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Read in Chinese
Speakers:
Mr. Feng Fei, secretary of the Hainan Provincial Committee of the Communist Party of China (CPC) and chairman of the Standing Committee of the Hainan Provincial People's Congress
Mr. Liu Xiaoming, deputy secretary of the Hainan Provincial CPC Committee and governor of Hainan province
Mr. Wang Changlin, vice chairman of the National Development and Reform Commission (NDRC)
Mr. Liao Min, vice minister of finance
Mr. Yuan Xiaoming, assistant minister of commerce
Mr. Wang Lingjun, vice minister of the General Administration of Customs of China (GACC)
Chairperson:
Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO
Date:
July 23, 2025
Shou Xiaoli:
Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are very pleased to have invited Mr. Feng Fei, secretary of the Hainan Provincial Committee of the Communist Party of China (CPC) and chairman of the Standing Committee of the Hainan Provincial People's Congress; Mr. Liu Xiaoming, deputy secretary of the Hainan Provincial CPC Committee and governor of Hainan province; Mr. Wang Changlin, vice chairman of the National Development and Reform Commission (NDRC); Mr. Liao Min, vice minister of finance; Mr. Yuan Xiaoming, assistant minister of commerce; and Mr. Wang Lingjun, vice minister of the General Administration of Customs of China (GACC), to brief you on the development of Hainan Free Trade Port (FTP), and to answer your questions.
Now, I will give the floor to Mr. Wang for his introduction.
Wang Changlin:
Good morning, everyone. The establishment of a free trade port with Chinese characteristics in Hainan province represents a significant reform and opening-up initiative, with General Secretary Xi Jinping playing a personal role in its design, planning and promotion. In June 2020, the CPC Central Committee and the State Council officially released the "Overall Plan for the Construction of Hainan Free Trade Port." Over the past five-plus years, we have earnestly studied and implemented the guiding principles of General Secretary Xi Jinping's important views on the construction of Hainan FTP. Under the direct leadership of the Central Leading Group for Coordinated Regional Development, and in close collaboration with Hainan province and relevant departments, we have prioritized institutional integration and innovation. We have accelerated reform and opening up in key areas, rolled out a series of landmark and pioneering innovative measures, and established an initial policy and institutional framework for the free trade port. The core features of this framework can be summarized as "4, 3, 2, 1."
"4" refers to a more convenient flow of the four key factors of people, goods, capital and data. People from a total of 85 countries can enter Hainan visa-free. Yangpu Port in Hainan now ranks second nationwide in terms of the total tonnage of internationally registered vessels. Capital can be freely and conveniently transferred between multifunctional free trade accounts and overseas accounts in accordance with the law. Outbound data flows are regulated through a negative list.
"3" refers to the accelerated opening up of the three major areas of trade in goods, trade in services and investment. We have introduced "zero tariff" policies for the import of raw and auxiliary materials, transportation vehicles including yachts, and self-use production equipment. China's first negative list for cross-border trade in services has been issued and implemented. We have launched 22 special measures to ease market access, and we now have the shortest negative list for foreign investment access in the country.
"2" refers to the enhanced tax incentives for both enterprises and individuals. A preferential 15% income tax rate for both corporations and individuals has been implemented, with cumulative tax reductions and exemptions exceeding 31 billion yuan (about $4.3 billion) and 17 billion yuan, respectively. The pilot policy exempting import tariffs on products with 30% or higher value added after processing has been expanded to cover the entire island. The offshore tax-free shopping quota has been increased to 100,000 yuan per person per year.
"1" refers to the continuous improvement of the legal protection centered on the dedicated Hainan Free Trade Port Law. The port's institutional arrangements have been clarified in the form of laws, and more than 40 supporting regulations have been issued to ensure that reform and innovation measures are effectively implemented.
Altogether, these policies and systems have enabled Hainan to move steadily and energetically toward greater opening up and development, securing significant phased results and laying a solid foundation for the launch of the island-wide special customs operation.
This is a landmark project in the construction of Hainan FTP, as well as a milestone and important step toward deeper opening up. Special customs operation means designating the entire Hainan Island as a special customs supervision area, implementing a liberalization and facilitation policy system characterized by opening the "first line," efficient control at the "second line," and free flow within the island. Opening the "first line" refers to implementing a series of measures for free and convenient entry and exit between Hainan FTP and other countries and overseas regions. Efficient control at the "second line" means precise regulation of entry and exit between Hainan FTP and other regions on the Chinese mainland in response to the liberalization at the first line. Free flow within the island refers to the relatively unrestricted movement of production factors within the port. In this context, special customs operation does not mean sealing off the island, but represents further opening up. After the operation, Hainan's connection with the international community will be more seamless. This is of great significance for accelerating the inflow of quality global resources, driving high-quality development of the free trade port, and helping blaze new trails in China's reform and opening up.
In line with the phased approach outlined in the overall plan and taking into account Hainan's actual development conditions, we have worked with relevant departments to formulate a package of special customs operation policies for the current stage. These can be summarized as "four more" policies:
First is implementing a more preferential zero tariff policy for goods. The proportion of eligible zero-tariff items imported through the "first line" will be increased from 21% to 74%. Goods can circulate among eligible enterprises within the island without incurring import duties. Processed goods that achieve at least 30% value-added content can be sold to the mainland free of import duties.
