Hainan pushes opening-up for foreign enterprises

Following the launch of island-wide special customs operations, Hainan province is entering a new phase of opening-up, stepping up efforts to welcome foreign investors and global talent as it accelerates development of its free trade port.

Governor Liu Xiaoming outlined the push in a government work report delivered to the Hainan Provincial People's Congress on Tuesday, saying the province now offers the country's highest level of market access openness for foreign investors — a "substantial leap" in opening-up.

The momentum builds on steady gains over the past five years. Hainan's actual use of foreign capital grew at an average annual rate of 16.7 percent, attracting investment from 180 countries and regions. Reforms to the foreign work permit system drove a 90 percent increase in foreign workers between 2020 and 2025.

The special customs operations, launched in the Hainan Free Trade Port on Dec 18, 2025, are already delivering early results. Preliminary data from the first month showed a 13 percent rise in newly established foreign-funded enterprises, a 38.9 percent increase in import value and a 64 percent jump in visa-free tourist arrivals. More than 10,000 new entities benefited from zero-tariff policies.

For existing foreign enterprises, the evolving policy environment is creating tangible opportunities. A case in point is Jia Green Chocolate Works (Hainan) Co, the sole Asian production base for Canadian chocolatier Green Chocolate Works. As a pilot company for Hainan's value-added processing policies, it obtained China Customs' Authorized Economic Operator advanced certification in 2023.

"We adhere to a pure concept, sourcing ingredients globally to offer products that balance health and taste," said Meng Weiwei, the company's general manager.

Leveraging Hainan's policies, the company is expanding rapidly. A major 2026 deal with Sinopec's Hainan unit will see its chocolates sold nationwide through the Easy Joy convenience store network as value-added processed goods.

To meet rising demand, Jia Green plans to build new factories in Sanya and aims to set up three to six facilities in Hainan in the coming years, targeting 400 million yuan ($57 million) in annual revenue. Its long-term vision is to develop chocolates with Chinese characteristics for export and, by around 2028, build a full industrial chain covering cultivation, processing and tourism. The company aims to help establish Hainan as a renowned chocolate industry base by 2030.

Aligning with such corporate ambitions, Hainan's 2026 targets focus on steadily expanding institutional openness. The province seeks 10 percent growth in service trade, goods trade and actual outward foreign direct investment. It will implement more convenient entry-exit policies, expand its visa-free country list and aim for a significant rise in international tourist arrivals, according to the report.

Improving the international business environment is seen as key to attracting talent. Plans include enhancing the Hainan Free Trade Port International Services portal, exploring tailored immigration policies for high-skilled foreign professionals and launching a three-year action plan to double the number of foreign workers. The immediate goal is a 20 percent increase in foreign professionals this year.

"Special customs operations are not just a change in physical supervision; they represent an innovative breakthrough in institutional integration," said Lin Chunhong, an inspector with the China Council for the Promotion of International Trade Hainan Provincial Committee. "From this new starting point, we will continue building high-level platforms for economic cooperation to attract more foreign enterprises to invest and take root in Hainan."