Early gains follow new customs operations in Hainan

A sharp rise in visa-free arrivals, foreign trade registrations and duty-free spending has marked the first month of island-wide special customs operations at the Hainan Free Trade Port, underlining the growing international reach of its openness.

Key policies under the special customs operations launched on Dec 18 are now showing their impact, with officials pointing to early gains in trade, tourism and consumption as signs of momentum building.

From Dec 18 to Saturday, Hainan added 5,132 newly registered foreign trade enterprises, roughly equivalent to an average quarter's total in 2024, according to the provincial department of commerce. Customs data show that 53 zero-tariff import transactions were completed during the period, valued at 753 million yuan ($106 million), a year-on-year increase of 39 percent. Tariff exemptions totaled 109 million yuan, up nearly 195 percent.

A further 214 transactions were carried out under a policy granting import tariff exemptions to goods that gain at least 30 percent added value after local processing. These deals were valued at 85.87 million yuan, reinforcing indications that core measures are beginning to work.

Guan Jirong, deputy secretary-general of the Communist Party of China Hainan Provincial Committee and executive deputy director of the Office of the Hainan Free Trade Port Working Committee, said the Hainan Free Trade Port has achieved a stable start and yielded initial results, adding that policies were being implemented smoothly and risks remained under control.

Trade activity has been particularly strong at Yangpu Port, the island's largest ocean freight gateway. It handled 261 vessel calls and 325,700 twenty-foot equivalent units of cargo during the first month, accounting for more than 70 percent of Hainan's imports. Goods ranging from coconuts to construction materials entered through the port.

Customs authorities have also simplified procedures, reducing declaration items for eligible bonded and zero-tariff goods from 105 to 33, speeding up clearance.

Beyond traditional trade, Hainan has opened 38 categories of goods for bonded repair, making it China's most open region for the business. Shenzhen-based SonoScape Medical Corp has begun repairing medical device components in Haikou, reporting cost savings of 20 percent to 30 percent.

"The policy allows overseas equipment that is difficult to repair abroad to be serviced domestically," said Li Xiaoxi, general manager of the company's Hainan subsidiary.

Tourism has expanded sharply under visa-free entry policies. Immigration authorities recorded 317,000 cross-border movements in the first month, including 87,000 visa-free foreign arrivals — a 64 percent increase from a year earlier. These travelers accounted for 93 percent of all international visitors, most arriving from Russia, Malaysia, Indonesia, the Republic of Korea, Kazakhstan and Singapore, primarily for tourism.

"The visa-free policy makes traveling to and from Hainan exceptionally convenient," said Heng Aik Lim, a visitor from Malaysia.

Consumer spending has also risen. From Dec 18 to Saturday, duty-free sales reached 4.86 billion yuan, up 46.8 percent year-on-year. The number of shoppers increased 30 percent to 745,000, with average daily spending of about 160 million yuan. In the resort city of Sanya, daily duty-free sales exceeded 100 million yuan.

Immigration officials said further measures would be introduced to ensure smooth cross-border movement during major upcoming events, including the Spring Festival travel period, the Boao Forum for Asia Annual Conference, the China International Consumer Products Expo and the 6th Asian Beach Games.

chenbowen@chinadaily.com.cn