Hainan Free Trade Port to Launch Full Island Closure

On July 23, 2025, Wang Changlin, Deputy Director of the National Development and Reform Commission, announced at a State Council Information Office press conference that the Hainan Free Trade Port will officially commence its full island closure on December 18, 2025, following approval from the Central Committee of the Communist Party of China. The date, coinciding with the historic Third Plenary Session of the 11th Central Committee in 1978, symbolizes China’s unwavering commitment to high-level opening-up.

The closure, a landmark in Hainan’s Free Trade Port development, adopts a policy framework characterized by “first-line liberalization, second-line control, and intra-island freedom.” This includes a significantly expanded “zero-tariff” policy, increasing the proportion of tariff-exempt goods from 21 per cent to 74 per cent, relaxed trade management, streamlined customs clearance at eight first-line and ten second-line ports, and efficient regulatory measures to ensure smooth policy implementation.

With preparations intensifying over the coming months, the policy aims to enhance trade and investment freedom while maintaining precise oversight, reinforcing Hainan’s role as a global hub for open economic policies.