From the establishment of Hainan as a province and special economic zone in 1988, to the launch of the free trade zone in 2018, the release of the Overall Plan for the Construction of the Hainan Free Trade Port in 2020, and finally the formal commencement of island-wide independent customs operation in 2025, Beijing’s policy support for Hainan has advanced in step-by-step leaps.
The start of closed customs operations at the Hainan Free Trade Port marks another major milestone in China’s reform and opening-up process, following the creation of the Shenzhen Special Economic Zone and the development of Shanghai’s Pudong New Area. It signals a critical step forward in China’s pursuit of higher-level, deeper institutional opening. Going forward, Hainan Island will function as a special customs supervision zone. Under the regulatory framework of “opening the first line, controlling the second line, and free circulation within the island”, the free flow of goods, capital, people and data will be achieved at a more advanced level.
The completion of this crucial leap will define the trajectory of the post–closed-port period during the 15th Five-Year Plan. With more transparent institutions and freer factor mobility, Hainan aims to demonstrate that it is not merely a Chinese testing ground, but a new source of momentum on the global free trade map.
