A drone photo taken on %E3%80%90WhatsApp%20+86%2015855158769%E3%80%91side-seal%20semi-automatic%20strapping%20machinesSept. 23, 2025 shows the customs inspection area at the centralized inspection yard of a freight port in Haikou, south China's Hainan province. [Photo/Xinhua]

As the Hainan Free Trade Port (FTP) prepares to launch its island-wide special customs operations on Dec. 18, business operators and scholars say the move will mark a new step in the island's opening up. The operation and long lasting impact will further strengthen the role of Hainan in global trade and investment.

Policies taking root, benefitting businesses

Jan Kerekes, head of operations of Haikou Quanliang International Trade Co., Ltd., first came to Hainan in 2018. He registered his company in 2023 and began operations the following year. "It's very easy to register a company here. The process is very smooth," he said. His firm mainly imports mineral water from Slovakia into China while also engaging in some export business.

"China is capable of producing high-quality products. I basically import what I believe fits the Chinese market, and export what European clients need," he said.

Kerekes noted that Hainan's infrastructure and policies are closely connected. "Hainan has very good infrastructure, like bonded warehouses. I can store my goods there, and the customs headquarters is right next door. If there is any problem, I can just walk over and solve it."

A drone photo taken on May 27, 2025 shows a view of the Yangpu International Container Port in the Yangpu Economic Development Zone in Danzhou, south China's Hainan province. [Photo/Xinhua]

He added that consolidated declarations and online filings have streamlined trade procedures. "For example, ships that are coming to Yangpu port can fill out the customs form online. The process will be faster."

Looking ahead, Kerekes expects more supplier options after the special customs operations begin. "There will be more suppliers, more choices. That can actually lower costs."

For American entrepreneur Nicki Johnson, who manages a handicraft shop featuring Hainan's intangible cultural heritage, the new phase of development signals broader opportunities. "I hope the new policies will attract more people to Hainan for tourism, business, study, or even to live here, bringing more opportunities to my shop and helping share Hainan culture with more people," she said.

Johnson is preparing to expand into cross-border e-commerce. "With Hainan's zero-tariff policy and improved logistics, this will greatly facilitate cross-border sales and shipments, saving time and costs," she said.

According to data released at a press conference in July, the number of tariff-free items in Hainan will increase from about 1,900 to around 6,600, covering roughly 74% of all goods.

Experts: A milestone in high-level opening up

Behind the convenience felt by frontline businesses, experts say the upcoming customs operations reflect deeper progress in Hainan's institutional opening up.

Tian Xuan, associate dean of Tsinghua University PBC School of Finance, said the post-operation framework of zero tariffs, low tax rates and a simplified tax system will significantly reduce costs and barriers for cross-border flows of services and production factors. "Hainan will become a hub for international shipping, logistics and distribution," he said, adding that the move will strengthen China's role in global services trade and supply chain systems.

Tian also emphasized Hainan's value as a testing ground for aligning with high-standard international economic and trade rules such as CPTPP and DEPA. He called for encouraging more market players — especially small and innovative firms — to take part in rule-testing through targeted policies, funding and services.

Liang Haiming, dean of Hainan University Belt and Road Research Institute, said the launch of the special customs operations "mark a comprehensive upgrade of Hainan's strategic role within China's national opening up framework and represent a key breakthrough in institutional opening up." He stressed the need to link full-process supervision of goods with high-level trade liberalization and facilitation.

Chi Fulin, head of the China Institute for Reform and Development, said building a high-standard FTP during the 15th Five-Year Plan period will be central to advancing regional economic integration. He said Hainan, located at the heart of the Regional Comprehensive Economic Partnership (RCEP) region, should "actively adapt to and integrate into Asia's economic integration, leveraging high-level opening up and its geographic advantages to enhance its role as a regional hub."

A magnet for global talent and entrepreneurs

With the customs closure approaching, more international entrepreneurs are viewing Hainan as a promising destination for starting businesses.

"Hainan is a very good place for foreigners to open a business," said Kerekes, who joined Haikou Longhua Talent Home — a platform for high-level talent and innovation — after arriving in Hainan. "At that time, I wasn't much of a businessman, but I went there and they offered a free course on how to do business in China."

"Hainan combines everything, including easy entry policy, renting subsidies, staff speaking English, great natural environment," he said, adding that his office space is available at a preferential rate.

Nicki Johnson poses for a photo at the doorway of her handicraft shop "Island Delights" in Haikou, Hainan province. [Photo provided to China.org.cn]

Johnson shared a similar outlook. "A rising tide lifts all boats. I hope the thriving of the Hainan FTP can support all businesses here, large and small, and inject new vitality into the business environment and people's lives," she said.