On 18 December, the Chinese authorities introduced an independent customs regime for Hainan Island, which allows for freer importation of foreign goods and expands the range of products eligible for zero tariffs, according to Xinhua.
This is one of the most significant steps in China’s efforts to promote free trade and greater economic openness, the publication notes.
The island, which covers an area of more than 30,000 square kilometres, has been declared a special customs control zone. The business environment for foreign companies here will be more in line with international standards, with lower taxes and production costs, as well as expanded access to services, including healthcare and education. Businesses will be able to use Hainan as a platform to enter the huge mainland Chinese market, Xinhua notes.
The list of goods exempt from customs duties at the port of Hainan has been expanded from 1,900 to 6,600, and the share of such goods in total shipments will increase from 21% to 74%.
In addition, in accordance with current regulations, these goods can be shipped to mainland China after processing, creating added value of at least 30%.
Hainan became a special economic zone in China in 1988. According to official data, more than 9,600 new enterprises with foreign investment have been established in the province since 2020.
Hainan’s GDP last year was $113 billion, which is comparable to the world’s 70th largest economy, according to the World Bank.
