With the approval of the Chinese government, Hainan Free Trade Port (FTP) island-wide special customs operations will officially commence on December 18, 2025. In the third installment of Expert Talks on Hainan FTP, we sit down with Professor Zheng Yongnian, Dean of the School of Public Policy at The Chinese University of Hong Kong, Shenzhen, and Dean of the Qianhai Institute for International Affairs.

Hainan’s Development must be integrated with the Greater Bay Area

Reporter: Both the Hainan FTP and the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) are national strategies. In your view, how can the two better coordinate after island-wide special customs operations begin?

Zheng Yongnian: “Coordination” is the crucial term here, since China is building a unified national market. How do we achieve that? Through coordination. Hainan’s development must be integrated with the GBA. They both hold a special place in China’s economic program, and as an FTP, Hainan is even more unique. As we advance, the GBA can leverage Hainan’s comprehensive FTP policies for its own growth, while Hainan can make use of its comparative advantages to integrate with the GBA’s socio-economic activities. We must view Hainan objectively. It is not yet an economic powerhouse, but free trade requires flow, and that flow is inseparable from the GBA. The GBA, in turn, also needs significant outlets, whether in goods trade, regulatory alignment, or talent. So, if we can connect more of these flows with Hainan, it will be a win-win for both sides.

Reporter: In what key areas can we focus to increase this flow?

Zheng Yongnian: Let’s take Shenzhen, for example. As a manufacturing and innovation hub, many outputs there need to be translated into applications. Where’s the best place to implement this? Well, the Hainan FTP could be the best option due to its highly advanced policies. For instance, over the past decade, more than 20% of the world’s innovative drugs have been developed by Chinese companies. Yet bringing those drugs to market requires many reforms. Hainan, as an FTP, already has the policies to support this and can precisely align with such needs, allowing high-tech, high-value-added industries to land in Hainan.

Accelerating comprehensive and package-style reforms

Reporter: Currently, Hainan is still building its FTP, while Hong Kong is already a mature one. How can Hainan and Hong Kong deepen cooperation and achieve mutual benefit?

Zheng Yongnian: Actually, Hainan’s development direction aligns closely with Hong Kong’s. As an FTP, Hong Kong has well-established rules and regulations, and it is essential to connect these with Hainan. Hainan has already done a great deal in recent years. After special customs operations, we must see a step-change. Hainan must truly implement comprehensive and package-style reforms. If Hainan can adapt to a “Hong Kong+” model, its development will surely accelerate, and prosperity will come more quickly.

We already have plenty of references for high-standard rules and frameworks, such as those under the WTO, RCEP, CPTPP, and others. The key is to treat Hainan as an integrated whole, not as fragmented parts. If Hainan succeeds, it will not only boost its own development but also radiate benefits to other parts of China. With high standards in place, what’s needed is further implementation. After special customs operations, Hainan can serve as the first lever.

Reporter: In which specific areas can Hainan and Hong Kong best complement one another?

Zheng Yongnian: Hainan must selectively learn from Hong Kong’s rules and frameworks when it comes to interaction between these two regions. Manufacturing can be relocated, services cannot, because the core of services lies in regulations and standards. Therefore, the development of Hainan’s service sector depends on learning from Hong Kong’s systems. Rules themselves can’t be moved, but they can be learned.

Reporter: What about in talent training and cooperation?

Zheng Yongnian: The Hainan FTP has some of the most favorable talent policies ever granted by the central government. For example, overseas universities can independently establish campuses in the FTP. The key is how well Hainan uses these policies. I once met a German scholar in Shanghai who said they had already set up one in Hainan.

Reporter: You mean the Hainan Bielefeld University of Applied Sciences.

Zheng Yongnian: Yes, that’s a good model for Hainan. Hainan should establish more applied universities, because only applied universities can translate fundamental research into tangible economic activities and industries. Here, Hainan and Hong Kong are highly complementary. Hong Kong is strong in basic research, and if such research can be translated to Hainan, talent issues can also be addressed. This is a direction Hainan should seriously consider.

Leveraging the“Two Connections” to make businesses profitable

Reporter: Hainan’s network of Global Free Trade Zone (port) partners has expanded to 40, with Singapore among them. How can Hainan and Singapore cooperate more effectively in the future?

Zheng Yongnian: Hainan is backed by the Chinese mainland while facing the world. Why not bring in Singapore’s regulatory frameworks and make Hainan the first stop for Chinese enterprises going global? I think this is entirely feasible and has considerable potential. In terms of comparative advantages, Hainan benefits from the vast Chinese mainland, something Singapore cannot match. However, each FTP partner has its own strengths, so cooperation, especially in the economy and trade, must aim for win-win and multi-win outcomes, not vicious competition.

Reporter: Some say that investing in Hainan means investing in the future. What must Hainan do to better attract foreign investment?

Zheng Yongnian: To put it plainly, profitability is what matters to foreign investors. On one hand, Hainan must connect with the Chinese mainland, especially with the GBA. On the other hand, it must link with ASEAN and the wider world. Through these “two connections,” foreign investors will see Hainan as a prime destination. When enterprises know they can link to China’s enormous domestic market and to ASEAN’s ten nations through Hainan, they will see real opportunities to profit.

When investors weigh Singapore, Hong Kong, or Hainan, their considerations are the same: which one offers lower costs, higher quality, and greater convenience. Special customs operations will certainly enhance convenience in Hainan. However, the real key is to pursue holistic reforms. That will foster a friendlier business environment, attract global capital, and enable Hainan to become a vital intersection linking China with the world.