Opening Remarks: Approved by the Central Committee of the Communist Party of China, the island-wide customs closure operation of the Hainan Free Trade Port will officially commence on December 18, 2025. The large-scale interview program “Free Trade Port ‘Experts’ Talk” launches today, featuring dialogues with authoritative experts to interpret the island-wide customs closure. The first episode features an exclusive interview with Long Guoqiang, Deputy Director of the Development Research Center of the State Council.
丨Hainan Free Trade Port Enters a New Phase丨
Reporter: Director Long, you have visited Hainan multiple times before. What particularly strong impressions do you have of the Hainan Free Trade Port?
Long Guoqiang: According to the “Overall Plan for the Construction of the Hainan Free Trade Port,” the Development Research Center of the State Council is responsible for evaluating the entire process of the port’s development. Over the past five-plus years, I have been fortunate to participate in this work and visit Hainan multiple times, leaving me with deep impressions. During this period, the construction of the Hainan Free Trade Port has made significant progress and has now entered a new phase of taking shape and gaining momentum, with the island-wide customs closure operation imminent.
Reporter: The term “customs closure” has become a hot topic recently. Could you elaborate on the policy and institutional framework design for the customs closure operation of the Hainan Free Trade Port?
Long Guoqiang: The Overall Plan stipulates that the policy and institutional system of the Free Trade Port should be established step by step and phase by phase. In line with this requirement, central government departments, considering Hainan’s actual development, have formulated the current customs closure policies. There are four key considerations:
First, implementing a more open zero-tariff policy for goods trade. Imports from overseas are referred to as the “first line,” and the proportion of zero-tariff goods imported through the “first line” will increase from the current 21% to 74%. Eligible entities on the island can circulate these imported goods among themselves without paying import duties. If the value-added ratio of locally processed goods reaches 30%, these goods can enter the mainland market tariff-free.
Second, implementing more relaxed trade management measures. For imports through the “first line,” open arrangements will be made for some goods currently prohibited or restricted nationwide.
Third, implementing more convenient customs clearance measures. There are eight open ports on the island where goods meeting import conditions can enter Hainan directly upon customs clearance. Additionally, ten “second-line ports,” such as Haikou Xinhaigang and Haikou Nangang, have been established. Goods entering the mainland from Hainan pass through these “second-line ports,” where customs and local regulatory authorities have implemented many streamlined clearance measures.
Fourth, implementing a more efficient and precise supervision model to ensure the smooth implementation of all opening-up policies.
丨After Customs Closure, Residents’ Incomes Will Continue to Rise丨
Reporter: There is widespread interest in the development of the Free Trade Port. What preferential policies can residents living and working in Hainan enjoy, and how will their lives change before and after customs closure?
Long Guoqiang: The greatest benefit for local workers and residents from the Hainan Free Trade Port is that, following the implementation of these major opening-up measures, the business environment will improve, attracting more domestic and international investors. This will lead to increased economic activity in Hainan. Greater economic prosperity will create more high-income job opportunities, raising residents’ incomes and increasing the value of their assets. With more choices, their lives will improve.
Reporter: This will also attract more talent from outside Hainan to come here.
Long Guoqiang: Exactly. In recent years, since the introduction of the Free Trade Port policies, changes have occurred on two levels. First, the composition of Hainan’s cadres has become more diverse, with both local and external cadres pooling their experiences to form a cohesive force for building the Free Trade Port government. Second, at the market level, many institutions have begun to recognize the opportunities brought by the Hainan Free Trade Port.
Reporter: Hainan is also actively positioning itself as a key hub for new quality productive forces. With the Free Trade Port construction, Hainan has clear advantages in developing these forces.
Long Guoqiang: The Hainan Provincial Party Committee and government are absolutely right to focus on new quality productive forces. The Hainan Free Trade Port is not about chasing the past but about looking to the future. Those who seize the new opportunities brought by technological progress can leapfrog ahead and stand out. Therefore, Hainan’s focus on new quality productive forces, targeting emerging industries, is spot-on.
Developing new quality productive forces, especially in digital and green economies, holds vast potential, which the Hainan Free Trade Port must explore. For example, by fostering a favorable institutional environment for the digital economy, companies can establish their R&D or management offices in Hainan.
Reporter: This creates a powerful synergy, with limitless possibilities for the future.
Long Guoqiang: Correct.
丨Building the Hainan Free Trade Port Requires More Open Measures丨
Reporter: Creating a leading gateway for opening up in the new era is a major mission assigned to the Hainan Free Trade Port by the Central Committee. What more open measures should we adopt in the future?
Long Guoqiang: There is still much work to be done in building the Hainan Free Trade Port. First, we must accelerate the establishment of a trade management system that ensures free, secure, and convenient movement of goods. Second, we must focus on creating a transparent and predictable investment environment. Third, we must gradually establish financial policies and systems compatible with open development. Fourth, we must implement more convenient entry-exit management policies, further relaxing restrictions on the free movement of people. Fifth, we must establish a more open and free shipping system. Sixth, we must build an efficient, convenient, and secure cross-border data flow mechanism.
丨The Hainan Free Trade Port Is Not “Inside the Country but Outside Customs”丨
Reporter: There are differing interpretations of the Hainan Free Trade Port’s direction post-customs closure, such as the belief that it will become “inside the country but outside customs.” How should we understand the uniqueness of the Hainan Free Trade Port?
Long Guoqiang: The Hainan Free Trade Port is not “inside the country but outside customs.” Both the Overall Plan and the Hainan Free Trade Port Law clearly state that the Hainan Free Trade Port is a special customs-supervised zone, not an unregulated area. After customs closure, the Hainan Free Trade Port remains part of the customs territory of the People’s Republic of China. Goods, items, and transportation tools entering or exiting through the “first line,” or goods entering the mainland via the “second line,” are still subject to relevant laws such as the Customs Law and the Tariff Law. Additionally, they must comply with the supervision and management of the General Administration of Customs, which has guided Haikou Customs in establishing a smart customs supervision platform for the Hainan Free Trade Port. Precise and efficient supervision of customs-regulated goods is implemented at the “first line,” “second line,” and within the island to facilitate cross-border trade and support the healthy development of Hainan’s distinctive industries.
Hainan should take this customs closure as an opportunity to actively promote the effective implementation of policies, continuously improve the Free Trade Port’s policy and institutional system, steadily advance institutional opening-up, and strive to become a leading gateway for China’s opening-up in the new era.