Second is to execute more relaxed trade management measures. On the "first line" import side, some imported products currently prohibited and restricted nationwide will be allowed into Hainan.
Third, more convenient passage measures will be implemented. Currently the eight existing ports open on the island will serve as "first-line" ports, and eligible imported goods will be released directly. Ten "second-line" ports such as Haikou New Port and Haikou South Port will be used to implement innovative and convenient passage measures for goods entering other regions on the Chinese mainland.
Fourth, we will implement a more efficient and precise supervision model. Low-intervention, high-efficiency precise supervision will be implemented for "zero-tariff" goods, as well as goods with relaxed trade management measures to ensure the smooth implementation of various opening-up policies. Relevant policy documents will be released to the public later and implemented from the date of the island-wide special customs operation.
The scheduled date for launching the operation is December 18, 2025, with the approval of the CPC Central Committee. On December 18, 1978, the third plenary session of the 11th CPC Central Committee launched the great journey of reform, opening-up and socialist modernization. Initiating the island-wide special customs operation on December 18 is symbolic. It also demonstrates to the world China's unswerving determination and confidence in expanding high-level opening up. In the next few months, we will make every effort to complete the follow-up preparations. We will help business entities fully understand special customs operation policies and conduct related business tests.
The island-wide special customs operation marks the beginning of a new stage of opening up and development for the Hainan FTP. It is a long-term task that will be continuously promoted. Next, following the decisions and deployments of the CPC Central Committee and the State Council, we will see the special customs operation as an opportunity to actively promote the implementation of various policies. We will continuously expand the level of openness based on the needs of Hainan's development, continuously improve the system of policies and institutions of the free trade port, accelerate the establishment of new open economy institutions, and strive to build a leading gateway for China's opening up in the new era.
That is all for my briefing. Thank you.
Shou Xiaoli:
Thank you, Mr. Wang Changlin. Next, let's give the floor to Mr. Feng Fei.
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Feng Fei:
Friends from the media, ladies and gentlemen, good morning. General Secretary Xi Jinping attaches great importance to the reform, opening up, and development of Hainan, instructing us to accelerate the construction of a free trade port with Chinese characteristics and global influence, and to build a leading gateway for China's opening up in the new era. At present, the construction of the Hainan FTP has entered a new stage of taking shape and gaining momentum and is about to launch island-wide special customs operation. "Taking shape" refers to the initial establishment of the system of policies and institutions of Hainan FTP, as introduced by Mr. Wang Changlin. "Momentum" mainly lies in the achievements and development momentum over the past five years of preparation.
First, we have expanded opening up. The actual use of foreign capital reached 102.5 billion yuan, with an average annual growth of 14.6%. Outward direct investment reached 9.78 billion U.S. dollars, with an average annual growth of 97%. 8,098 new foreign-funded enterprises were established, with an average annual growth of 43.7%. The average annual growth of goods trade and service trade was 31.3% and 32.3%, respectively. 176 countries and regions invested in Hainan, and the economic outward orientation increased to 35%. The visa-free policy in Hainan is the best in the country, with 85 countries eligible for visa-free entry to Hainan.
Second, the industrial system is becoming increasingly optimized. The four leading industries of tourism, modern service industry, high-tech industry, and tropical high-efficiency agriculture increased their combined share by 13.7 percentage points in five years, accounting for 67% of the province's GDP. New quality productive forces have been flourishing, with the output value of Nanfan seed breeding exceeding 18 billion yuan. The gross ocean product (GOP) grew at an average annual rate of 13.9%. China's first commercial space launch site was successfully built and has the capability for high-density, multi-model launches. Offshore duty-free sales accounted for more than 8% of the global duty-free market. Boao Lecheng basically achieved synchronization of medical technology, equipment, and drugs with international advanced standards. Hainan has gained approval for 18 Chinese-foreign cooperative education projects above the undergraduate level and two independent education projects from high-level overseas universities.
Third, the development environment continues to improve. The ecological environment of air, rivers, lakes, and nearshore sea areas remains among the best in the country, with PM2.5 concentration at 12 micrograms per cubic meter. The proportion of clean energy power generation and installed capacity exceeded 70% and 80%, respectively. The penetration rate of new energy vehicles is 59.6%, ranking first in the country. The Boao zero-carbon demonstration zone achieved a 99% carbon reduction, certified by authoritative institutions at home and abroad. The country specifically introduced the Hainan Free Trade Port Law, providing stable expectations at home and abroad. A one-stop international commercial dispute resolution mechanism that integrates mediation, arbitration, and litigation guarantees promising prospects, fairness, and transparency for all enterprises investing in Hainan.
Fourth, the sense of fulfillment among the people continues to grow. "Good education near home" and "minor illnesses can be treated locally, and major illnesses do not require leaving the island" are becoming realities. The average life expectancy in Hainan has reached 80.5 years, and the permanent population has increased by 530,000 in five years, making it one of the eight provinces in China with a net inflow of permanent residents. Hainan is becoming a new frontier for China's opening up, a new hot spot for regional mutually beneficial cooperation, and a new engine for promoting economic globalization, laying a solid foundation for achieving the special customs operation and expanding openness.
