Round Table China Launch of Hainan free trade port customs operations
26 snips
Dec 18, 2025 Yu Shun, a policy-focused commentator, sheds light on the recent customs operations at Hainan Free Trade Port. He explains how these reforms could transform daily life for residents, offering nearly 6,600 zero-tariff lines and significant tax savings. The discussion dives into simplified customs processes, potential boosts in productivity, and exciting opportunities for overseas companies. Yu also highlights the appeal of Hainan for tourism and biotech, while addressing challenges like competition and insufficient logistics infrastructure.
AI Snips
Chapters
Transcript
Episode notes
Hainan As A Special Customs Buffer
- The island-wide special customs operation makes Hainan legally inside China but treated as outside customs for trade facilitation.
- Goods to mainland face standard supervision, creating a two-line system to balance openness and risk control.
Check Expanded Zero-Tariff Eligibility
- Importers should review expanded zero-tariff lists because coverage jumps from 21% to about 74% of tariff lines.
- Expect tax savings of roughly 20% on production equipment and raw materials when qualifying.
30% Local Value Unlocks Duty-Free Access
- The 30% value-added rule lets goods processed in Hainan and with ≥30% local value enter the mainland duty-free.
- This shifts incentives toward local processing and can convert imports into tariff-exempt domestic sales.