Illustration: Xia Qing/GT

The number of foreign trade entities in South China's Hainan Free Trade Port (FTP) has surpassed 100,000, with 4,709 new registrations recorded between December 18, 2025, and January 10, 2026, following the launch of island-wide special customs operations on December 18, the Xinhua News Agency reported. The reform, which eases entry for overseas goods, expands zero-tariff coverage, and introduces business-friendly facilitation measures, has spurred a rapid market response.

This surge reflects growing confidence in Hainan's business environment and China's high-level opening-up. Market participants are responding to tangible measures that lower barriers, reduce costs, and create predictable conditions for trade, signaling China's progress in advancing high-level opening-up while strengthening economic resilience amid global uncertainty.

Against a backdrop of intensifying protectionism in international trade, enterprises establishing a presence in Hainan are making forward-looking commitments rather than temporary moves. Their decisions indicate expectations of sustained business opportunities, supported by China's broader efforts to maintain a stable, open, and resilient economic environment.

This growing business confidence is also mirrored by a surge in consumer activity in Hainan FTP since the launch of the island-wide special customs operations. From December 18, 2025 to January 10, 2026, 585,000 duty free shopping trips under customs supervision were recorded, with total sales reaching 3.89 billion yuan, up 49.6 percent year-on-year, according to Chinese customs data.

Beyond the short-term boost to the local economy and service sectors, this is expected to develop into a positive trend as Hainan boasts the potential to become a long-term hub for duty-free retail, cross-border trade, and tourism, supported by stable policies, improved customs facilitation, and a growing reputation as a high-standard opening-up platform.

The expansion of trade entities and the consumption boom both reflect rising confidence in China's commitment to high-standard opening-up and vast potential in international trade and consumption. By advancing rule-based facilitation, lowering structural trade costs, and aligning more closely with international economic and trade standards, Hainan demonstrates China's commitment to opening-up wider to the world, which is creating more opportunities for foreign trade businesses. For businesses, China's policy consistency is key in shaping long-term investment, underscoring Hainan's strategic role in China's broader opening-up agenda.

In the next phase, the clustering of over 100,000 market entities is expected to further drive the upgrading and improvement of industrial and supply chains. Free circulation of zero-tariff goods across the island enables enterprises to extend industrial chains and increase value-added production. 

Hainan's transition from a "policy high ground" to a "development high ground" is, in essence, a vivid experiment in China's exploration of a higher-level open economic system. The region's growing dynamism not only cultivates a new growth pole locally but also injects fresh opening momentum into the Chinese economy by integrating resources and enhancing international competitiveness.

The local customs authority in Hainan has pledged to closely align its operations with the actual development needs of enterprises, as well as to continue optimizing regulatory models, and improve service efficiency to ensure smooth cross-border trade, Xinhua reported. These measures are expected to further reduce institutional transaction costs and improve operational predictability for businesses. 

By adopting more refined service-oriented regulations, customs facilitation will better support areas such as offshore trade, cross-border e-commerce, and services trade. As regulatory efficiency continues to evolve in step with market demand, Hainan is expected to strengthen its position as a key gateway for China's high-level opening-up, providing a stable and attractive platform for long-term international business engagement.

The rapid expansion of trade entities, the continuous improvement of trade facilitation, and the growing confidence of market participants together illustrate a broader narrative: China's opening-up is a strategic path to promote stable growth in its economy, while continuing to share its development opportunities with the world. Hainan, as both a testing ground and a showcase, embodies this approach, demonstrating how proactive policy design and institutional innovation can drive sustainable growth while enhancing global competitiveness.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn