Resident Zero-Tariff Policy Launches as Spring Festival Duty-Free Sales Post Strong Holiday Growth.

The primary policy development in February was the launch of a new zero-tariff imported consumer goods policy for eligible Hainan FTP residents and the opening of the island’s first five daily-goods duty-free stores, while Spring Festival customs data showed strong year-on-year growth in offshore duty-free sales and reported zero-tariff and processing-trade activity during the holiday period.

TRADE HIGHLIGHTS

Resident Zero-Tariff Consumer Goods Policy Announced (February 4–5)

In a joint notice dated February 4 and publicly announced on February 5–6, 2026, the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration introduced a new zero-tariff policy on imported daily consumer goods for eligible Hainan FTP residents, effective upon promulgation. Eligible residents, Chinese citizens holding a Hainan identity card, Hainan residence permit, or Hainan social security card, as well as overseas personnel working and residing in Hainan with valid residence permits, receive an annual duty-free shopping quota of ¥10,000 (1万元), with no limit on purchase frequency.

The policy exempts import duties as well as VAT and consumption tax at the import and domestic stages, on eligible goods purchased at designated qualified duty-free stores, within the quota and product-list limits. Eligible goods fall within designated food and beverage, daily chemical products, household, and maternal-and-child categories, as defined in the official positive list.

📎 Source: State Taxation Administration policy database (财关税【2026】6号) (2026-02-04/05) https://fgk.chinatax.gov.cn/zcfgk/c102416/c5247571/content.html  📎 Parallel source: State Council / gov.cn (English) (2026-02-05) https://english.www.gov.cn/news/202602/05/content_WS6984420bc6d00ca5f9a08ecf.html

First Five Resident Daily-Goods Duty-Free Stores Opened (February 11)

Following a press conference on February 6, Hainan’s first batch of five island-resident daily consumer goods duty-free stores (日用消费品免税店) opened on February 11, 2026, ahead of Spring Festival. The stores are located in three cities: three in Haikou (Guomao, Chengxi, and West Coast commercial districts), one in Sanya’s Central Business District, and one in Danzhou’s Xiari Plaza. The Hainan provincial government stated it adopted a “稳妥有序、风险可控” (steady and orderly, risk-controllable) approach, with plans to expand the store network in subsequent batches.

In the first two weeks after opening, the five stores attracted 46.5万人次 (465,000 visitor-trips), as reported by Hainan Governor Liu Xiaoming at the National People’s Congress open session on March 7, 2026, indicating notable initial foot traffic, though no official benchmark for expected volume has been published. A CPC Hainan Deep Reform Office (自贸港工委办) press briefing on February 26 reported cumulative shopping value at the five stores of 874.61万元 (RMB 8.7461 million) from opening through approximately late February; this figure includes both zero-tariff and taxed goods sold in the same stores (含完税商品). The zero-tariff component alone was not separately disclosed for this period.

📎 Source: Xinhua (press conference) (2026-02-06) https://www.news.cn/20260206/00915410e9c748b9bc578611764e69f0/c.html  📎 Parallel source: CPC Hainan Deep Reform Office briefing via China News Service (2026-02-26) https://hi.people.com.cn/n2/2026/0227/c231190-41510499.html

Spring Festival Offshore Duty-Free Sales: 27.2亿元 (+30.8% YoY)

During the 2026 Spring Festival holiday (February 15–23, nine days), Haikou Customs supervised offshore duty-free (离岛免税) sales of 27.2亿元 (RMB 2.72 billion), an increase of 30.8% compared with the 2025 Spring Festival holiday (January 28 – February 4, 2025). The number of items sold was 199.7万件 (1.997 million items), up 21.9% year-on-year. The number of shoppers reached 32.5万人次 (325,000 shopper visits), up 35.4%.

This was the first Spring Festival following the December 18, 2025 island-wide customs closure (封关运作). The year-on-year comparison base is the 2025 Spring Festival, which preceded customs closure; from the published figures alone, the data does not isolate the contribution of the new policy environment from seasonal holiday demand.

📎 Source: General Administration of Customs / customs.gov.cn (2026-02-26) https://www.customs.gov.cn/customs/2026-02/26/article_2026022609141372350.html  📎 Parallel source: Xinhua (2026-02-25) https://www.news.cn/20260225/370a01c4ef5942859a636f86f968ae48/c.html

Duty-Free New Policy 100-Day Cumulative: 115.85亿元 (+14.71% YoY)

On February 9, Haikou Customs disclosed that from November 1, 2025 (when the latest round of duty-free policy adjustments took effect) through February 8, 2026, a period of 100 days, cumulative offshore duty-free sales reached 115.85亿元 (RMB 11.585 billion), up 14.71% year-on-year. A parallel release via CCTV, with data through February 11, placed the cumulative figure at 121.1亿元 (RMB 12.11 billion), up 13.9%.

