China SCIO | March 31, 2026

The Hainan Free Trade Port (FTP) is unleashing fresh consumption momentum following the launch of its island-wide special customs operations. With a multi-layered duty-free system and innovative scenarios, the region is driving upgrades in both domestic and global consumption, officials said at a Monday briefing.

On March 30, 2026, the State Council Information Office holds a press conference in Beijing on the 6th China International Consumer Products Expo. [Photo by Liu Jian/China SCIO]
According to Executive Vice Governor Bateer, Hainan is building a multi-layered duty-free consumption system integrating offshore duty-free shopping, duty-free imported daily consumer goods for local residents, duty-free imported pharmaceuticals and medical devices, and duty-free sales of exhibits during the China International Consumer Products Expo, making duty-free purchases more accessible.
Its two core FTP policies — "zero tariffs, low tax rates, and a simplified tax system," and "five key facilitations for trade, investment, capital, personnel, and transport, plus secure and orderly data flow" — are facilitating customs clearance, bonded displays, and duty-free sales; the 86-country visa-free policy further smooths international access, linking global consumers and resources, said Vice Minister of Commerce Sheng Qiuping.

Shoppers flock to a duty-free shopping mall in Sanya, southern China's Hainan province, Dec. 18, 2025. [Photo/Xinhua]
Supported by these policies, duty-free shopping is becoming a routine part of daily life. Bateer noted that offshore duty-free categories now cover 47 major items, including domestic shoes and hats, scarves, clothing and accessories, tea, coffee, and ceramics. Local residents can also enjoy zero-tariff imported goods at five currently operating stores.
Consumption is also diversifying. In health consumption, for example, a wider range of options is now available. According to Bateer, at the Boao Lecheng International Medical Tourism Pilot Zone, over 560 licensed medical devices and special foods have been made available, and thanks to the zero-tariff policy, the cost of using imported devices has fallen by around 13%.

Tourists take yachts in Sanya, southern China's Hainan province, Feb. 21, 2026. [Photo/Xinhua]
Leisure and experiential consumption are emerging as a new growth engine. The yacht industry, for instance, is offering tourists a range of entertainment options on the sea including diving, weddings, wine tastings, ocean fishing, and even various forms of low-altitude travel, according to the officials.
Beyond consumer benefits, the Hainan FTP is also creating opportunities for businesses, Bateer noted. "The expansion of the Hainan FTP's zero-tariff catalog to over 6,600 items opens up more opportunities for expo exhibitors to establish production facilities and supply chain hubs in Hainan, extending their reach to the Chinese mainland and Southeast Asia."

