SOURCE / GT VOICE
GT Voice: Strong start of duty-free policy adds to opening-up of Hainan
Published: Nov 09, 2025 11:23 PM
Consumers choose goods in a duty-free store in Haikou, South China's Hainan Province, on November 2, 2025. Photo: VCG

Consumers choose goods in a duty-free store in Haikou, South China's Hainan Province, on November 2, 2025. Photo: VCG

In the first week following the rollout of Hainan's new duty-free shopping policy, Haikou Customs recorded 506 million yuan ($71 million) in duty-free sales, a robust increase of 34.86 percent year-on-year, the Guangming Ribao reported on Sunday.

This impressive sales performance not only shines a spotlight on the strong vitality of China's consumer market, but also serves as a vivid testament to the accelerating development of the Hainan Free Trade Port, adding a brilliant touch to its ongoing opening-up journey.

A notable feature of the new policy is its expansion of duty-free products from 45 to 47 categories, to include products such as pet supplies, portable musical instruments, mini drones and small home appliances. This shift captures the new trend of consumption upgrading among China's middle class and reflects Hainan's efforts to unlock deeper consumption potential through a more diverse range of commodity supplies.

Behind this shift lies the comprehensive advancement of the Hainan Free Trade Port. As a phased and supporting measure, the adjustment of the duty-free policy aims far beyond simply stimulating consumption. In the Master Plan for the Construction of the Hainan Free Trade Port, duty-free shopping is positioned as a component for enhancing trade liberalization and facilitation. Efforts to include domestic brands and enhance shopping convenience for island residents demonstrate Hainan's ambition to transition from a marketplace for international goods into a dynamic platform where both global and Chinese brands are displayed and traded.

Looking at the development experience of mature free trade ports worldwide, the in-depth integration of duty-free policies with local economic development has become a universal consensus. Singapore, with its comprehensive duty-free policy system, has turned Changi Airport into a world-renowned shopping paradise while also promoting the coordinated development of industries such as air logistics, high-end retail, and financial settlement. 

China's Hong Kong has attracted global commodities through its zero-tariff policy, forming a positive cycle of duty-free policies boosting consumption, consumption driving industries, and industries consolidating status, which continuously strengthens its position as an international shipping and trade center.

Hainan is following a similar path. 

One groundbreaking move is the inclusion of Chinese products in duty-free sales, establishing Hainan as a two-way opening-up platform for "bringing in" and "going global": domestic brands gain global exposure, while international brands gain access to Chinese consumers. This dual approach enriches domestic consumption options and provides a vital international stage for local enterprises to expand their global footprint.

At a time of rising global trade protectionism, Hainan's opening-up practices are of greater contemporary significance. Hainan is China's first province to transform an entire island, spanning 34,000 square kilometers, into a free trade port that serves as a testing ground for the unrestricted flow of goods, services, capital and data. Behind this large-scale breakthrough is China's resolve to promote high-level opening-up.

As Liang Haiming, dean of the Hainan University Belt and Road Research Institute, wrote in an article in August, Hainan is becoming an important hub connecting China with markets in the Asia-Pacific, Southeast Asia, and South Asia. Leveraging its superior geographical location and increasingly improved free trade system, it is expected to become an "open gateway facing the Pacific and Indian Oceans," further enhancing China's position in regional economic cooperation.

The strong start of the new duty-free policy represents just the beginning of Hainan's opening-up journey. With the island preparing to launch independent customs operations, the full implementation of zero-tariff policies and more efficient cross-border flows are expected to unlock even greater potential. This continued progress will reinforce Hainan's role as a testing ground for China's high-level opening-up while sending a clear message to the world about China's unwavering commitment to global economic cooperation.