Regarding the expansion of openness through the special customs operation, we are making careful preparations in accordance with the deployments of the central government. In terms of the special customs operation policies, preparations have been completed. Policies and supporting documents such as the import taxable goods catalog, the list of prohibited and restricted import and export goods and items, and duty exemption for domestic sales of processed value-added products have been formulated. The software and hardware conditions have been fully completed. The hardware facilities for special customs operation have passed national acceptance, and information systems such as the international trade "single window" and the smart customs supervision system have also been built. In terms of stress test drills, we are advancing step by step, accelerating full-process, full-element, full-coverage, large-sample, and practical stress tests to ensure both "opening up" and "managing well." After five years of hard work, we feel more confident. Next, we will make every effort to ensure the smooth and timely launch of the special customs operation in strict accordance with the central government's deployments. Thank you.
Shou Xiaoli:
Thank you, Mr. Feng, for your introduction. The floor is now open for questions. Please identify the media outlet you represent before asking your question. You may now raise your hand.
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Xinhua News Agency:
The island-wide special customs operation, which involves a wide range of aspects, is a highly innovative, complex and systematic project. What specific measures will Hainan province take to ensure effective implementation of these policies? Thank you.
Feng Fei:
Thank you. I think the question you raised is one that many people are concerned about. The special customs operation in Hainan is a landmark and foundational project for the development of Hainan FTP. It is of milestone significance. The current top priority is to ensure the implementation of the policies. We will accurately understand the mission of the special customs operation, earnestly fulfill the primary responsibility, and spare no efforts to ensure full implementation through an approach in which policies can be transformed into concrete projects, and task-list management is adopted to ensure measurable outcomes. Specifically, our efforts will focus on the following three perspectives:
First, we will ensure implementation by enhancing the sense of gain for business entities and the people. The most direct way to gauge the effects of a policy measure is to look at the perception of enterprises and the people. We will strengthen policy publicity and interpretation, enhance guidance services and drive large-scale international investment promotion, ensuring that enterprises and the public are fully informed of policies and fully enjoy the benefits of the policies.
Second, we will ensure implementation through integrated institutional innovation. In order to make it more conducive for enterprises to freely, conveniently and compliantly use policies, we will promote the integration of the special customs operation policies with the various free trade port policies that have already been implemented, amplifying the combined effects of the policies to achieve tangible dividends through substantial reform and innovation. At the same time, we will ensure implementation by building an important intersection of domestic and international circulations. The implementation of the policy on the special customs operation is itself a part of expanding institutional opening up. We will accelerate the alignment with international high-standard economic and trade rules, and build "two bases," "two hubs" and "two networks," which refer to the headquarters base for Chinese enterprises to enter the international market and the headquarters base for foreign enterprises to enter the Chinese market, the international shipping hub for the New International Land-Sea Trade Corridor and the aviation hub serving as a regional gateway to the Pacific and Indian oceans, and the international economic and trade cooperation network and the international people-to-people exchange cooperation network. These efforts will attract more foreign investment, make foreign trade more dynamic, enable foreigners to live and work with a greater sense of satisfaction in Hainan, and better integrate Hainan province into the unified national market. We will demonstrate the firm confidence that "China will open its door ever wider" and the vast opportunities this commitment presents through the tangible effects of policy implementation. Thank you.
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Jimu News:
The Master Plan for the Development of Hainan Free Trade Port proposes that the institutional system of liberalization and facilitation with zero tariff as basic feature be applied to trade in goods. Could you introduce the changes in the tax policies for goods after the implementation of the special customs operation Thank you.
Liao Min:
Thank you for your question. This issue has already been addressed by my colleague in his introduction earlier. I will further elaborate from a fiscal perspective. Zero tariff is one of the major features of the Hainan FTP's policy and institutional system. In recent years, the Ministry of Finance has earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council, taken into full account the actual situation in Hainan, and worked with relevant departments to successively introduced three import zero-tariff policies for raw and auxiliary materials, means of transport and yachts, and production equipment imported by enterprises for own use. Therefore, we have gained a series of phased results through our earlier practices. These have injected new momentum into the high-standard opening up of Hainan FTP, and provided valuable experience for the island-wide special customs operation and related management in the next step.
In order to steadily promote the island-wide special customs operation of Hainan FTP, the MOF has carefully summarized the relevant practical experience in the early stage, and has also taken into account factors such as the free trade port development progress, the industrial conditions, and the conditions of regulatory software and hardware. We have taken the lead in formulating the tax policies for goods entering and exiting "first-line" and "second-line" ports and circulating within the island, as well as the catalog of imported taxable commodities at Hainan FTP. These policies are scheduled to take effect upon the launch of the island-wide special customs operation. At that time, the existing zero-tariff policy for imports will be incorporated into the new goods tax policies for implementation, basically establishing the zero-tariff system for imports in Hainan FTP.
After the introduction of the special customs operation, the main arrangements for goods tax policies will be as follows: Independent legal entity enterprises registered in Hainan FTP, as well as eligible public institutions and private non-enterprise units within the free trade port, can be exempted from import taxes on goods imported through the first-line ports that are not listed in the catalog of imported taxable commodities. Zero-tariff goods and their processed products can circulate among entitled entities within the island without being subject to import taxes. For goods produced by enterprises in encouraged industries of Hainan FTP, when the value-added through processing in Hainan reaches or exceeds 30%, they can be exempted from import duties when entering the Chinese mainland through the second-line ports. Compared to the policies before the introduction of the special customs operation, there are three significant changes.
