Hainan FTP becomes hot spot on policy breakthrough

Beyond transient tourist spending, global corporations are making substantial long-term commitments, seeing Hainan not merely as a retail outlet, but as a strategic beachhead in the Asian market.

US luxury group Tapestry Inc plans to add over 60 new stores in China over the next three years, with Hainan being a critical component. Sandeep Seth, chief growth officer and president of Tapestry International, said that many of these opportunities stem from China's expanded island-departure duty-free policy in Hainan FTP, as well as the "Shopping in China" initiative — part of the country's broader push to deepen market liberalization and spur inbound consumption — alongside young consumers' rising appetite for self-expression.

Tapestry said its Coach flagship store in Sanya has already seen stronger tourist traffic and broader purchasing demand under the upgraded policy.

"With China's strong consumption fundamentals and policy support, we are fully committed to long-term investment in Hainan FTP," said Seth.

Tesla, which established its presence in Hainan in 2020, reported nearly 30 percent year-on-year growth in vehicle deliveries in the province during the first half of 2025. "We firmly believe in the enormous potential of China's consumer market," a Tesla China representative said in a statement to China Daily. "As Hainan Free Trade Port develops and China opens further, this market will release even greater vitality."

"China is not only one of the world's largest automotive markets, but also a global leader in the new-energy transition. Consumer acceptance of intelligent and green mobility is growing, while the demand for high-quality products and services continues to rise," the Tesla China representative said.

The logistics sector is equally optimistic. "We are confident that the island-wide special customs operations at Hainan FTP will lead to a higher benchmark of streamlined imports and exports, free and efficient flows of people, goods and capital, and deepened regional and global economic integration," said Poh-Yian Koh, president of FedEx China. "These factors will further support our growth." FedEx operates over 300 weekly international flights to and from China and plans to leverage Hainan's new status to build smarter supply chains.

The business confidence is materializing in concrete developments. In the core area of Sanya's Haitang Bay National Coastal Recreation Park, Taikoo Li Sanya — a 213,700-square-meter resort-style premium retail complex — is taking shape as the third phase of the Sanya International Duty Free Shopping Complex. It is developed by UK company Swire Group in collaboration with China Tourism Group Duty Free. Scheduled for phased completion from 2026, it represents a bet on Hainan's long-term luxury retail ascendancy.

The tourism and hospitality industry is following suit. "We will further strengthen our sun-and-beach offerings with new projects in Sanya," said Stephane Maquaire, president and CEO of Club Med, a Paris-based travel and lifestyle brand and a subsidiary of China's Fosun International Ltd. He cited supportive policies and rising demand as key drivers for expanding and innovating resort offerings in China.

Analysts observe that Hainan's transformation transcends provincial development, representing a microcosm of China's broader strategy to deepen market liberalization and stimulate inbound consumption through initiatives like "Shopping in China".

Bai Ming, a researcher at the Chinese Academy of International Trade and Economic Cooperation, said, "Hainan is evolving from a tourism island to a comprehensive consumption hub. For multinationals, it now serves as both a lucrative retail market and a testing ground for products and retail formats before a broader mainland rollout."

Despite the evident boom, challenges persist. Infrastructure must keep pace with surging visitor numbers, service industries require upskilling to meet international standards, and the ecosystem for high-value industries like biomedicine and technology — bolstered by initiatives like the newly launched Hainan International Technology Market — needs time to mature fully, experts added.

Yet, the prevailing sentiment is overwhelmingly optimistic. As dusk falls on Sanya, the duty-free complexes remain brightly lit. Foreign tourists browse handbags while comparing prices on the latest drones.

From the wait lines for electronics to the rush for tropical fruit from the multilingual chatter on beaches to the boardroom decisions in global headquarters, Hainan is showcasing, with unprecedented dynamism, a new chapter in China's high-standard opening-up.

As more policy dividends are released and infrastructure matures, this tropical island is accelerating its metamorphosis into a golden hub connecting the vast Chinese market with global opportunities — a place where the world comes to shop, play and build the future, experts added.

Contact the writers at masi@chinadaily.com.cn