Hainan FTP becoming brand name for country's institutional opening-up

In the face of growing uncertainties in the global economy, China's response is to deliver on its commitment to higher-level opening-up with concrete actions, to fight protectionism with firm resolve and promote an open world economy.

This is demonstrated by the positioning of the Hainan Free Trade Port as an important gateway to the Chinese market, a new frontier for China's institutional opening-up, a new hub for regional mutually beneficial cooperation and a new engine driving economic globalization.

Seeing is believing.

One week after the launch of the Hainan special customs operations on Dec 18, which effectively turned the entire island into a special customs supervision zone, the island province has already witnessed a remarkable upsurge in trade, consumer spending and tourist arrivals.

On the day the special customs operations came into effect, local customs reported imports of goods worth 360 million yuan ($50.6 million) via the "first line" connecting Hainan with overseas markets.

The arrangement, which allows much freer entry of overseas goods and expands zero-tariff coverage, has not only facilitated the smooth flow of goods, including commodities such as crude oil and aviation materials, but also reduced costs for businesses, enhancing Hainan's position as a key hub in the global allocation of resources.

At the same time, consumer spending on the island has surged dramatically, particularly in the duty-free sector. Thanks to the new policy, the number of kinds of zero-tariff goods in Hainan has increased from 1,900 to 6,600, making it a popular shopping destination for customers lured by the promise of diverse product offerings and attractive prices.

The Sanya municipal bureau of commerce reported that from Dec 18 to 21, duty-free sales in the city were 118 million yuan, 105 million yuan, 108 million yuan, and 102 million yuan, respectively, breaking the 100 million yuan mark for four days in a row, signaling Hainan's growing importance as a retail center.

It also reflects Hainan's boosted appeal as a tourist destination. Tourism, a cornerstone of Hainan's economy, has experienced a significant boost. The island's new customs policies, which include streamlined entry procedures and expanded visa-free access, have made it an attractive destination for foreign travelers. Previously, it took nearly an hour for 100 foreign visitors to complete border checks, but now thanks to simplified customs procedures it takes less than 10 minutes.

International flight bookings to the provincial capital Haikou for the upcoming New Year's Day holiday have already increased by over 40 percent year-on-year.

On Sunday, Hainan initiated its first seventh-freedom rights route, which allows an airline to operate flights between two foreign countries without returning to its home country, further enhancing the island's connectivity and appeal. This development is expected to attract more international airlines and tourists, thereby boosting Hainan's tourism and related industries.

The significance of these developments extends beyond Hainan, as it is becoming a strategic point where China's internal cycle and its international trade overlap.

For China, the successful launch of the Hainan FTP special customs operations serves as a model for future economic reforms and liberalization efforts. It demonstrates the potential of special economic zones to drive growth, attract foreign investment and enhance China's integration into the global economy. And as goods, capital, and talent flow more freely between Hainan and the world, more businesses will realize that choosing Hainan is choosing opportunity and investing in Hainan is investing in the future.

The special customs arrangement in Hainan is just a beginning. As time goes on and it proceeds to steadily and carefully pilot new policies and advance reforms step by step, the Hainan FTP can become a brand name for China's higher-level opening-up and a force for stability, cooperation and progress in a turbulent world.