Hainan Free Trade Port vividly demonstrates China's high-level opening-up

Editor's note: Bao Shujun is a researcher of the International Cooperation Center of the National Development and Reform Commission. The article reflects the author's opinions and not necessarily the views of CGTN.

This year, the Hainan Free Trade Port will begin its customs closure operation, further showing China's determination to open up to the world. Hainan's high-level opening-up is entering a period of strategic opportunities. Since the release and implementation of the "Master Plan for the Construction of Hainan Free Trade Port" five years ago, China has accelerated efforts to build a free trade port with Chinese characteristics and global influence, making Hainan a model of reform and opening-up in the new era.

Over the past five years, Hainan's export-oriented economy has developed rapidly, with high-level opening-up and high-quality development reaching new heights. Currently, 158 countries and regions have invested in Hainan. A total of 38 domestic and foreign free trade zones (ports) have established partnerships with Hainan. The degree of economic openness has risen from 17.3 percent in 2018 to 35 percent in 2024, and the average annual growth rate of actual foreign investment used was estimated to be around 36 percent. In 2024, the total value of goods trade imports and exports by Hainan-based enterprises reached 277.65 billion yuan, a year-on-year increase of 20 percent. Among this, exports surpassed the 100-billion-yuan benchmark for the first time, reaching 106.22 billion yuan, an increase of 43.5 percent; while imports reached 171.43 billion yuan, an increase of 8.9 percent.

Hainan has actively aligned itself with high-level international economic and trade rules, accelerating institutional opening-up, and striving to take the lead. By accurately understanding the resource endowments and industrial strengths of neighboring countries, Hainan is seizing the important window period for economic and trade cooperation and accelerating high-level opening-up toward ASEAN. 

In 2024, member nations of the Regional Comprehensive Economic Partnership (RCEP) accounted for 30 percent of Hainan's total imports and exports. This year marks the third anniversary of RCEP's full implementation. Trade volume has steadily expanded, industrial cooperation has become closer, and policy benefits continue to be released. Other RCEP member countries have become Hainan's main trading partners. RCEP's tariff concessions have also helped more“Made in Hainan”products enter regional markets.

Hainan has continued to strengthen the foundation and conditions for opening up. Its modern industrial system is playing a key supporting role. Currently, four leading industries — tourism, modern services, high-tech industries, and tropical specialty high-efficiency agriculture — account for about 67 percent of the province's GDP, nearly 14 percentage points higher than in 2018, achieving both quantitative and qualitative economic growth. Industrial development in Hainan has further boosted its level of openness. 

For example, in 2024, Hainan's imports and exports with BRI countries reached 167.7 billion yuan, an increase of 41.5 percent, accounting for 60.4 percent of its total trade. This helps strengthen exchanges, cooperation, and functional alignment with free trade zones in BRI countries and regions, allowing Hainan to play a unique role in linking domestic and international economic cycles.

As an important gateway for China's opening-up in the new era, Hainan is speeding up efforts to explore effective ways for the free trade port to serve and integrate into the new development pattern. The customs closure of Hainan Free Trade Port follows the principle of "front-line opening, second-line control, and free flow within the island," and aims to establish a policy and institutional framework of "tariff-free, low tax rates, and simplified tax system," along with free and convenient flow in trade, investment, cross-border capital, movement of people, transport, and safe and orderly data flow. 

After the full customs closure of Hainan Free Trade Port, its global connectivity and convenience will rise to a new level. This will further promote quality and efficiency of Hainan's economic and social development, continuously improve its business environment, gradually strengthen industrial competitiveness, boost momentum for high-quality growth, and more effectively gather global elements and allocate global resources. It will form a broader, wider, and deeper pattern of opening-up, making the Hainan model a vivid example of China's high-level opening-up.