The November 1 policy adjustments expanded the product range from 45 to 47 categories, extended eligibility to departing (离境) travellers, and allowed six categories of domestic goods into duty-free stores.

📎 Source: People’s Daily Hainan (citing Haikou Customs) (2026-02-10) https://hi.people.com.cn/n2/2026/0210/c231190-41498195.html  📎 Parallel source: CCTV Economics (2026-02-13) https://jingji.cctv.com/2026/02/13/ARTIV4Rb2ozbSLO9ckPpHPxi260212.shtml

Customs Port Trade Up More Than 9% YoY in First Two Months Post-Closure

In an interview published by China Daily on March 10, 2026, Hainan Governor Liu Xiaoming stated that in the first two months after island-wide customs operations began on December 18, 2025, imports and exports at local customs ports grew by more than 9% year-on-year. Additional figures from the same interview: new foreign-invested enterprises rose 45.6%; 55.77万人次 (557,700 traveller entries and exits) passed through Hainan’s international ports; and 14.1万人次 (141,000) were visa-free foreign visitor entries, a 62.2% year-on-year increase.

A CPC Hainan Deep Reform Office (自贸港工委办) press briefing on February 26 stated that from December 18, 2025 to February 17, 2026, Hainan added 4.79万户 (47,900) new business entities province-wide, a year-on-year increase of 30.15%.

Note: No standalone February monthly import/export aggregate had been located in official sources reviewed for this report. The governor’s two-month post-closure figure is one of the clearest published aggregate indicators of post-closure customs-port trade activity in the sources reviewed.

📎 Source: China Daily Chinese (Governor Liu Xiaoming interview) (2026-03-10) https://cn.chinadaily.com.cn/a/202603/10/WS69afb1dba310942cc49a2519.html  📎 Parallel source: CPC Hainan Deep Reform Office briefing via China News Service (2026-02-26) https://hi.people.com.cn/n2/2026/0227/c231190-41510499.html

WHAT IT MEANS

The primary policy development in February was the launch of the resident zero-tariff consumer goods policy, which extends zero-tariff treatment to eligible island residents, in addition to earlier enterprise, and traveller-facing policy channels. The annual quota is set at 10,000 yuan per person. Published data indicates that 465,000 visitor-trips were recorded at the five new stores in their first two weeks, indicating notable initial foot traffic. Cumulative shopping value at those stores reached 874.61丧元 (RMB 8.7461 million, including both zero-tariff and taxed goods) from opening through approximately late February. The policy is still too new to support firm conclusions about broader economic impact.

The Spring Festival duty-free figures, 27.2亿元 in offshore duty-free sales, up 30.8% year-on-year, represent the largest single published monetary figure for February among the sources reviewed. The rise in shopper trips (35.4%) and items sold (21.9%) is consistent with broad-based consumer participation, though the published release does not break out spending by customer segment. The comparison base is the 2025 Spring Festival, which fell before customs closure; from the published figures alone, the data does not isolate the contribution of the new policy environment from seasonal holiday demand.

Zero-tariff imports during the Spring Festival holiday totalled approximately 4,860万元 (RMB 48.6 million), a figure that is small in absolute terms and modest relative to the 14.26亿元 in port-level imports reported for the same nine-day period. These figures cover only the holiday window and should not be treated as representative of a full month of activity. They confirm that the zero-tariff mechanism continued to function during the period; the available data does not yet establish the trajectory of zero-tariff uptake outside holiday windows.

Governor Liu’s two-month post-closure figure, a more than 9% year-on-year increase in customs-port imports and exports, indicates growth but is not directly comparable to duty-free retail growth rates reported elsewhere, which measure a different activity. No breakdown by imports, exports, commodity, or trading partner has been published for this period. The 45.6% increase in new foreign-invested enterprises is a registration-based metric and does not by itself indicate operational activity or capital deployment. The 47,900 new business entities (up 30.15% year-on-year) recorded province-wide from December 18 to February 17 is a separate figure from the CPC Deep Reform Office briefing and covers a slightly different window.

At this stage, the February data set confirms operational continuity and consumer-facing momentum. Duty-free retail is one of the most data-rich publicly reported segments in the February source set. The resident zero-tariff policy is institutionally significant, but still too new to support firm conclusions about broader economic impact. No standalone monthly trade figures for February have been located in official sources reviewed, and the available two-month aggregate lacks the granularity needed to assess sector-level or partner-level trade patterns.

