the "second line" are still subject to relevant tariff and customs management regulations and the supervision of China's General Administration of Customs. China Customs has also led the creation of the Hainan Free Trade Port Smart Customs Supervision Platform by Haikou Customs. It enables the targeted and efficient supervision of goods through the "first line" and "second line," as well as within Hainan, promoting convenient cross-border trade, and supporting the healthy development of the Hainan Free Trade Port's characteristic industries.

Hainan must leverage the implementation of special customs operations to accelerate policy implementation, continuously refine the FTP's institutional system, steadily advance institutional opening up, and strive to become a leading gateway for opening up in the new era.