Hainan FTP and the Boao Forum for Asia 2025: A synergy of openness and opportunity

Editor's note: Tang Jie is a research fellow at the Chinese Academy of International Trade and Economic Cooperation of China's Ministry of Commerce. The article reflects the author's opinion, and not necessarily the views of CGTN.

The year 2025 is a pivotal moment in China's economic development, as the Hainan Free Trade Port (FTP) transforms from an ambitious blueprint into a fully operational reality. Coincidentally, the 2025 Annual Conference of the Boao Forum for Asia (BFA), held in the coastal town of Boao in Hainan, also serves as a global platform to showcase the province's evolution into a hub of openness and innovation. The convergence of these events highlights Hainan's dual role as a testing ground for China's high-quality development and a bridge for international cooperation. As the FTP accelerates its integration into global trade networks, the BFA's theme of "open cooperation" aligns perfectly with Hainan's goal of expanding economic frontiers.

Hainan Island focuses on developing tourism, modern services and high-tech industries

Since its establishment 24 years ago, the BFA has clearly defined its development direction: being rooted in Asia, embracing the world, promoting cooperation, and leading trends. The 2025 BFA is more than just a diplomatic event, it is a catalyst for Hainan to shine on the global stage. By combining the institutional innovations of the FTP with the collaborative spirit of the forum, Hainan is redefining what a free trade zone can achieve in the 21st century.

The Hainan FTP has emerged as one of the world's most ambitious free trade initiatives. Aiming to operate as a hub like Singapore or Dubai, the FTP covers the entire island, leveraging its strategic location in the South China Sea, to connect Asia Pacific markets to global trade routes. The construction of the Hainan Free Trade Port is essential for promoting high-level opening up and establishing a new open economy system. It is crucial for deepening market oriented reforms and creating a legal, international, and convenient business environment. It is a strategic choice for implementing the new development concept, promoting high-quality development, and building a modern economic system. It is also a practical step in supporting economic globalization and building a community with a shared future for mankind.

As China's largest special economic zone, the Hainan FTP is dedicated to building a comprehensive reform and opening up pilot zone, a national ecological civilization pilot zone, an international tourism and consumption center, and a national major strategic service and support zone. It will fully utilize Hainan's advantages, such as rich natural resources, a unique geographical location, and the backing of a vast domestic market and hinterland economy. Seizing the opportunities presented by the new round of global scientific and technological revolution and industrial transformation, Hainan focuses on developing tourism, modern services, and high-tech industries, and accelerates the cultivation of new cooperative and competitive advantages with local characteristics.

Hainan FTP has already yielded very positive results in many sectors

The Hainan FTP is at the forefront of institutional innovation. By adhering to international high-standard economic and trade rules, it explores the construction of an open and innovative high ground, offering economic potential in areas such as regional economic integration and global resource allocation optimization. A series of tax reduction and exemption policies implemented in the Hainan FTP have not only reduced enterprises' operating costs but also attracted a large number of foreign-funded enterprises and high-end talents, injecting new vitality into Hainan's economy. Through the "zero-tariff" policy, simplified customs-clearance procedures, and reduced import and export costs, the level of trade liberalization has been significantly enhanced. Hainan has also relaxed restrictions on foreign investment access, encouraging foreign funded enterprises to invest and operate in multiple fields and promoting full market opening. These measures have already yielded positive results. In 2024, Hainan's GDP grew by 9.2 percent, exceeding the national average, while foreign direct investment soared by 34 percent, demonstrating strong international confidence.

In the field of cross border e-commerce, Hainan, with its geographical and policy advantages, has become an ideal destination for duty-free shopping and cross border e-commerce. In 2024, duty free sales reached 3.51 billion yuan ($483 million). The Hainan FTP has also actively explored the digital economy and low carbon economy, driving reform and innovation. For instance, in collaboration with the Wenchang International Aerospace Center, Hainan has planned and developed the aerospace information industry.

For global businesses, Hainan not only provides access to China's vast consumer market but also serves as a testing ground for future economic models. It represents China's high-quality development, which is now open for the entire world to participate in and benefit from.