BOTTOM LINE

The primary February development was the launch of the island-resident zero-tariff consumer goods policy and the opening of Hainan’s first five daily-goods duty-free stores, which attracted 465,000 visitor-trips in two weeks and recorded cumulative shopping value of 874.61万元 (including both zero-tariff and taxed goods) by late February. Spring Festival offshore duty-free sales hit 27.2亿元 (+30.8% YoY), confirming that consumer-facing activity remains the most data-rich segment in the publicly available official releases.

Customs-port imports and exports in the first two months post-closure grew by more than 9% year-on-year. Holiday-period zero-tariff and processing trade volumes were limited, and the available data does not yet establish whether these figures reflect the normal operating scale of those policy tools.

The data shows operational continuity across the FTP’s customs and duty-free systems, with the strongest publicly visible data concentrated in the duty-free retail segment; enterprise-level trade-facilitation functions have not yet reached significant operational scale based on the data available.

Overview

Based on official customs statistics, this article reviews Hainan’s foreign trade performance in 2025, focusing on changes in imports and exports, trade structure, and major partner trends.

Hainan’s 2025 foreign trade data shows overall stability with internal rebalancing.

Official statistics released by Haikou Customs in January 2026 indicate that total foreign trade value for 2025 was broadly unchanged compared with 2024. Within that headline, imports increased while exports declined, and the mix of trade modes shows meaningful movement.

All figures below are taken from the 2025 annual statistical tables published by Haikou Customs and compiled under the Guangzhou Customs system.

1. Overall Trade Performance in 2025

Total trade

• Total import and export value: 27,600,339.79 (RMB, 10,000)
• Year-on-year change: –0.68%

Exports

• Export value: 9,494,579.95 (RMB, 10,000)
• Year-on-year change: –10.62%

Imports

• Import value: 18,105,759.84 (RMB, 10,000)
• Year-on-year change: +5.48%

The headline picture is a broadly stable total for the year, with a clear divergence between imports and exports. Based on customs statistics, this indicates a change in the composition of trade flows.

Chart 1 (annual totals)

2. Monthly Performance Pattern

Trade performance varied across the year.

Selected monthly year-on-year changes in total trade:

• March: –1.4%
• April: –15.44%
• July: –31.29%
• September: +25.53%
• October: +15.49%
• December: +32.15%

The second half of the year, and particularly the fourth quarter, showed a notable year-on-year increase compared with earlier months. This indicates that 2025 performance was uneven across the year, rather than moving in a single direction month after month.

Chart 2 (monthly YoY line).

3. Enterprise Structure: Who Is Trading

Trade by enterprise type shows a strong concentration in private-sector activity.

Share of total trade by enterprise type

• Private enterprises: approximately 71.6%
• Foreign-invested enterprises: approximately 19.6%
• State-owned enterprises: approximately 8.7%

Year-on-year performance

Private enterprises

• Total trade: +11.46%
• Exports: +16.30%
• Imports: +9.18%

Foreign-invested enterprises

• Total trade: –9.62%
• Exports: –30.83%
• Imports: +32.33%

State-owned enterprises

• Total trade: –40.31%
• Exports: –86.94%
• Imports: –26.36%

These figures indicate that private enterprises account for the largest share of Hainan’s recorded trade value in the customs tables, while foreign-invested enterprises were more active on the import side than the export side in 2025.

Chart 3 (enterprise totals)

4. Trade Mode: Composition Shift in the Data

Trade by mode (share of total)

• General trade: approximately 67.7%
• Bonded logistics: approximately 17.2%
• Processing trade: approximately 8.7%
• Other trade types: approximately 6.4%

Year-on-year changes

General trade

• Total: –5.70%
• Exports: –11.43%
• Imports: –1.85%

Bonded logistics

• Total: +16.33%
• Exports: –29.18%
• Imports: +45.59%

Processing trade

• Total: +13.40%
• Exports: +14.14%
• Imports: +12.77%

Bonded logistics imports increased significantly year-on-year, which is one of the clearest structural signals in the 2025 tables. This is consistent with a higher share of logistics-linked activity reflected in the trade mode breakdown.

Chart 4 (trade mode shares).

5. Transport Mode: How Goods Are Moving

Share of total trade by transport mode

• Sea transport: approximately 79.1%
• Air transport: approximately 12.2%
• Road transport: approximately 5.2%
• Rail transport: approximately 1.0%

Year-on-year changes

Sea transport

• Total: +3.02%

Air transport

• Total: +1.35%
• Imports: +20.97%
• Exports: –37.99%

Rail transport

• Total: +83.47%
• Imports: +114.43%

Sea transport remains the dominant channel by value in the customs tables. Air transport growth is driven primarily by imports, and rail transport remains a small share but shows rapid year-on-year growth from a low base.

