Hainan will officially launch its island-wide customs closure at the Hainan Free Trade Port (FTP), marking a new phase in its development. The Hainan FTP is set to play an increasingly important role as an open gateway in China's new development pattern.

In recent years, the construction of the Hainan FTP has progressed steadily and delivered remarkable results. Policies related to finance, customs clearance and investment have been continuously optimized, while the level of institutional opening-up has been consistently enhanced.

In 2020, the Hainan FTP implemented a preferential income tax regime, including the "double 15 percent" tax incentive policy. This includes a reduced 15 percent corporate income tax (CIT) rate for enterprises registered in the Hainan FTP and engaged in encouraged industries, as well as a capped 15 percent individual income tax (IIT) rate for high-end and urgently needed professionals working in Hainan.

Over the past five years, more than 8,000 new foreign-invested enterprises have been established in Hainan and the actual utilization of foreign capital has exceeded 100 billion yuan (about $14.1 billion), underscoring its expanding high-level opening-up and contribution to building an open world economy.