First, the coverage of zero-tariff goods has significantly expanded. After the island-wide special customs operation, zero-tariff imports will be managed under a negative list system, replacing the previous positive list with the catalog of imported taxable commodities. The range of zero-tariff goods will expand from the current 1,900 tariff lines to about 6,600, accounting for about 74% of all taxable goods, with an increase of nearly 53 percentage points compared with the level before the implementation of the special customs operation. Therefore, you can see that this has significantly enhanced the scope and level of openness.
Second, the scope of entitled entities has also significantly expanded. Currently, the zero-tariff import policy is limited to independent legal entities and public institutions registered in Hainan FTP. After the launch of the island-wide special customs operation, the entitled entities will basically cover all types of enterprises, public institutions and private non-enterprise units with actual import needs across the island.
Third, policy restrictions have been further relaxed. After the launch of the special customs operation, zero-tariff goods and their processed products will no longer be limited to enterprises' own use. They can freely circulate among entitled entities without the need to pay additional import taxes. This has positive significance for extending the island's industrial chain, enhancing industrial competitiveness and forming an industrial cluster effect.
Overall, the above policies are conducive to further reducing the production costs of market entities, stimulating market vitality, and significantly improving the level of trade liberalization and facilitation in the Hainan Free Trade Port. Subsequently, the Ministry of Finance will continue to monitor the implementation of relevant policies, with particular focus on the sense of benefit of market entities, to timely optimize and adjust policy content. We will also work with the Hainan provincial government to enhance services for market entities. At the same time, we will also strengthen management and continuously promote the construction of the Hainan Free Trade Port, including elevating China's high-standard opening up to yield new outcomes. That's all for my answer. Thank you.
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CCTV:
We understand that after adopting island-wide special customs operations, second-line checkpoints will be established for the passage of goods, items, personnel, and transportation vehicles between the Hainan Free Trade Port and the mainland. It is understood that some enterprises and travelers are worried about whether it will be inconvenient to enter and exit Hainan Island after the launch of special customs operations. For example, whether special travel permits will be required for tourism visits. Could you give us more details on this? Thank you.
Wang Changlin:
You raised a very good question, and indeed, people are quite concerned about this aspect. As I just mentioned, special customs operations are for the purpose of opening up and development. To be precise, it can be defined by few keywords: special customs operations, expanded opening up, and accelerated development. Therefore, after the launch of special customs operations, the exchanges between Hainan and the international community will be smoother and freer, and the connectivity with the mainland will be more convenient and efficient. According to the current design of special customs operations, except for some goods entering the mainland from the Hainan Free Trade Port that need to be inspected, most goods and all personnel, items, and transportation vehicles entering and exiting Hainan Island will still be managed according to current regulations, with no changes after the launch of special customs operations. For those traveling or on a business trip to Hainan Island, no extra documents are needed, just as it is now.
For goods that need to be inspected, here is an introduction for you. To avoid the impact of the opening-up measures implemented at the "first line" on the mainland market, precise management is required at the second line checkpoints, covering three categories of goods, including "zero-tariff" goods, goods benefiting from value-added processing policies, and goods with relaxed trade management measures. Next, to ensure customs clearance efficiency, the following measures will mainly be taken:
First, we will build a "one-stop" customs clearance model. Enterprises can pre-declare the information of goods leaving the island online. Customs, security inspection, and other departments will coordinate clearance procedures at the second line checkpoints and issue release orders, thereby achieving "one-time declaration, one-time inspection, and one-stop release".
Second, we will implement the strategy of "pushing forward and moving backward". Management matters such as the inspection of agricultural products leaving the island and the collection of transit surcharges originally implemented within the port will be moved forward or backward to areas outside the second line checkpoints to avoid congestion.
Third, we will strengthen intelligent supervision. We will make full use of big data, artificial intelligence, and other methods to strengthen the intelligent construction of customs, maritime safety administration, border inspection, port operators, etc., to achieve information sharing and mutual recognition of supervision.
Fourth, we will strengthen credit management. We will build a credit-based grading and classification regulatory service system. For enterprises with higher credit ratings, we will reduce the frequency of inspections to facilitate quick customs clearance.
Overall, after the launch of special customs operations, Hainan Free Trade Port will continue to maintain convenient exchanges with the mainland. In the future, various entities, especially travelers, will not be affected when entering and leaving Hainan Island. Instead, they will enjoy better travel experiences and services. Thank you.
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Elephant News:
The Overall Plan for the Construction of Hainan Free Trade Port and the Hainan Free Trade Port Law propose to formulate a list of goods and articles prohibited and restricted for import and export at the Hainan Free Trade Port. Can you give us a detailed introduction regarding this list? Thank you.
Yuan Xiaoming:
Thanks for your question. As you all know, trade liberalization and facilitation is one of the five key freedoms and conveniences in the policy and institutional framework design of Hainan Free Trade Port. General Secretary Xi Jinping has made important instructions on the construction of Hainan Free Trade Port on many occasions, and made arrangements again last December. The Ministry of Commerce, together with relevant departments, formulated and issued a list of goods and articles prohibited and restricted for import and export at the Hainan Free Trade Port, as part of the core policies of the free trade port, making a new exploration based on China's current goods trade management model. It can be said that the list is an important institutional arrangement to support the further improvement of trade liberalization and facilitation in Hainan Free Trade Port. Here, I would like to briefly introduce it from two perspectives of transparency and openness.