Chart 5 (transport mode shares)

6. Major Trading Partners

Top trading partners by total trade value in 2025:

1. Australia: 3,508,098 million RMB, +8.32%
2. United States: 1,428,381 million RMB, –2.00%
3. Indonesia: 1,295,323 million RMB, –9.64%
4. Russia: 1,067,741 million RMB, –36.63%
5. Vietnam: 1,012,244 million RMB, –2.97%
6. United Arab Emirates: 949,981 million RMB, –11.46%
7. Hong Kong (China): 934,535 million RMB, –30.51%
8. Oman: 859,478 million RMB, +28.79%
9. Canada: 791,294 million RMB, –1.54%
10. Brazil: 772,891 million RMB, –20.54%

These partner rankings reflect diversification across commodity suppliers, regional markets, and major economies, as recorded in the customs partner table. This section does not include regional aggregates that are not explicitly published in the partner table.

7. Product Structure: What Was Traded

The product tables list published category totals and their year-on-year changes. Shares below are calculated using the published annual totals and rounded.

Main export categories (selected published category totals)

• Mechanical and electrical products: 40.3% of exports, –17.82%
• High-tech products: 13.8%, –39.39%
• Refined oil products: 10.0%, –34.42%
• Agricultural products: 6.1%, +0.95%
• Steel products: 5.3%, +24.37%
• Food products: 5.3%, –4.26%

Chart 6 (exports)

Main import categories (selected published category totals)

• Metal ores and concentrates: 26.6% of total imports, +9.36%
• Organic chemicals: 10.2% of total imports, –3.06%
• Agricultural products: 9.7% of total imports, +18.74%
• Crude oil: 9.2% of total imports, up 296.40% year-on-year
• Mechanical and electrical products: 8.7% of total imports, +44.52%
• Food products: 7.4% of total imports, +12.28%
• Cosmetics and personal care products: 6.7% of total imports, +4.85%
• High-tech products: 6.3% of total imports, +64.66%

Taken together, the tables show a contrast between declining export values across several major published export categories and increasing values across multiple major import categories, particularly energy-related items, industrial inputs, and consumer-related goods.

Chart 7 (imports)

8. What Changed, and What Did Not

What changed in 2025

• Imports accounted for the increase in total trade value while exports declined
• Bonded logistics trade volumes increased significantly year-on-year
• Import structure shows diversification across multiple major categories
• Export values declined across many published categories in the customs tables

What did not change

• Private enterprises remain the largest trade actors by value in the tables
• Sea transport remains the dominant channel by value
• Trade remains concentrated in a limited number of major product groups
• The trade structure reflected in the tables shows a high share of import-oriented and logistics-linked activity

9. Practical Takeaways

For businesses:

• The tables show higher growth rates in logistics-related and bonded-logistics categories
• Import categories include several segments with strong year-on-year growth in 2025
• Where operations involve bonded logistics, classification, documentation, and compliance processes remain important, and binding decisions should be made with licensed local professionals

For observers and planners:

• The customs tables show changes in trade composition rather than a uniform decline in trade values
• Trade patterns in the customs data show a high share of logistics-linked activity
• The customs tables do not show abrupt changes in the distribution of trade modes or transport shares within the year, although monthly volatility is visible

Data Notes

• Source: Haikou Customs annual statistical tables, published January 19, 2026
• Units: values in RMB (10,000) as presented in the tables; percentages rounded
• Data scope: import and export activity of Hainan-registered enterprises
• City-level data reflects enterprise registration location, not physical cargo flow
• Figures are subject to revision by customs authorities
• This analysis is descriptive and does not constitute legal, tax, accounting, or investment advice; for binding decisions, consult licensed PRC legal and professional advisors

Hainan Trade Deep Dive, January 2026

Full-year trade tables released as “customs closure” enters first full month

Trade Highlights

Full-year 2025 trade statistics released (official tables)

Haikou Customs released the official 2025 (January–December) Hainan foreign trade statistical tables. These tables provide the full annual import and export totals, along with detailed breakdowns, and represent the final official data set for the year. The materials were published through the Haikou Customs statistics portal.

📎 Source: Haikou Customs (via Guangzhou Customs portal) (2026-01-19)
http://guangzhou.customs.gov.cn/haikou_customs/605737/fdzdgknr82/605745/6952209/index.html

December 2025 duty-free tables released (official tables)

Haikou Customs also published the December 2025 offshore duty-free sales tables. These provide month-end figures as well as cumulative totals for the year, released in spreadsheet format.

