In December 2025, the Chinese authorities took a further step in the implementation of the Hainan Free Trade Port (FTP) project, designed as a model free trade port for the island.
One of the most significant developments concerns the launch of the Free Trade Port customs system across the whole island of Hainan, allowing trade flows to be managed under a regime distinct from mainland China and strengthening the island’s role as a platform for import, export and international distribution operations.
At the same time, the authorities expanded the categories of goods eligible for the duty-free import regime, extending the list of covered products and further supporting the use of the island for processing, assembly and logistics activities.
The new measures also clarified the conditions under which products processed in Hainan may subsequently be introduced into the mainland Chinese market under preferential treatment, thereby encouraging the localisation of manufacturing and processing activities on the island.
Overall, these developments confirm the Chinese authorities’ intention to accelerate the implementation of the Hainan Free Trade Port project and to strengthen its role as a commercial and logistics hub in the Asia-Pacific region.