Hainan's new customs operations enhance trade liberalization, allowing free movement of goods and capital while maintaining mainland controls.
Hainan has officially launched closed customs operations for its free trade port, as reported by Caixin. This initiative marks a significant milestone in China's efforts to deepen financial and trade liberalization.
Under the new system, the entire island will function as a customs-supervised zone. Goods, capital, and people can move freely between Hainan and international markets, while movements between Hainan and the rest of China will still be subject to standard controls and taxes.
This arrangement effectively transforms Hainan into a domestic offshore zone. Companies operating within this framework will benefit from policies such as zero tariffs, while regulatory boundaries with the mainland will be preserved.
