A New Chapter for Hainan
In just two days, on December 18, 2025, Hainan province will roll out special customs operations, marking a bold new era for China's island free trade port. For coffee veteran Huang Haiwen, what started as a factory dream in 1992 is now fueling Hainan's rise as a global trade hub. Unroasted beans joined the zero-tariff list on January 26, 2025, slashing costs and opening doors to beans from around the world. ☕🌍
Why Special Customs Matter
These operations hinge on three principles: freer access at the first line, regulated access at the second line, free flow within the island.
- First line: Broad zero-tariff treatment, with some sensitive goods still regulated.
- Second line: Zero-tariff goods entering the Chinese mainland face standard duties, unless processed in Hainan with at least 30% added value.
Beyond Coffee: A Model for Opening-Up
This experiment builds on FTZ norms seen in Hong Kong, Singapore, and Dubai but keeps Hainan administratively tied to the Chinese mainland. Its natural island separation allows a unique balance: high-level liberalization paired with precise controls. 🚢🌴
Under the CPC’s Fourth Plenary Session, Hainan FTP is set to reach high standards during the 15th Five-Year Plan, streamlining taxes, easing investment, and ensuring secure data flows. From simplified VAT and consumption tax to a single retail sales tax, reforms aim for a predictable, competitive environment.
What’s Next?
As protectionism grows elsewhere, China is betting on coordinated opening-up. Hainan’s special customs operations could become a blueprint for combining freedom with discipline—shaping the next era of economic modernization. Keep an eye on the island’s palm-lined ports and buzzing coffee labs; the world is watching. 👀
Reference(s):
Hainan special customs operations: China's next era of opening-up
cgtn.com