📎 Source: Haikou Customs (via Guangzhou Customs portal) (2026-01-19)
http://guangzhou.customs.gov.cn/haikou_customs/605737/fdzdgknr82/605745/6952249/index.html

First-month duty-free activity under customs closure: ¥4.86 billion, 745,000 shopper visits

For the first month following the start of island-wide special customs operations (December 18, 2025 to January 17, 2026), official data reported the following results:

• ¥4.86 billion in duty-free sales

• 74.5万人次 = 745,000 shopper visits

• 349.4万件 = 3.494 million items sold

📎 Source: General Administration of Customs / customs.gov.cn (2026-01-18)
http://www.customs.gov.cn/customs/2026-01/18/article_2026011822473135590.html
(Parallel Xinhua release: http://www.news.cn/fortune/20260118/71194695e5454fbd9ebb4bd7dbd56ec4/c.html)

New Year holiday (Jan 1–3) duty-free: ¥712 million, 83,500 shopper visits

During the January 1–3 New Year holiday period, customs authorities reported:

• 7.12亿元 = ¥712 million in sales

• 8.35万人次 = 83,500 shopper visits

• 44.2万件 = 442,000 items sold

📎 Source: General Administration of Customs / customs.gov.cn (2026-01-06)
http://www.customs.gov.cn/customs/2026-01/06/article_2026010609175928782.html

Zero-tariff activity during the first month: 53 transactions, ¥753 million cargo value, ¥109 million tax reductions

At an official provincial briefing on the progress of customs closure, published reporting citing customs data stated that during the first month:

• “零关税” transactions: 53

• Cargo value: 7.53亿元 = ¥753 million

• Tax reductions: 1.09亿元 = ¥109 million

📎 Source: Hainan Provincial Government portal (press briefing page) (2026-01-19)
http://www.hainan.gov.cn/hainan/szfxwfbh/202601/c48c098faef3458692c6c9a57b055dd3.shtml

Private enterprise trade performance highlighted: ¥197.54 billion total trade in 2025

Haikou Customs reported that in 2025, private enterprises in Hainan recorded:

• 1975.4亿元 = ¥197.54 billion in total trade

• Exports: 660.1亿元 = ¥66.01 billion

• Imports: 1315.3亿元 = ¥131.53 billion

The release also reported year-on-year growth rates for private enterprise trade.

📎 Source: Haikou Customs (January 2026, Haikou Customs website)
http://haikou.customs.gov.cn/haikou_customs/605732/605733/6997244/index.html

What It Means

What the January Data Shows

The January releases from Haikou Customs and related authorities provide the first operational data following the launch of island-wide customs operations on December 18, 2025.

The data released during the month covers three main areas:

• Duty-free retail activity

• Early zero-tariff transaction data

• Full-year 2025 trade statistics for Hainan

Together, these datasets serve as an initial reference point for how the new customs framework is functioning in practice.

Duty-Free Activity

According to official customs data:

• Offshore duty-free sales totaled ¥4.86 billion between December 18, 2025 and January 17, 2026

• Sales during the January 1–3 holiday period alone reached ¥712 million

• Total shopper visits during the period reached 745,000, with 3.49 million items sold

What the Data Indicates

From an analytical perspective, the January figures suggest stability rather than disruption.

Specifically:

Systems are operating at scale
The volume of transactions, including ¥4.86 billion in duty-free sales and hundreds of thousands of shoppers, indicates that customs, payment, clearance, and retail systems continued to function normally after the transition to island-wide customs supervision.
If significant bottlenecks or system failures had occurred, they would likely have appeared as sharp declines in activity or gaps in reporting. This did not happen.

Policy implementation did not reduce demand
Duty-free consumption during the post-launch period broadly matches recent historical patterns. This suggests that the shift to the new customs regime did not introduce meaningful friction for consumers or operators.

Zero-tariff mechanisms are active, but used selectively
The number and value of zero-tariff transactions show that the mechanism is being used in practice. However, usage remains limited relative to total trade volume. This pattern is typical during early implementation phases.

The data reflects continuity, not acceleration
There is no statistical evidence yet of a surge in activity or a structural shift. What the data shows is continuity: trade, retail activity, and customs processing continued without disruption during the transition period.

Zero-Tariff and Processing Trade Activity

Provincial and customs releases report that:

• 53 zero-tariff transactions were recorded after customs operations began

• The total value of goods involved reached ¥753 million

• Reported tax reductions totaled ¥109 million

These figures confirm that the zero-tariff mechanism is being used. However, the data does not specify how many enterprises are participating or how current usage compares with longer-term expectations. No official assessment has yet been published on scale, speed of uptake, or sector coverage.