On the one hand, the list has greatly enhanced the transparency of goods trade management. The list is based on laws and regulations such as the Hainan Free Trade Port Law and the Foreign Trade Law, and for the first time comprehensively and systematically lists the scope of goods and articles that are subject to China's currently effective import and export prohibitions and restrictions, enabling business entities to clearly and conveniently grasp the regulatory boundaries.
Concurrently, the list has significantly increased the openness level of goods trade. Under the premise of fulfilling international convention obligations, safeguarding national security, and ensuring ecological and environmental protection, the list has relaxed the management measures for some imported goods in accordance with the development needs of Hainan Free Trade Port. In short, that means easing restrictions and expanding opening-up pilot programs. The import license requirements for used mechanical and electrical products under 60 commodity codes has been canceled, covering about 80% of such products previously subject to import licensing, which can basically meet own production needs of Hainan's enterprises; at the same time, based on the existing policies of the pilot free trade zone and comprehensive bonded zone, bonded maintenance is permitted for products under 38 commodity codes in Hainan Free Trade Port, achieving the highest level of openness in this field nationwide.
The full text of the list will be published on the Ministry of Commerce's website shortly. The introduction of the list will help optimize the trade development environment and boost trade development momentum within Hainan FTP. Moving forward, the Ministry of Commerce will work with relevant parties to ensure the implementation of the list so that policy benefits flow directly to businesses. Thank you.
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21st Century Business Herald:
The pilot duty-free policy for domestic sales of processed value-added goods has been in place for more than four years. How does this newly introduced policy differ from and improve upon the existing pilot policy? Thank you.
Wang Lingjun:
Thank you for your question. This is an important issue concerning customs policy within the context of Hainan FTP development. The duty-free policy for domestic sales of processed value-added goods refers to the exemption of import duties on specific products from Hainan FTP when they enter the mainland. To qualify, products must be manufactured by encouraged industries within the port and contain imported materials that have a value added of 30% or more within the port. Import value-added tax and consumption tax are levied according to regulations. The policy was first piloted in the Yangpu Bonded Port Area in July 2021. Over the past four years, the pilot policy has been optimized and adjusted multiple times, expanding its scope from just the 2.3-square-kilometer Yangpu Bonded Port Area to cover the entire Hainan FTP. Based on an in-depth summary of the pilot experience, the GACC, in collaboration with relevant departments and Hainan province, has further optimized the value-added duty-free policy for the island-wide special customs operations. This has resulted in the formulation of the Interim Measures for the Implementation of Customs Tax Collection and Administration on Domestic Sales of Value-added Goods Processed in Hainan Free Trade Port of the People's Republic of China. Compared with the existing pilot policy, the duty-free policy for processing value-added goods after the launch of the operation is primarily optimized in the following aspects:
First, the threshold for enterprises to enjoy benefits has been lowered by eliminating the restriction that primary business income from encouraged industries must account for more than 60% of an enterprise's total income.
Second, the scope of eligible imported materials has been expanded. The policy scope has been extended to include tariff-exempt imported goods, building upon the initial pilot that only permitted bonded goods.
Third, the calculation formula for value-added processing has been optimized. The value of goods produced in Hainan FTP is now included in the value-added portion, making it easier for enterprises to reach the 30% value-added threshold.
Fourth, the application scope for cumulative value-added processing has been expanded. When bonded goods are processed and manufactured by different upstream and downstream enterprises, each enterprise's value-added portions can be calculated cumulatively, encouraging enterprises to expand and extend their industrial chains.
Overall, since the introduction of the island-wide special customs operations, the processing value-added policy will lower eligibility thresholds and expand the range of beneficiaries. This will better serve the production needs of enterprises on the island and support the cultivation and development of industrial chains and clusters. Thank you.
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China Arab TV:
What specific initiatives has Hainan FTP taken to promote economic and trade cooperation with Arab countries? In the future, will there be a push for more China-Arab cultural and tourism cooperation projects, such as opening direct flight routes or hosting special economic and trade cultural activities? Thank you.
Feng Fei:
Thank you for your questions. Hainan province attaches great importance to economic, trade, cultural and tourism cooperation with Arab countries. Both Mr. Liu and I have previously visited Gulf and Arab states. In recent years, economic and trade cooperation between Hainan and Arab countries has been steadily growing. Hainan Yangpu Port has established a sister port relationship with Abu Dhabi Port. Additionally, both the maritime route connecting Yangpu Port and Abu Dhabi Port and the air route linking Haikou and Dubai are currently operational. As you just mentioned, we have established direct links by both sea and air, and we plan to further increase the frequency and capacity of these routes. These efforts have further strengthened the Maritime Silk Road and Air Silk Road between China and Arab nations. Khalifa Economic Zones Abu Dhabi, Dubai International Free Zone and Dubai Jebel Ali Free Zone are all global free trade zone partners of Hainan FTP. We now have 40 such partners, many of which are with Arab countries that operate some of the world's most influential free trade zones. Over the past three years, the total value of goods traded between Hainan and League of Arab States has grown by more than 30% annually, exceeding 24 billion yuan in 2024.
With the implementation of island-wide special customs operations, Hainan FTP will fully leverage its advantages as a convergence point of both domestic and international dual circulation. We will significantly expand our open cooperation with Arab countries across economics, trade, tourism, culture, education, clean energy and other sectors. Specific initiatives include hosting the World Free Zone Organization Annual Meeting and conducting tourism promotion activities in Jeddah, Saudi Arabia. As our cooperation deepens, more direct flights will be opened and more special economic, trade and cultural activities will be held. This will enable both sides to create more opportunities and share prosperity based on cultural exchanges and mutual understanding. Please convey our warm welcome to enterprises from Arab countries to invest and establish businesses in Hainan FTP. Thank you.
