An aerial drone photo shows the construction site of key projects of the Central Business District in Sanya, south China's Hainan Province, Feb. 16, 2025. (Xinhua/Zhao Yingquan)

 China's Hainan Free Trade Port will launch full-island independent customs operations on December 18, with the proportion of zero-tariff product tariff lines soaring from 21 percent to 74 percent, China's top economic planner announced at a press conference on Wednesday. 

The move is a major step in the country's high-level opening-up and is poised to significantly enhance the liberalization and facilitation of trade, experts said.

Wang Changlin, deputy head of the National Development and Reform Commission (NDRC), announced that the free trade port will launch island-wide independent customs operation on December 18, 2025. The proportion of tariff lines with zero-tariff products in Hainan Free Trade Port will increase from 21 percent to 74 percent.

When highlighting the symbolic significance of launching island-wide independent customs operations on December 18, Wang noted that the same date in 1978 marked the opening of the Third Plenary Session of the 11th CPC Central Committee, which ushered in China's historic journey of reform, opening-up, and socialist modernization. 

He said that initiating the operation on this milestone day reflects China's unwavering commitment and confidence in advancing high-standard opening-up.

Vice Minister of Finance Liao Min noted that duty-free items in Hainan will increase from about 1,900 to about 6,600, a significant boost in openness.

Imported products that undergo at least 30 percent value-added processing in Hainan can enter the Chinese mainland tariff-free. Certain goods currently banned or restricted nationwide will enjoy open policies in Hainan.

"We will take a targeted regulatory approach of low intervention and high efficiency for zero-tariff and relaxed management goods, ensuring smooth implementation of the opening-up policies," Wang said.

The NDRC also emphasized that after customs closure, Hainan's exchanges with the international community will become smoother, while its connections with the mainland will remain convenient and efficient.

In terms of international travel, citizens from 85 countries can enter Hainan visa-free. And, aside from certain categories of goods entering the mainland from Hainan which will undergo inspection, the majority of goods, along with all individuals, items and means of transport entering or exiting Hainan, will remain subject to existing regulations with no changes, according to the NDRC.

The expansion of Hainan's zero-tariff policy to cover 74 percent of total tariff lines represents a substantial step in promoting trade liberalization and facilitation. By significantly expanding the zero-tariff goods list, Hainan is expected to become one of the most competitive free ports in the Asia-Pacific region, Liang Haiming, dean of the Hainan University Belt and Road Research Institute, told the Global Times on Wednesday.

"Such an opening-up scale is rare globally, indicating that China has entered a new stage in promoting institutional opening-up," Liang said.

"We view full-island independent customs operations as a pivotal milestone for Hainan, marking a fresh phase of development. This will let the island leverage integrated policy strengths to deepen opening-up, ensuring steady flows of high-quality factors like talent, capital, and data," William Huang, managing partner of EY China South, told the Global Times on Wednesday. 

Officials have unveiled policy innovations to enhance Hainan's global competitiveness. The Ministry of Commerce will introduce targeted measures to boost innovation in goods, services, and digital trade. Additionally, customs authorities will simplify exit procedures for goods leaving the island, cutting declaration items from 105 to 42, according to the press conference.

Enterprises in Hainan are looking forward to the introduction and implementation of relevant policies. 

"We are all looking forward to the introduction and implementation of relevant policies, the liberalization of trade to align with high international standards, and the attraction of more domestic and foreign talent to settle in Hainan Island," Victor Lee, CEO of Hainan Yanghang Industrial Co, told the Global Times on Wednesday.

Jingbo (Hainan) New Materials Co, told the Global Times on Wednesday that it plans to further utilize policy advantages to expand bulk trade scale, explore export markets and enhance comprehensive competitiveness.

Wang Haiye, director and general manager of Hainan Free Trade Port's one-stop aircraft maintenance industrial base, told the Global Times on Wednesday that it aims to leverage the port's policy advantages to expand the aircraft maintenance market and become a high-level, intelligent one-stop aircraft maintenance platform serving the global market.

In goods trade, EY's Huang expects that Hainan, with a streamlined customs supervision mechanism, will connect closely with the mainland's unified market and foreign resources, and leverage its role as a "testing ground" to help explore, launch and grow new cross-border trade businesses and models.

In services, Huang expects Hainan to leverage its strengths to develop high-end sectors like research and development, healthcare, finance and professional services, becoming a flagship for China's services sector opening-up.

Hainan's remarkable economic achievements demonstrate the success of its opening-up strategy. Feng Fei, governor of Hainan Province, stated that over the past five years, the island has attracted 102.5 billion yuan ($14.31 billion) in foreign investment with an impressive 14.6 percent annual growth rate, while 8,098 new foreign enterprises were established at a yearly expansion pace of 43.7 percent.

Liang said that as a policy "testing ground," Hainan's achievements will offer replicable experiences to optimize China's overall business environment and elevate its position in global trade and investment. 

He added that the free trade environment will stimulate cross-border flows of capital, technology and talent, fostering a vibrant international business ecosystem and driving regional prosperity. In the long run, Hainan's success may also serve as a reference for developing countries in building free trade ports, promoting a more open, inclusive and mutually beneficial global economy.