CGTN: Hainan Free Trade Port Launches Island-Wide Special Customs Operations

KUALA LUMPUR, Dec 19 (Bernama) -- China Global Television Network Corporation (CGTN) has reported that island-wide special customs operations have been launched at south China’s Hainan Free Trade Port (FTP), allowing freer entry of overseas goods alongside expanded zero-tariff coverage and more business-friendly measures.

According to CGTN, Chinese President Xi Jinping, when hearing a work report on the FTP in early November, hailed the special customs operations as a landmark move to expand high-standard opening up and promote an open world economy.

He also called for greater efforts to facilitate cross-border flows of factors of production and to create a first-rate business environment, CGTN said in a statement.

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The idea of establishing the Hainan FTP was first proposed in 2018. Since then, multiple preferential policies, including duty-free shopping and low corporate income tax, have been introduced to gradually shape a more business-friendly free trade port.

CGTN noted that following the launch, the share of zero-tariff products in the Hainan FTP will rise from 21 per cent to 74 per cent, with the number of tariff-free items expanding from about 1,900 to 6,637, covering nearly all production equipment and raw materials.

Another key policy introduced in recent years is the 30 per cent value-added threshold, which allows companies to source raw materials globally, add value locally in Hainan and sell finished products into the mainland market duty-free.

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CGTN cited Hainan Weili Medical Technology, a major global catheter supplier, as an example of a company benefiting from the policy. The firm has seen tariff reductions since becoming Hainan’s first pilot for medical device processing and value-added operations in early 2023, having previously sourced most of its raw materials from Southeast Asia.

Head of the Chinese Academy of Macroeconomic Research, Huang Hanquan, was quoted by CGTN as saying that the FTP’s policies help create a trade route from Southeast Asian raw materials through Hainan processing to mainland distribution, positioning the island as a hub linking domestic and international markets.

Huang added that the launch of island-wide special customs operations demonstrates China’s commitment to high-standard opening up, boosting both the domestic economy and global growth.

-- BERNAMA