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Cover News:
In recent years, Hainan has vigorously promoted the development of an international tourism consumption center. What progress has been made so far, and what are the plans for future measures? Thank you.
Liu Xiaoming:
Thank you for your questions. With its slogan "All the Sun, All the Fun," Hainan has long been a dream destination for both domestic and international tourists. In recent years, Hainan has been making great efforts in building itself into an international tourism consumption center, and remarkable outcomes have been made. For example, we have constructed two scenic loop highways. The "outer loop" refers to the scenic ring road around the island, stretching 988 kilometers along the coast, offering ocean views for over 50% of the route. The "inner loop" refers to the scenic ring road surrounding the National Park of Hainan Tropical Rainforest, spanning 466 kilometers through mountainous terrain, weaving together a new landscape of cultural and tourism attractions. As a result, the two scenic loop highways offer travelers a journey where cars move through the scenery, people stroll as if in a painting. Natural beauty of mountains and sea unfolds at every mile. Moreover, we have successfully held the China International Consumer Products Expo for five consecutive years. This expo has become the largest global consumer goods exhibition and trading platform in Asia. This not only provides strong support for sustained consumption growth, but also meeting people's aspirations for a better life. It is an important platform for global enterprises to access the Chinese market and for Chinese enterprises to globalize. We have also stepped up our efforts to foster and promote tourism as a new business format. We've also made great efforts to expand special tourism offerings, including cruises, yachting, aerospace-themed tourism, diving and surfing. "Coming to Hainan for concerts, music festivals, and brand exhibitions" has become the latest trend.
In 2024, Hainan received 97.2 million domestic and international tourist visits, representing an 8% increase over the previous year. Notably, international visitor arrivals more than doubled during this period.
Hainan launched the island-wide special customs operations and expanded its opening-up this year. We will seize the opportunities, and enhance our efforts to build Hainan into an international tourism consumption center. On one front, we will accelerate the development of uniquely appealing cultural tourism consumption experiences. We will build a series of international cultural tourism IPs and programs, while simultaneously promoting the renewal and upgrading of existing scenic spots. This offers visitors more diverse and enriching travel experiences. On another front, we will enhance the tourism consumption environment to ensure safety, reliability, enjoyment and comfort. As such, we launched the "Consumer Confidence in Hainan" service system, providing tourists with end-to-end services covering merchant information, purchases, complaints and rights protection and advance compensation. This -- achieves comprehensive consumer protection across all industries and sectors. Through honest and standardized operations and warm hospitality, we will be committed to making all visitors -- domestic and international -- feel thoroughly welcome and reluctant to leave.
Let me conclude by extending Hainan's warm invitation to all friends: "Come to the ends of the earth, where spring lasts all year round. Hainan welcomes you!" Thank you!
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Dazhong Daily:
In addition to the list of goods and items just introduced, what other measures will the Ministry of Commerce take to promote high-standard opening-up of the Hainan Free Trade Port? Thank you.
Yuan Xiaoming:
Thanks for your question. Driving reform and development through opening-up has been a vital force behind the continuous achievements of China's modernization. The Ministry of Commerce has consistently advanced high-standard opening-up, with a focus on trade and investment, supporting Hainan Free Trade Port in reaching new heights and breakthroughs in opening up. From 2020 to 2024, Hainan's actual use of foreign investment exceeded the total of the previous 32 years since the province's establishment. Whilst the total import and export volume of goods grew at an average annual rate of over 30%, reflecting steady progress in its export-oriented economy.
Amid unilateralism and protectionism rising globally a further economic headwind against globalization is underway. The Ministry of Commerce will continue to fully support the development of the Hainan Free Trade Port, striving to make it an important gateway leading China's opening-up in the new era. This will not only contribute to China's sustained economic recovery but also inject stability and certainty into the world economy. Specifically, our efforts will focus on the following three aspects:
First, we will continue advancing institutional opening-up. We will support Hainan Free Trade Port in proactively aligning with high-standard international economic and trade rules through pilot initiatives. Focusing on trade and investment liberalization and facilitation, market access expansion, and fair market competition, we will deepen institutional innovation to promote compatibility in rules, regulations, administration and standards, creating a world-class business environment.
Second, we will continue to leverage the synergistic advantages of open platforms. While supporting Hainan Free Trade Port development, the Ministry of Commerce has also promoted the establishment of various open platforms including the island-wide Free Trade Pilot Zone, as well as the island-wide Comprehensive Pilot Zone for Cross-border E-commerce, and the Comprehensive Pilot Program for Further Opening-up in the Service Sector. We will co-host the China International Consumer Products Expo with Hainan province. We will continue to support Hainan in strengthening various open platforms in a bid to achieve a "1+1>2" effect, better release the dividends of policies and systems, whilst delivering more achievements in reform and opening-up.
Third, we will be persistent in the cultivation of new growth drivers. We will leverage Hainan's distinctive resources and geographical advantages, focusing on the priorities of strengthening, consolidating and extending industrial chains in key sectors. We will implement targeted policy measures to boost innovative development in the trade of goods, services and the digital trade. Moreover, we will foster new business forms and models, and accelerate industrial cluster development, all in a bid to support the building of a modern industrial system. Thank you.