Enterprise and Trade Structure Data

Full-year 2025 statistics released by Haikou Customs show that:

• Private enterprises recorded ¥197.54 billion in total trade

• Imports reached ¥131.53 billion, while exports totaled ¥66.01 billion

• Year-on-year growth was reported for private-sector trade

These figures reflect historical performance for 2025. They do not measure post-closure outcomes and are not directly attributed to specific policy changes.

Overall, the January releases provide operational data rather than formal policy evaluation.

Bite Size Take Away

January’s data shows that Hainan’s customs system is operational and generating measurable activity. However, it is still too early to draw conclusions about longer-term impact or structural change.

Duty-free sales remain strong, zero-tariff transactions are taking place, and official reporting is now regular and transparent. At the same time, overall usage remains limited in scale, and no official evaluation of effectiveness has been released.

For businesses, the key takeaway is that the system is active, visible, and functioning, but still in the early stage of real-world operation.

Island-wide customs closure begins, early trade and consumption indicators surge

December marked a historic turning point for the Hainan Free Trade Port as island-wide special customs operations officially began on December 18. Initial data released by Haikou Customs show strong zero-tariff import activity, a surge in new foreign trade enterprises, and robust duty-free consumption in the first week of operations.

Trade Highlights

Island-wide special customs operations launched
Hainan Free Trade Port officially launched island-wide special customs operations on December 18, 2025, with the entire island designated as a special customs supervision zone operating under the “one-line open, second-line under control, free flow within the island” framework.
📎 Source: Xinhua / Gov.cn (2025-12-18)
https://english.news.cn/20251218/6e5a346ddd8c447d81492977f7436915/c.html

Zero-tariff imports strong on first day
On the first day of special customs operations, Haikou Customs reported zero-tariff imports of ¥3.6 billion at the first line. At the second line, nearly ¥14.7 million in value-added processed goods were sold domestically under tariff exemption, with ¥808,000 in tariffs waived.
📎 Source: Gov.cn citing Haikou Customs (2025-12-19)
https://english.www.gov.cn/news/202512/19/content_WS69454c9cc6d00ca5f9a08346.html

First week trade flows accelerate
From December 18–24, Haikou Customs tracked over ¥4 billion in zero-tariff imports and over ¥20 million in tariff-exempt value-added processed goods crossing the first and second lines under the new customs regime.
📎 Source: Haikou Customs via customs.gov.cn (2025-12-24)
https://www.customs.gov.cn/customs/xwfb34/302425/6908273/index.html

Foreign trade enterprise registrations surge
During the first week following customs closure, 1,972 new foreign trade enterprises were registered in Hainan, a 2.3-times year-on-year increase, according to Haikou Customs data released via national media.
📎 Source: China News / People’s Daily citing Haikou Customs (2025-12-26)
https://www.ecns.cn/m/news/cns-wire/2025-12-26/detail-iheyfqph6159428.shtml

Duty-free shopping jumps in launch week
Between December 18–24, offshore duty-free shopping in Hainan reached ¥1.1 billion, with 165,000 shopper visits and 775,000 items sold. Year-on-year growth reached 54.9% in sales value, 34.1% in shopper visits, and 11.8% in items sold.
📎 Source: Haikou Customs via customs.gov.cn (2025-12-25)
https://www.customs.gov.cn/customs/xwfb34/302425/6908273/index.html

First-day duty-free sales also strong
On December 18, the first day of island-wide customs closure, offshore duty-free shopping reached ¥161 million, reflecting immediate consumer response under the new regime.
📎 Source: China.com.cn citing Haikou Customs (2025-12-25)
https://www.china.com.cn/txt/2025-12/25/content_118246459.shtml

What It Means

The launch of island-wide special customs operations marks the start of full customs closure operations for the Hainan Free Trade Port, with the island now functioning as a single special customs supervision zone.

Strong zero-tariff import volumes in the first day and first week indicate rapid uptake of expanded tariff-exemption policies and improved customs efficiency at the first line.

The sharp rise in new foreign trade enterprise registrations suggests growing confidence among domestic and international businesses in Hainan’s new trade environment and regulatory clarity.

Meanwhile, duty-free consumption remains a key pillar supporting logistics, bonded operations, and visitor flows, reinforcing Hainan’s dual role as both a trade and consumption hub.

Together, these early indicators show that Hainan has moved decisively from policy rollout to real-world operation under the Free Trade Port framework.

