The island-wide special customs operations of the Hainan Free Trade Port (FTP) are set to officially commence on December 18, 2025. Following their implementation, how will the Hainan FTP further boost its traction? In the 8th episode of Expert Talks on Hainan FTP, we sit down with Wang Xinkui, Chairman of the Shanghai WTO Affairs Consultation Center, to get his perspective.

From blueprint dream to construction reality

Reporter (R): On November 6, at a briefing on the construction of the Hainan FTP, Chinese President Xi Jinping emphasized the need to earnestly study and implement the guiding principles of the Fourth Plenary Session of the 20th CPC Central Committee and to build the Hainan FTP to a high standard. Why is he attaching so much importance to the Hainan FTP?

Wang Xinkui (W): President Xi Jinping has high expectations for the Hainan FTP and has given a series of instructions regarding its construction. I think the most important one of these is that he requires those involved in its construction to emancipate their minds, reform and innovate, and build a policy and institutional system that is compatible with a high-level free trade port in incremental steps. Following the implementation of special customs operations, the construction of the Hainan Free Trade Port faces a series of new challenges. This time, Xi Jinping emphasized the need to strike a balance between development and security. I believe that special customs operations are not the end point, but a new starting point for innovative thinking and further reforms. Balancing development and security is a crucial aspect in implementing special customs operations.

R: You are a member of the Hainan Free Trade Port Expert Advisory Committee. In the seven years since 2018, what changes in Hainan have impressed you the most?

W: I was involved in the planning and construction of Yangpu Port when Hainan was established as a province and special economic zone (SEZ). At that time, Yangpu was just a barren beach. To reach Baimajing on the opposite bank, you had to take a boat. The entire Yangpu area had only one building, with a few more across the water in Baimajing.

In the seven years since 2018, I believe the three most significant changes have been:

First, the FTP has transitioned all the way from a blueprint into actual construction on the ground. It's a tremendous leap forward.

Second, there has been significant progress in infrastructure construction. This particular aspect has undergone a challenging process, marked by numerous institutional and systemic innovations. It can now be said to fully meet the requirements of FTP construction.

Third, Hainan has been continuously exploring ways to adapt to the ever-changing international and domestic environment. This includes significant progress regarding the operating models and development concepts that industrial parks follow, as well as the management of relationships between parks. Now, each park has basically identified its own development path.

R: When you went to Hainan in January this year, did you revisit Yangpu Port?

W: Whenever I visit Hainan, I always stop by Yangpu Port. I witnessed the construction of its first building. Now, every time I go, I stay in this building. After the new port in Xiaochantan was built, it provided fresh support for the area's development.

I think the biggest change is the integration of Danzhou and Yangpu. Without the policy advantages of Yangpu Port, Danzhou's development would be limited, and without Danzhou as its hinterland, Yangpu Port would lack crucial support. Now, the city's infrastructure, other construction projects, and functions are all extending toward Danzhou.

R: Do you have any particular insights about the impending special customs operations?

W: The challenges Hainan faces following special customs operations will be even more arduous. We must not assume that all policy advantages will become immediately apparent. So, this time, the CPC Hainan Provincial Committee proposed rolling optimization, which I believe will be crucial for the next five years.

How can this be achieved in practice? The main hurdle is that island-wide special customs operations have no replicable precedent. The central government has clearly proposed the construction of a free trade port with Chinese characteristics. The entire model of special customs operations must be created and innovated independently, so a process of rolling optimization is required. It is essential to continue raising practical issues and proposing solutions before finally making decisions.

"Three focuses" to boost the FTP's traction

R: Boosting the FTP's traction is an important way for Hainan to enhance its economic vitality. What's your take on this?

W: The relationship between policy and reach has always been a challenge for Hainan, for various reasons, which need to be discussed as a whole. The major strategic decisions of the central government, such as the Overall Plan for the Construction of the Hainan Free Trade Port, are the "spirit," while their concrete implementation is the "form." Without policy focus, there will be no traction. Once policies are focused and specific projects are implemented, an agglomeration effect will occur, attracting talent, information, knowledge, data, and capital.

How do we focus? Let's say that central government policies are like sunlight shining everywhere. To implement these policies effectively, you need a clear lens to focus the light on a single point and "ignite" them. Once special customs operations are implemented, we can translate the strategic vision or intent of the central government into actionable forms through "three focuses." First, the objectives must be focused, specifically targeting certain industries or sectors. Second, policies must be focused. We should avoid applying policies superficially without considering their full impact. Third, energy must be focused, as policy effectiveness varies depending on execution capabilities and environmental factors during implementation. We should focus policies on areas with the greatest potential to demonstrate their effectiveness.

R: In your opinion, how can Hainan achieve this combination of spirit and form as it heads into the future?

W: I think Hainan has several key areas to focus on. The first is Hainan's crucial importance in the central government's overall strategic layout. For example, many of the central government's deep-sea and aerospace projects are located in Hainan, something that can't be said for other regions. The second is the effective utilization of Hainan's tourism resources. The third is the promising marine economy. Hainan's advantage lies in its proximity to a genuine deep-sea ocean. Now, it has been proposed that Hainan focus on the high-quality development of its marine economy. I've seen several exemplary enterprises in Hainan conducting marine research or extracting bio-organic materials, which is again something that can't be said for other regions.

R: The Fourth Plenary Session of the 20th CPC Central Committee laid out a strategic blueprint for China's development over the next five years. As a deputy chair of the expert advisory committee for the formulation of Hainan Province's 15th Five-Year Plan, what aspects do you think the Hainan FTP should focus on in order to boost its traction?

W: I have three thoughts on how the Hainan FTP should develop and what its prospects are during the 15th Five-Year Plan period.

First, I believe Hainan currently stands at a rare window of opportunity and challenge within both the global economy and China's economic development. Why did Shanghai's Pudong New District succeed? Because it seized the window of opportunity during the early stages of economic globalization, which was also a ripe period for China's reform and opening up.

Second, Hainan already has a solid foundation. I believe this foundation should not be compared horizontally, but rather vertically against the province's own development over the past 30-plus years, especially the progress made in the past seven years. In doing so, we can uncover substantial reserves and accumulated experience.

Third, Hainan must look forward and innovate its way ahead. Once special customs operations are launched, I believe only continued exploration and innovation can ensure Hainan's development in the next five years, and this is precisely what Hainan is striving to achieve.