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China Financial and Economic News:
It was just announced at the conference that Hainan will officially launch the island-wide special customs operations on Dec. 18. How will Hainan province take this opportunity to accelerate high-quality development and build a modern industrial system with their distinctive local characteristics and competitive advantages? Thank you.
Feng Fei:
Thank you for your question. Building a modern industrial system with distinctive Hainan characteristics and strengths is a task entrusted to Hainan by General Secretary Xi Jinping. It is also the most important undertaking in our pursuit of high-quality development. My understanding of these characteristics and strengths is that they should be grounded in Hainan's comparative advantages and developed into competitive industrial advantages. Overall, the launch of island-wide special customs operations will make it easier to pool global production factors, allocate global resources and promote industrial development. Specifically, we have summarized our approach as "4532."
The "4" refers to efforts to strengthening, extending and upgrading the four leading industries. As I mentioned earlier, these four industries currently account for 67% of Hainan's GDP, an increase of 13.7 percentage points over the past five years. In the tourism sector, we will build an international tourism and consumption center to high standards, and develop Hainan into a world-class tourist destination. Mr. Liu just elaborated on this topic. In modern services, one particularly influential initiative is the China International Consumer Products Expo (CICPE), which has been held five times. It is expanding the reach of new forms of trade to international markets, especially Southeast Asia. In high-tech industries, we are working to expand industrial clusters in areas such as offshore wind power, biomedicine, and the digital economy. In efficient tropical specialty agriculture, we are increasing the supply of tropical fruits and vegetables that are novel, unique, high-quality and well-suited to the region, enriching people's vegetable baskets and fruit bowls. I believe that many of you have already tasted some of Hainan's specialty tropical fruits. The "5" refers to five pathways to strengthening development, with the goal of making Hainan a key demonstration zone for advancing new quality productive forces. These five pathways are defined based on Hainan's unique resource endowments: its tropical climate, deep-sea conditions, geographic latitude, ecological environment and the institutional advantages of a free trade port for opening up. We will pursue strength through seed innovation by building a world-class bio-breeding zone and bringing Hainan-developed seeds to global markets. We will pursue strength through marine development by advancing deep-sea science and technology, and strive to build a "Maritime Hainan" as a new frontier for growth. We will pursue strength through aerospace development by leveraging commercial space launch facilities to drive industrial growth. This means using the launch infrastructure to develop industrial chains related to rockets, satellites, data and broader "aerospace plus" sectors. We will pursue strength through green development by building Hainan into a "low-carbon island." We aim to significantly reduce the carbon footprint of Hainan's products and services to enhance their international competitiveness. We will pursue strength through digital development by developing international data centers and advancing large-scale AI models, seizing the opportunities of the new round of technological and industrial transformation. The "3" refers to three key consumption areas: offshore duty-free shopping, health care and education. We aim to build a strong brand for offshore duty-free shopping, enabling Chinese consumers to access high-quality, cost-effective duty-free goods. We will develop Boao Hope City, also known as the Boao Lecheng International Medical Tourism Pilot Zone, into a world-class hub for global medical resources, where more patients from around the world can access cutting-edge pharmaceuticals, medical devices and health care services under special regulatory policies. We will promote the Study in Hainan initiative, allowing more students to access high-level international education without going abroad. In fact, many excellent independent and joint-venture education programs are already operating in the province. The "2" refers to the development of two key pillars on the island: talent and technological innovation. We will accelerate opening up and cooperation to attract top talent from around the world and empower the building of a modern industrial system through technological innovation. As mentioned earlier, this modern industrial system is being developed through enhanced innovation capacity and the establishment of innovation platforms.
We sincerely invite investors from around the world to come and invest in Hainan. We are committed to providing strong services and support to ensure your success in doing business, attracting talent and achieving growth here. Thank you.
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CNR:
To further implement the zero-tariff policy for imported goods and ease trade restrictions in line with the opening up policies of the Hainan FTP, what measures will customs take to ensure efficient and convenient supervision? Thank you.
Wang Lingjun:
Thank you for your question and your interest in the customs work. To better implement the zero-tariff policy for imported goods, ease trade management in line with opening up requirements, and ensure standardized customs supervision over the Hainan FTP, the GACC has formulated the Supervision Measures of the Customs of the People's Republic of China for the Hainan Free Trade Port, along with a set of supporting regulations. These measures clearly define the customs supervision requirements for the movement of goods between the FTP and overseas markets, between the FTP and the Chinese mainland, as well as within the FTP itself after the island-wide special customs operations are launched. They provide institutional support for targeted, efficient and secure customs regulation. The overarching principle is that what is liberalized at the "first line" must be effectively regulated at the "second line," ensuring both targeted regulation and high efficiency. Specifically, there are two key aspects:
First, regarding imports at the "first line," efforts will be made to further enhance customs clearance facilitation. In accordance with the Hainan Free Trade Port Law of the People's Republic of China, the policy of direct release will be applied, with "direct" referring to immediate clearance without delay. Except for goods that are subject to inspection and quarantine or license management in accordance with the law, customs will implement direct release for zero-tariff imports, bonded goods and other eligible categories. This policy was first piloted in June 2020 in the Yangpu Bonded Port Area, and later expanded to the Haikou Comprehensive Bonded Zone, Haikou Airport Comprehensive Bonded Zone and Yangpu Economic Development Zone. It has significantly improved clearance efficiency and reduced customs clearance costs for enterprises. Once the island-wide special customs operations are in place, the direct release policy will be implemented throughout the entire Hainan FTP.