Why It Matters

For companies and investors, the start of island-wide customs closure opens new pathways for tariff savings, faster clearance, and streamlined trade flows within China’s most open customs regime.
Businesses that adapt early to zero-tariff rules and second-line procedures are likely to gain first-mover advantages as Hainan’s Free Trade Port model scales in 2026.

November brought a series of trade and customs updates that show Hainan shifting from policy design to operational readiness. From rising ASEAN certificate use to finalized second-line tax rules, the island is clearly gearing up for the next major milestone: full customs closure.

Trade Highlights

Comprehensive trade statistics released

Haikou Customs published the January–October data pack, including total imports/exports, YoY changes, enterprise structure, partner blocs, and performance of Haikou, Yangpu, and Sanya districts.
📎 Source: Haikou Customs (2025-11-18)

Duty-free retail steady in October

Haikou Customs released monthly and year-to-date duty-free sales tables for October, showing continued resilience in tourism-linked consumption.
📎 Source: Haikou Customs (2025-11-18)

ASEAN certificates of origin climb

From January to October, Haikou Customs issued 2,434 China–ASEAN certificates (+26.8% YoY) covering ¥2.236 billion in goods. Across all types of certificates of origin, 12,805 were issued, totaling ¥7.543 billion in value.
📎 Source: Haikou Customs, mirrored by China News (2025-11-19)

Second-line tax rules finalized

Haikou Customs published detailed rules for tax administration covering frontline imports, second-line movements to the mainland, and in-island circulation—fully linked to enterprise digital ledgers.
📎 Source: Haikou Customs (2025-11-06)

Duty-free policy boost in early November

A new offshore duty-free policy took effect on November 1. First-day sales reached ¥78.55 million, with both footfall and item counts increasing.
📎 Source: Media citing Haikou Customs (2025-11-03)

Customs readiness confirmed

A national briefing noted that Haikou Customs has issued 12 public announcements and 13 internal operating specifications, with 10 second-line ports already accepted for use.
📎 Source: General Administration of Customs briefing (2025-11-19)

What It Means

The comprehensive statistics provide clear benchmarks by partner, product category, customs district, and enterprise type.

Finalized second-line tax rules bring certainty to how declarations will work once the FTP becomes a fully closed customs zone.

Duty-free retail continues to support passenger flow and bonded logistics capacity.

Surge in ASEAN certificates shows companies increasing use of tariff-preference pathways via Hainan.

Together, these developments signal that Hainan is moving from planning to full operational implementation.

Why It Matters

For companies using Hainan as a trade gateway, these updates mean faster clearance, more predictable policy execution, and new tariff-saving opportunities.

Those who adapt early to ledger-based declarations and second-line rules will gain a valuable first-mover advantage.

Foreign Investment Surges in Hainan FTP Ahead of Special Customs Launch

Foreign investment in the Hainan Free Trade Port (FTP) is gaining serious momentum in 2025, with paid-up foreign capital reaching CNY 18.368 billion by the end of September, a 42% year-on-year increase. During the same period, 1,513 foreign-invested enterprises set up operations in the island province, up 12.2% from the previous year.

This growth comes as Hainan prepares for the official launch of its island-wide special customs operations on December 18, a major milestone in the province’s transformation into a globally competitive free-trade zone.

Key projects that reflect Hainan’s rising international profile include:

Hainan Lausanne Tourism University, approved and backed by Switzerland’s EHL Group.

A Sonova Group subsidiary set up in the Boao Lecheng International Medical Tourism Pilot Zone.

The province’s first foreign-funded stem cell project, now operating in the Haikou National High-tech Industrial Development Zone.

Hainan’s improved policy environment, upgraded industrial infrastructure, and pro-business reforms have been instrumental in attracting overseas capital. These strengths were on display at the 2025 Hainan FTP Enterprise Globalization Summit in August, where 20 companies signed investment deals spanning international headquarters, cross-border trade, and digital economy sectors.

In the run-up to the customs launch, the FTP has ramped up international outreach, hosting multiple policy briefings and investment promotion events to position the island as a gateway to China and Southeast Asia. Officials say the goal is clear: to build a best-in-class business environment where global companies can thrive.

For businesses eyeing new opportunities in Asia, Hainan is making a strong case to be on the map.

Cross-border e-commerce takes off as Hainan gears up for full customs closure

October brought a wave of important trade and customs updates for Hainan. From booming e-commerce to new customs systems, the island is clearly preparing for its next big step, full customs closure under the Free Trade Port plan.

