Hainan’s special customs operations include the key change around the way the zero tariff principle will be applied. If goods are not on the list of taxable imported goods then they will be tariff free. The Hainan FTP has the shortest negative list for foreign investment of any other entry port in China, so there are zero tariffs on most imports.
China is launching the Hainan Free Trade Port (FTP). It is, in essence, a special economic zone that covers the entire island and not just the port area. Its location is significant from a sea lane perspective, but it also defines the southernmost reach of China.
Hainan, located opposite Vietnam between Hue and Hanoi, is the southernmost part of China and a revitalised port in this area changes the logistics calculation for the region. It becomes an alternative entry port to the Greater Bay Area. A liberalised and revitalised port provides a new entry port for China shipping and for exporters seeking to access China. This will stimulate new logistics chains and depots in the southern region and provinces of China, and also provide improved access to northern Vietnam.
