One month after the Hainan Free Trade Port (FTP) commenced full, island-wide special customs operations on December 18, 2025, Feng Fei, Secretary of the Hainan Provincial Committee of the Communist Party of China (CPC)—the top official of the province—shared insights on the smooth initial operation and promising prospects of the FTP in an interview with China International Communications Group (CICG). He highlighted the port’s role as a high-level opening-up platform. Edited excerpts of Feng’s remarks follow:

CICG: Island-wide special customs operations have been described as a milestone for Hainan. How do you think this move will promote China’s interaction with the global economy? And how will it redefine Hainan’s role in global trade networks?

Feng Fei: As General Secretary of the CPC Central Committee Xi Jinping noted in Sanya, Hainan Province on November 6, 2025, the official launch of island-wide special customs operations in the Hainan FTP on December 18, 2025, is a landmark move of China to unwaveringly expand high-standard opening up and promote the development of an open world economy.

Special customs operations do not mean closing off the island. On the contrary, they represent a higher level of openness. The strategic goal of building the Hainan FTP is to create a key gateway for China’s opening up in the new era.

Under special customs operations, the Hainan FTP will play a leading role in advancing high-level opening up. Centered on a policy framework featuring zero tariffs, low tax rates and a simplified tax system, as well as free and convenient trade, investment, cross-border capital flows, personnel mobility and transportation, and the secure and orderly flow of data, Hainan will connect on one end with China’s enormous unified national market and on the other with international markets. It will serve as a frontier for China’s deeper integration into the global economy—promoting not only the freer flow of goods and production factors but also steady progress in institutional opening up. By aligning with international rules, regulations, management practices and standards, Hainan is positioning itself as a strategic hub where domestic and international economic circulations converge.

During the first month of island-wide special customs operations, what key data or concrete examples best demonstrate how the system is working in practice?

What have been the biggest challenges so far, and how has Hainan addressed them?

Based on feedback from all sides, the island-wide special customs operations have run smoothly and in an orderly manner, with an encouraging start. Results are evident in the smooth flow of goods, the facilitation of personnel mobility and the aggregation of factors.

First, policy dividends have been effectively unleashed. In the first month from December 18 to January 17, the number of entities benefiting from the zero-tariff policy increased by over 10,000, maintaining steady growth. The value of imported goods reached 750 million yuan ($107 million), a year-on-year increase of 38.9 percent.

Local enterprises, hospitals and research institutions in Hainan have also begun using zero-tariff goods and equipment. Enterprises in such sectors as tourism and transportation can also enjoy zero tariff on aircraft, vessels and vehicles used for operational purposes.

Several key policies have been rolled out, including those concerning the cumulative value-added rule for calculating import tariffs exemption for bonded processing, value-added processing using locally produced Hainan inputs, “both ends abroad” bonded maintenance and repair (the maintenance and repair of foreign goods and equipment such as engines and airplanes—Ed.), and the list of prohibited and restricted import and export goods and items. These measures have encouraged Hainanbased enterprises to extend their industrial chains and move up the value ladder. The duty-free sales supervised by customs reached 4.86 billion yuan ($697 million), up 46.8 percent year on year, and the number of shoppers rose 30.2 percent year on year to 745,000.

Second, the appeal of opening up has grown notably. The island province completed 32,800 flight take-offs and landings, a month-on-month increase of 9.8 percent.

Inbound and outbound passenger trips through Hainan’s “first-line (between Hainan and overseas markets) ports” reached 289,000, a year-on-year increase of 31.3 percent. Of those, 82,000 were visa-free entries, up 64 percent year on year. Additionally, the entry and exit of international vessels saw a year-on-year growth of 19.6 percent.

The province has seen 26,800 new business entities, with the proportion of new enterprises in the total increasing from 42 percent before the start of special customs operations to nearly 80 percent.

New foreign-invested enterprises grew by 13 percent year on year, and over 5,100 new foreign trade enterprises were registered, reflecting a further optimization of the economic structure. German company, Siemens Energy, for example, has established its first gas turbine assembly base and service center in Hainan.

Third, internal and external conditions continue to improve. As the benefits of Hainan’s special customs operations take effect, duty-free shopping, trade and cultural and sports tourism have become hot topics in domestic and international media and among the public.

Under special customs operations, the Hainan FTP operates on a framework of “opening the first line, controlling the second line and allowing free flow within the island.” “Opening the first line” refers to implementing a series of measures for free and convenient entry and exit between the Hainan FTP and other countries and overseas regions. “Controlling the second line” refers to precise regulation of entry and exit

between the Hainan FTP and other regions on the Chinese mainland. Here, precise controls are applied to manage what has been liberalized at the “first line.” Within the island, goods and other factors of production can flow relatively freely.

At present, the biggest challenge is how to implement efficient and precise control at the “second line,” ensuring security while maintaining convenient customs clearance. To address this, we are focused on achieving both flexibility and effective management. We are improving our regulatory service system through one-stop customs clearance, smart supervision and credit management, while cracking down on smuggling, terrorism, online fraud, illegal gambling, drugs and other crimes.

Our primary goal is to create a safe, stable, transparent and predictable development environment, giving global investors confidence and ensuring security for their investments and growth in Hainan.

For international investors and entrepreneurs still observing and assessing the situation, what is the core message you want to convey?

Currently, 22 Fortune Global 500 foreign-invested enterprises have established operations in Hainan. To date, 131 headquarters or regional headquarters have been established here, with investment from 180 countries and regions. Both the total volume and growth rate of foreign direct investment in Hainan rank among the highest nationwide. We genuinely sense that Hainan is becoming a new frontier for China’s opening up, a new hub for regional mutually beneficial cooperation and a new engine driving globalization.

Inbound passengers line up at the Haikou Meilan Border Inspection Station to complete border inspection procedures in Haikou, Hainan Province, on January 17

Choosing Hainan means choosing opportunity; investing in Hainan means investing in the future.

First, the scale of opening up is unprecedented. The Hainan FTP is designed to align with the world’s highest levels of openness, implementing trade and investment liberalization and facilitation policies that meet international standards. The zero-tariff policy has been greatly expanded, now covering 6,637 tariff lines—74 percent of all lines.

The port operates under China’s shortest negative list for foreign investment access and has pioneered the nation’s first negative list for cross-border trade in services. (A negative list specifies only what’s off-limits, opening all other sectors to foreign investment or trade by default—Ed.)

It has introduced 22 special measures to ease market access and taken the lead in opening sectors such as value-added telecommunications, education, healthcare and legal services to foreign investment.

Second, the foundation for industrial development is solid. Drawing on Hainan’s opening-up policies, natural resources and trends in technological and industrial transformation, we are strengthening, extending and upgrading four leading industries: tourism, modern services, the hi-tech sector and tropical high-efficiency agriculture. We are also developing strategic emerging industries such as seed industry, deep-sea exploration, commercial aerospace, green and low-carbon initiatives and the digital economy. At the same time, we are cultivating future industries including biomanufacturing, hydrogen energy, brain-computer interfaces and embodied intelligence. The goal is to build a modern industrial system that is advanced, distinctive and well-structured. The investment opportunities are vast.

Third, the business environment continues to improve. We are accelerating the development of a first-rate business environment that is market-oriented, law-based and internationalized. Dedicated government agencies have been set up to oversee its daily advancement, ensuring equal treatment and fair competition for both domestic and international investors.