Trade Highlights

Cross-border e-commerce booming

Between January and September, Hainan’s cross-border e-commerce imports and exports reached 1.312 billion yuan, with exports accounting for about 1.251 billion yuan. Seven international cargo routes are now operating from Haikou Meilan Airport, providing direct logistics support.
📎 Source: Haikou Customs via Hinews.cn (2025-10-20)

Golden Week duty-free rebound

During the October 1–8 Golden Week holiday, offshore duty-free sales hit 944 million yuan, with 122,900 shoppers and an average spend of 7,685 yuan per person, a clear sign that tourism consumption remains strong.
📎 Source: Haikou Customs Official Website (2025-10-11)

“One Company, One Ledger” system launched

Haikou Customs released detailed new rules for smarter management of zero-tariff goods. Each company benefiting from tariff-free policies will now maintain a digital ledger tracking imports from arrival to transfer or re-export. This allows faster clearance and stronger oversight.
📎 Source: Hinews.cn (2025-10-14)
📎 Source: People’s Daily Hainan Edition (2025-10-14)

New “Second-Line Release List” announced

To prepare for customs closure, Hainan will introduce a “release list” (核放清单) system for goods moving from the Free Trade Port to mainland China. The system links to each company’s digital ledger, simplifying declarations and improving traceability.
📎 Source: People’s Daily Hainan Edition (2025-10-20)

Preparing for customs closure

A broader policy review highlighted how the island’s trade model will shift to “frontline release, second-line control”, maintaining openness while safeguarding regulatory checks.
📎 Source: Hinews.cn (2025-10-17)

What It Means

All these moves show that Hainan is not just opening its doors, it’s upgrading how those doors are managed.

The new digital ledger and second-line release list give businesses a clear framework for using zero-tariff policies without red tape.

Cross-border e-commerce remains one of Hainan’s strongest growth engines, with logistics and infrastructure now catching up to demand.

Tourism and duty-free shopping continue to attract spending, feeding into local supply chains and logistics operations.

Together, these steps are helping Hainan shift from a policy concept to a real, working free-trade hub.

Why It Matters

For companies trading through Hainan, these reforms mean faster customs clearance, better policy certainty, and potential tax savings.

Early adopters who align their systems with the new digital ledger and release-list process will have a head start when the Free Trade Port fully closes and the island begins operating as a single customs zone.

According to preliminary calculations based on constant prices, Hainan’s GDP grew by 4.2% year-on-year in the first half of 2025.

• The primary industry (agriculture, forestry, animal husbandry, and fisheries) grew by 4.7%.

• The secondary industry (manufacturing and construction) rose by 5.1%.

• The tertiary industry (services) increased by 3.7%.

Agriculture

The total output value of agriculture, forestry, animal husbandry, and fisheries reached 129.185 billion yuan, representing year-on-year growth of 5.1%.

Industry

Industrial production continued to accelerate, with particularly strong growth in equipment manufacturing, where value added increased by 72.4%, 61 percentage points higher than the growth of industries above designated size (规模以上工业).

The effects of Free Trade Port policies supporting processing trade and value-added activities became increasingly evident, enabling enterprises to fully release production capacity.

• The petroleum, coal, and other fuel processing industry grew by 35.2%,

• The oil and natural gas extraction industry by 52.8%, and

• The agricultural and sideline food processing industry by 53.5%.

Services

The added value of the service sector increased by 3.7% year-on-year.
Total service imports and exports reached 34.710 billion yuan, up 24.7%, showing rapid growth.

Investment and Consumption

Driven by the national policy on large-scale equipment upgrades and renewal, investment in equipment purchases grew by 5.9% in the first half of the year.

Infrastructure investment (excluding electricity, gas, and water production and supply) increased 17.9% year-on-year, 25.5 percentage points faster than overall fixed asset investment.

On the consumption side, total retail sales of consumer goods reached 132.989 billion yuan, up 11.2%, 7 percentage points faster than in the first quarter.

Green Development

Environmental indicators remained strong.

• The ambient air quality compliance rate stood at 96.8%,

• The compliance rate of drinking water sources in all prefecture-level cities reached 100%.

Clean energy output continued to grow, with wind power generation up 3.3 times and hydropower up 12.7% year-on-year.

Outlook

Overall, Hainan’s economy continued its steady recovery and positive trajectory in the first half of 2025, with structural upgrading and high-quality development gathering momentum.

In the next phase, the province will fully implement the new development philosophy, focusing on achieving breakthroughs in effective investment, stable foreign trade, and quality and efficiency in the service sector—maintaining confidence and taking decisive measures to ensure a strong performance in the second half of the year.

Hainan’s research and development (R&D) spending rose to ¥10.96 billion in 2024, a year-on-year increase of ¥1.98 billion. According to the latest figures from the National Bureau of Statistics, this 22.05% growth rate was the highest in the country, 13.2 percentage points above the national average of 8.9%.

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