Editor’s Note
The official island-wide customs closure of the Hainan Free Trade Port marks a significant new phase in China’s opening-up. This article explores the developments at a key port and the broader implications for trade and connectivity.
The world’s attention is once again focused on the shores of the South China Sea, one month later.
On December 18, 2025, the Hainan Free Trade Port officially initiated island-wide customs closure, marking a new milestone moment for China’s opening-up.
At the Nanshan Port Area, 45 kilometers from downtown Sanya, a bustling scene unfolds. Since the island-wide customs closure on December 18, 2025, Nanshan Port has anchored its efforts on the core goal of efficient customs clearance at the “second line,” fully ensuring the stable operation of inspection equipment and facilities. Currently, all types of equipment and facilities are running smoothly, strongly supporting the orderly conduct of “second line” cargo clearance operations.
On the afternoon of December 22, 2025, under clear skies at Sanya Phoenix International Airport, the DV482 flight “Prague-Sanya” operated by Kazakhstan’s SCAT Airlines smoothly taxied to its parking position. The aircraft’s wings passed through the arc of a water salute, the highest ceremonial honor in civil aviation, its fuselage reflecting the sparkling water curtain and the azure sky. This flight, carrying 115 Czech passengers and 9 crew members, not only completed an intercontinental journey across Eurasia but also marked the official launch of China’s first Seventh Freedom passenger route, a significant achievement for Sanya in high-level opening-up.
As one of the most open air traffic rights in the international air transport sector, the “Seventh Freedom” is hailed by the industry as “the most groundbreaking air traffic right in China’s opening-up.” Its core breakthrough lies in breaking the traditional restriction that airlines “must return to their home country,” allowing an airline from one country to operate independent routes between two other countries, akin to granting international carriers the freedom to “open shops across continents” in the global aviation network.
After the island-wide customs closure, traveling and shopping in Hainan have become more convenient and affordable. Currently, citizens from 86 countries can enter Hainan visa-free. Sanya is actively expanding international air channels. To date, it has cumulatively opened 42 international routes covering 32 international destinations. Under the dual convenience of “visa-free + direct flights,” Sanya has become a popular choice for an increasing number of international tourists seeking spontaneous travel, making the Free Trade Port’s “golden signboard” shine even brighter.
At the Hairun Gold and Jewelry Industrial Park in Sanya Yazhou Bay Science and Technology City, Yang Dan, Deputy General Manager of Hainan Hairun Pearl Co., Ltd., did the math: “Jewelry products processed in Hainan can be exempt from import tariffs after value addition. Combined with other policy incentives, the overall tax rate is reduced by about half, significantly lowering corporate costs.”
The policy of tariff exemption on value-added processing is one of the most valuable policies of the Hainan Free Trade Port. This policy can significantly reduce the domestic sales costs of related enterprise products, further enhance their competitiveness in the domestic market, and allow enterprises to reap tangible benefits.
Entering the Hairun Pearl Inlay Factory, the workshop is brightly lit, shimmering with the warm luster of pearls and the fine texture of metal. Workers in uniform attire are busy following standardized procedures. Between their fingertips, imported pearls are being given new value. This batch of urgently produced orders is the second batch of imported pearl custom pendants after the customs closure.
Ruanshi Pearl has also targeted the potential of Free Trade Port policies, registering and establishing a wholly-owned subsidiary, Hainan Sanyuegang Jewelry Co., Ltd., in the Jingu Industrial Park of Tianya District to lay out value-added processing business.
Relying on the core policy of tariff exemption on value-added processing, the company achieves a leap in product value through creative design and refined processing of imported pearl raw materials. After meeting the value-added rate threshold, it successfully enjoys the benefit of exemption from import tariffs for domestic sales, significantly reducing operating costs. On December 30, 2025, it completed its first tariff-exempt value-added processing business, directly benefiting from a 21% reduction in import tariffs on seawater pearls.
After the customs closure, an open Sanya continues to attract the attention of global investors.
The Sanya Investment Promotion Bureau released the “Sanya City Investment Project Opportunity List,” centrally launching 29 high-quality projects to attract global premium capital to jointly build the Hainan Free Trade Port and share new development dividends.
Institutional dividends and market opportunities are transforming into a strong momentum for capital concentration in Hainan, making Sanya a “preferred location” for domestic and foreign enterprises to establish and develop businesses.
Data provides the most intuitive footnote for confidence: From the start of the island-wide customs closure until January 13, 2026, Sanya added 3,924 new business entities, averaging over 150 per day. This impressive growth figure is not just a numerical increase but a firm vote of confidence from capital in the quality of the Hainan Free Trade Port’s institutional opening and Sanya’s business environment.
With the coordination between customs, commerce departments, and business entities, in the first month after the island-wide customs closure, Sanya successfully completed 8 batches of “zero-tariff” commodity import businesses, with a value nearing 100 million yuan. The imported goods included scientific research instruments and medical equipment such as surgical microscopes and slide scanners, significantly reducing procurement and operational costs for local medical and scientific research institutions.
The cultural and artwork trading market also got off to a “flying start,” adding a new dimension to the Free Trade Port’s characteristic openness. Two auctions held at the Sanya CBD Cultural Relics and Art Center each achieved turnover exceeding 10 million yuan. Behind the火爆 scene is the strong support of the Free Trade Port’s cultural trade opening policies.
The sustained heating up of the consumer market is never an accidental gathering of traffic but an inevitable result of institutional empowerment and policy护航.
At the electronics consumption area of the Sanya International Duty-Free Shopping Complex, long queues extend from the stores into the aisles; in front of gold and jewelry counters, consumer enthusiasm runs high… The dividends of customs closure are permeating the consumer market, and Sanya’s duty-free industry is ushering in a “golden moment” of high-quality development. In recent days, major duty-free shops have been bustling with crowds and warmth, with the surging人流 becoming a vivid portrayal of the释放 of policy红利.
According to data from the Sanya Municipal Bureau of Commerce, from the start of the island-wide customs closure until January 15, 2026, Sanya’s duty-free sales reached 31.5 billion yuan, a year-on-year increase of 38.1%.
Behind this series of achievements is the continuous释放 of the Hainan Free Trade Port’s policy dividends of “zero tariffs, low tax rates, and simplified tax system,” the continuous optimization of Sanya’s business environment, and the inevitable result of the resonance between institutional opening and industrial upgrading.