Hainan Free Trade Port: A Strategic Shift Toward "Institutional Opening"

Chinese economist Huang Hanquan, President of the Academy of Macroeconomic Research, highlighted that the launch of island-wide special customs operations in Hainan marks a new era for China's economy. The port is transitioning into a diverse, high-quality global trade hub.

1. Major Customs and Tax Perks

• Zero Tariffs: Duty-free tariff items are expected to cover nearly 70% of total categories.

• Manufacturing Boost: New rules providing customs waivers for value-added processing will drastically lower operational costs for pharmaceuticals and advanced manufacturing.

• Talent Magnet: Preferential income tax rates are being implemented to attract international firms and highly skilled professionals.

2. Future Industries and Consumption

• Emerging Sectors: The port will accelerate growth in offshore wind power, commercial aerospace, and cross-border data management.

• Global Shopping Hub: Enhanced duty-free shopping policies for both tourists and residents are set to drive massive domestic consumption growth.

3. The "Institutional Opening" Model

Huang emphasized that Hainan serves as a pilot for China’s shift from an "assets-and-goods" opening model to an "institutional opening" model, aligning the province with high-standard international economic and trade rules.