Hainan’s Expanding Trade with RCEP Nations
Hainan’s cooperation with RCEP member countries continues to deepen, with trade volume steadily increasing, delivering an impressive performance. On February 21, Haikou Customs announced that, according to the latest annual statistics, in 2024, Hainan’s total import and export trade with RCEP member countries reached 102.98 billion yuan, marking the first time that its foreign trade has exceeded 100 billion yuan.
In terms of trade scale, the value of imports and exports has shown a steady upward trend. The total trade value between Hainan enterprises and RCEP member countries increased from 57.36 billion yuan in 2021 to 102.98 billion yuan in 2024, an overall growth of 79.6%.
RCEP member countries have become Hainan’s most significant trading partners, said Zhao Junlun, Deputy Director of Haikou Customs.
The Size and Impact of the RCEP Market
The Regional Comprehensive Economic Partnership (RCEP) is the world’s largest trade bloc, encompassing 15 member countries, including China, Japan, South Korea, Australia, New Zealand, and the 10 ASEAN nations. Collectively, RCEP covers about 30% of global GDP and nearly 2.3 billion consumers, making it a key driver of regional and international trade.
Why International Companies Should Consider Hainan FTP
This growing trade presents a unique opportunity for international companies looking to enter or expand within the RCEP market. Businesses setting up in the Hainan Free Trade Port (Hainan FTP) can benefit from both RCEP’s preferential trade policies and Hainan’s own tariff advantages. With Hainan’s goal of eliminating most import duties by 2025, international firms based in the province can export to RCEP countries at reduced costs while also gaining streamlined customs clearance and tax incentives.
Hainan’s Support for Businesses Expanding into RCEP
To help Hainan enterprises expand into international markets, the province regularly conducts awareness campaigns on rules of origin policies, providing personalized guidance on free trade agreement tariff reduction lists, rules of origin, and certificate application processes. These efforts help enterprises fully benefit from tariff reductions, enabling more “Made in Hainan” products to enter RCEP markets. In 2024, Haikou Customs issued 926 RCEP certificates of origin, covering goods worth 8.06 billion yuan.
The head of Hainan Zhongxin Chemical Co., Ltd. stated that the company primarily exports to ASEAN countries such as Vietnam and Indonesia, with products including borates, gelatin, and magnesium aluminum silicate. Benefiting from preferential rules of origin, the company has enjoyed tariff reductions on goods worth over 23 million yuan, saving more than one million yuan in import duties annually.
Key Industries Driving Hainan’s RCEP Trade
Hainan is actively leveraging the combined benefits of RCEP and free trade port policies, continuously strengthening connectivity with other member countries, enhancing trade and investment efficiency, and injecting strong new momentum into high-quality industrial development. Currently, Hainan and RCEP member countries have established close industrial and supply chain cooperation in sectors such as petrochemical new materials, energy and mineral products, and agricultural product processing.
According to Lu Jinsong, Deputy Director of the Statistical Analysis Department at Haikou Customs, in 2024, 80% of Hainan’s wood chip imports, 70% of its xylene imports, over 50% of its metal ore imports, and more than 40% of its coal imports came from RCEP member countries.
Meanwhile, over 70% of locally produced refined oil, 40% of polyester chips, furniture and accessories, and nearly 30% of finished paper were exported to RCEP markets.
One-Stop RCEP Business Services in Hainan
Hainan has also made full use of the RCEP “one-stop” service platform, offering enterprises comprehensive services such as RCEP agreement interpretation, tariff inquiries, certificate of origin issuance, import and export license processing, commercial certification, and guidance on applying for preferential policies. These initiatives are helping Hainan enterprises accelerate their expansion into global markets.
With the continued rise of RCEP-driven trade, international companies should take note of Hainan’s strategic position as a gateway into this expansive market. By setting up operations in Hainan FTP, foreign businesses can maximize trade efficiencies, reduce costs, and establish a strong foothold in the world’s largest free trade zone.
Related article: Hainan: Foreign companies can now engage in trade in services without setting up a Chinese business entity
