Inbound passengers go through border inspection procedures at Haikou Meilan International Airport in Haikou, south China's Hainan Province, Oct. 15, 2025. Hainan has handled 2 million inbound and outbound trips crossing the border this year as of Oct. 15, with foreign travelers accounting for 53 percent of the total, according to the Haikou General Station of Immigration Inspection. Hainan has long enjoyed favorable visa-free entry policies in China. The majority of foreigners who enter Hainan do so under the visa-free entry policy. (Xinhua/Yang Guanyu)

China on Friday announced measures to expand Hainan's duty-free shopping policy for departing travelers, adding new categories of goods and increasing the annual purchase allowance, according to the Ministry of Finance (MOF), a move analysts say will further boost consumption and promote opening-up.

The new policy increases the list of eligible goods to 47 categories, including pet supplies and portable musical instruments, per an MOF announcement.

It now allows all travelers aged 18 and above, including Hainan residents leaving the island, to make duty-free purchases up to 100,000 yuan ($14,037) per year, with no limit on the number of transactions, the announcement said.

The measures will take effect on November 1, 2025, aiming to better meet the diverse shopping needs of consumers and support the development of the Hainan Free Trade Port (FTP), per the ministry.

MOF, together with the General Administration of Customs, and the State Taxation Administration jointly released the announcement on Friday, outlining the adjustments to the Hainan duty-free shopping policy.

According to the new policy, the list of duty-free goods for departing travelers has been expanded to 47 categories, up from 45, with new additions including pet supplies, portable musical instruments, micro drones, and small home appliances.

Certain domestic products, including clothing and accessories, shoes and hats, ceramics, scarves, coffee, and tea, are now allowed to be sold in duty-free shops on the island, with value-added and consumption taxes eligible for exemption or refund, per the announcement.

In addition, the minimum age for duty-free shopping has been raised from 16 to 18. Departing travelers are now eligible to enjoy the policy, with purchases counting toward the annual 100,000-yuan duty-free allowance and no restriction on the number of transactions.

Hainan residents who have a record of leaving the island within a calendar year may also make unlimited purchases of duty-free goods under the "buy-and-pick-up" system during that year, in accordance with relevant collection requirements, per the MOF.

"The policy adjustments are expected to broaden the coverage of Hainan's duty-free shopping program, increase the variety of available goods, enhance the shopping experience for consumers, improve the sense of benefit for local residents, and further advance the development of the Hainan FTP," the MOF statement said.

Such adjustments are expected to further boost consumption and attracting visitors, reflecting China's ongoing progress in promoting institutional opening-up, Liang Haiming, dean of the Hainan University Belt and Road Research Institute, told the Global Times.

The Hainan FTP is currently advancing its border control preparations, which are scheduled to begin full-island operations on December 18, with officials saying that all preparations are basically complete.

Friday's adjustments add to China's broader efforts to further promote trade liberalization and facilitation in Hainan, where the proportion of zero-tariff product lines is set to rise from 21 percent to 74 percent, according to China's top economic planner, the National Development and Reform Commission, in July 2025.

By significantly expanding the duty-free shopping policy and the zero-tariff goods list, Hainan is expected to become one of the most competitive free ports in the Asia-Pacific region, according to the expert.

The number of duty-free items in Hainan will increase from about 1,900 to around 6,600, marking a significant boost in openness, official data showed.

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 said in July that it will simplify exit procedures for goods leaving the island, cutting declaration items from 105 to 42, according to the press conference.

Global Times