Recently, an article titled “Hong Kong and Hainan Can Grow Together” by American scholar Josef Gregory Mahoney has sparked discussion in international media. Mahoney’s observation that “Hainan’s new opening-up policies provide growth opportunities for the world” aligns perfectly with the core theme of the 2026 Hainan Provincial Government Work Report: “Gathering Strength to Promote Higher-Level Opening-Up.”

This resonance reflects not only the international community’s recognition of the Hainan Free Trade Port’s (FTP) global role but also the new mission Hainan shoulders in this era of advanced opening-up.

Currently, the construction of the Hainan FTP has entered a critical new stage with the launch of island-wide special customs operations. A close reading of the 2026 Government Work Report reveals a roadmap defined by solid data and clear pathways. Most notably, the strategic deployment regarding Foreign Investment, Foreign Trade, and Foreign Personnel signals a shift toward high-quality development driven by institutional opening-up—writing a new chapter in Hainan’s modernization.

Polina, a full-time Russian host for the Hainan International Media Center, asks a question during the "Director-Generals' Passage" at the Hainan Provincial "Two Sessions." Like many international talents, Polina has worked in Hainan media for over three years, sharing the Hainan FTP story with the world from a unique third-party perspective. (Photo: Nanhai Net / Li Hao)

I. One Month After Launching the Landmark Island-wide Special Customs Operations: Data Defining New Heights of Openness

On December 18, 2025, the Hainan Free Trade Port officially launched island-wide special customs operations. It is vital to understand that “special customs operations” does not mean closing off the island; rather, it signifies a transition to a higher level of openness. One month into this new phase, multiple outward-facing economic indicators have shown double-digit growth, proving the immediate impact of these policies.

Foreign Investment (Attraction): The magnetic pull is stronger than ever. In 2025, the actual utilization of foreign capital grew by 19.9%, outpacing the region’s GDP growth. Following the special customs operations, the number of newly established foreign-funded enterprises rose by 13%. This surge is backed by solid legal guarantees, such as the Regulations on Foreign Investment in the Hainan Free Trade Port, and market access breakthroughs, including the operation of the first wholly foreign-owned hospital.

Foreign Trade (Optimization): The trade structure is upgrading rapidly. In 2025, the total volume of service imports and exports jumped by 22.1%, far exceeding the growth rate of goods trade. The value of goods benefiting from the “zero tariff on value-added processing” policy doubled, and over 10,000 new entities benefited from the “zero tariff” policy. This marks Hainan’s acceleration from a traditional goods transit channel to a modern trade hub characterized by offshore trade, bonded maintenance and repair, and cross-border e-commerce.

January 15: International passengers prepare for entry formalities at Sanya Phoenix International Airport.

 (Photo: Xinhua)

Foreign Personnel (Connectivity): Convenience and appeal have both skyrocketed. In 2025, Hainan received 1.5 million inbound tourists (up 35.2%), with visa-free entries surging by 64%. The nation’s first Seventh Freedom of the Air route is now operational, and the gross tonnage of international ships registered under “China Yangpu Port” ranks second in the country. The growing convergence of people and logistics highlights Hainan’s vitality as an international gateway.

II. Reviewing the “14th Five-Year Plan”: A Foundation of Institutional Strength

Looking back at the “14th Five-Year Plan” period (2021-2025), we see the critical formative years of the Hainan FTP, which laid a solid institutional foundation for long-term development.

Institutional innovation has been the primary engine. Over the past five years, Hainan has accumulated 173 institutional integration innovation cases, 37 of which have been promoted nationwide. Frameworks such as the national-first negative list for cross-border trade in services, the highest level of foreign investment access openness, and the “first line opened up, second line effectively regulated” model have constructed the core of institutional opening-up.

Data confirms the effectiveness of this development:

Trade: Annual average growth of 24.1% for goods and 30.2% for services.

Investment: Annual average growth of 16.7% in actual utilization of foreign capital, attracting investment from 180 countries and regions.

Access: Visa-free entry expanded to 86 countries, maintaining China’s most favorable entry policies. By 2025, the number of foreigners working in Hainan had increased by 90% compared to 2020.

January 11: Foreign tourists shopping at a mall in Sanya. (Photo: Xinhua / Guo Cheng)

Industrial upgrades provide lasting support. The four leading industries have increased their share of GDP by approximately 14 percentage points over five years, with tourism contributing 33.4% to GDP. Offshore duty-free sales now account for over 8% of the global market, and the Boao Lecheng International Medical Tourism Pilot Zone has become a primary channel for advanced international pharmaceuticals and medical devices entering China.

III. The “15th Five-Year Plan”: Precision Focus for Future Growth

Standing at the dual starting point of the “15th Five-Year Plan” and full special customs operations, the Government Work Report sets “Higher-Level Opening Up” as a priority. Here is how Hainan plans to tackle the “Three Outs”:

Foreign Investment: Focus on “Protection & Upgrading”

The report sets a target of 10% growth in the actual utilization of foreign capital. To achieve this, Hainan will refine the foreign enterprise round-table system and complaint mechanisms, and implement “single certification, multi-location recognition” for foreign enterprise registration. Crucially, the focus is shifting from “policy attraction” to “market and industrial attraction,” guiding foreign capital into emerging industries like deep-sea technology, commercial aerospace, and bio-manufacturing.

Foreign Trade: Focus on “Freedom & Convenience”

With a target of 10% growth for both goods and service trade, the key moves include:

Expanding the scope of “zero tariff” commodities for island residents.

Shortening the negative list for cross-border trade in services.

Accelerating the development of offshore trade.

These measures aim to convert the institutional advantages of the special customs operations into tangible trade volume and industrial competitiveness.

Recently, multiple ships docked at Yangpu Port. Since special customs operations began, shipping activity at Yangpu Port has continued to rise, creating a bustling scene. (Photo: Hainan Daily / Chen Yuancai)

Foreign Personnel: Focus on “Openness & Integration” The report calls for “substantial growth” in inbound tourists and a 20% increase in foreigners working in Hainan. Measures include:

Implementing more convenient immigration policies and expanding the scope of visa-free countries.

Increasing the frequency of international flights.

Exploring streamlined immigration policies for foreign high-tech talent.The goal is to evolve from attracting “international tourists” to gathering “international talent,” building an island where global minds meet.

IV. The Engines of Growth: Industry and Talent

Writing the next chapter of Hainan’s global story is not an isolated task; it depends on the strength of two major engines: Industrial Competitiveness and Talent Attraction.

A Modern Industrial System is the foundation. The report highlights the “45432” development framework, focusing on strengthening advanced manufacturing and cultivating emerging sectors like commercial aerospace, the low-altitude economy, and the digital economy. A real economy with unique Hainan characteristics is the fundamental basis for attracting high-quality foreign capital.

Education, Technology, and Talent provide the momentum. For three consecutive years, Hainan’s R&D investment growth rate has ranked first in China. By supporting the Yazhou Bay National Laboratory and deep-sea technology innovation, and implementing the “One Million Talents Plan,” Hainan is creating a virtuous cycle of “Education-Technology-Talent.”

From the bold leap of island-wide special customs operations to the grand blueprint of the “15th Five-Year Plan,” Hainan is using institutional opening-up as its pen, modern industry as its ink, and global talent as its inspiration. On the map of Chinese modernization, Hainan is vigorously painting a vivid picture of a Free Trade Port that is favored by investors, prosperous in trade, and a home for global citizens.