For outbound movement across the "second line," the focus is on intelligent and efficient regulation. First, customs control channels and non-customs control channels will be established at second-line ports. Customs will supervise three categories of goods through the customs control channels: zero-tariff goods, goods enjoying value-added processing policies, and goods subject to relaxed trade management measures. All other domestically circulated goods will pass through the non-customs control channels and be regulated by Hainan province in accordance with existing domestic circulation rules, thereby facilitating trade between Hainan and the rest of the country to the greatest possible extent. Second, for these three categories of goods, customs authorities will introduce an innovative clearance model of "multiple consignments with consolidated declaration." Under this model, enterprises may first complete the outbound procedures across the second line and then submit a consolidated customs declaration afterward, significantly improving clearance efficiency. In addition, to further streamline the second-line outbound declaration process, customs has significantly reduced the number of required declaration items for enterprises filing customs declarations from 105 to 42.
Next, the General Administration of Customs will continuously improve the customs supervision model to suit the island-wide special customs operation, according to its actual implementation and Hainan's practical needs, with the aim to support Hainan's institutional opening-up and empower the high-quality development of the Hainan Free Trade Port (FTP). Thank you.
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Hainan Broadcasting Station (HMG):
The spokesperson just mentioned that the island-wide special customs operation will begin the new stage and long term construction of the Hainan FTP. What measures and actions will be taken after its launch to support the FTP in further expanding its opening-up? Thank you.
Wang Changlin:
Thank you for your question. As you said, the island-wide special customs operation will be a new starting point for the construction of the FTP. Next, we will follow the arrangements of the Master Plan for the Construction of Hainan Free Trade Port and, in collaboration with Hainan province and the relevant departments, continue to improve the policy and institutional system that is compatible with a high-standard FTP. We will adhere to goal-oriented and problem-oriented approaches, and continuously accelerate the pace of opening-up. These efforts can be summarized in the six following areas:
First, accelerating the construction of a trade management system that is safe and convenient and wonderfully facilitates the imports and exports of goods. On one hand, we will further expand the scope of zero-tariff goods to strengthen and expand the goods trade. On the other hand, in order to adapt to the development of service trade, we will accelerate the opening-up of service industries such as tourism, education and medical care, and promote the policy of "granting both market access and operational permits."
Second, focusing on creating an open, transparent and predictable investment environment. We will further relax market access for foreign investment by introducing a new round of special measures to expand market access, deeply implementing the reform to establish a commitment-based access system, and accelerate the establishment of an investment facilitation system with a focus on process supervision.
Third, gradually establishing a financial policy system that is compatible with open development. We will improve and perfect the multi-functional free trade account system, and further enrich account functions and application scenarios. We will orderly expand the opening-up of the financial sector to both domestic and foreign entities, and actively carry out pilot explorations such as cross-border asset management business.
Fourth, implementing more convenient entry and exit management policies. We will further ease restrictions on personnel entry and exit. We will implement more relaxed temporary entry and exit policies for business personnel and convenient work visa policies, and further improve the residence permit system.
Fifth, establishing a more free and open shipping system. We will accelerate the construction of China's Yangpu Port as a port of registry, continuously optimize ship survey and management policies, and enhance the capacity of shipping services. We will further relax airspace control and air rights restrictions, and actively advance the opening of the Seventh Freedom of the Air.
Sixth, building an efficient, convenient and secure cross-border data flow mechanism. This is the current demand of many business entities and is necessary for promoting the development of digital trade. We will promote the orderly expansion of the opening-up of communication resources and related businesses, adjust and improve the negative list for outbound data management, accelerate the construction of international communication service gateways and cross-border submarine optical cables, and actively cultivate and develop the digital economy. Thank you.
Shou Xiaoli:
Let's continue. There are two reporters raising their hands. We'll take the last two questions, please.
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National Business Daily:
In recent years, the Ministry of Finance (MOF) has introduced a series of supportive tax policies to facilitate the construction of Hainan FTP. How will the tax system reform be further promoted after the launch of the island-wide special customs operation? Thank you.
Liao Min:
Thank you for your question. The issue is of great concern to everyone. As we all know, the construction of the Hainan FTP will inevitably involve the reform of the tax system. The overall requirement for the tax system reform, as proposed in the Master Plan for the Construction of Hainan Free Trade Port, is to implement zero tariff, low tax rates and a simplified tax system in steps and stages. This policy will ultimately form a tax system with international competitiveness to support the construction of the Hainan FTP. After the release of the master plan, the MOF has successively introduced multiple tax policies, such as offshore duty-free shopping, zero tariff on some imported goods, and preferential corporate income tax and individual income tax.
After implementing the island-wide special customs operation, the MOF will take into account the actual progress of the FTP construction and the need to advance higher-standard opening-up to the outside world. We will continue to deepen tax system reform to ensure that policy effectiveness is increasingly enhanced and policy benefits are continuously delivered. This will involve the following five aspects:
First, we will continue to implement the current preferential policies on corporate and personal income tax, in order to attract more high-end talent and high-quality enterprises aligned with the needs of free trade port development to settle in Hainan and contribute to its growth.
Second, we will continue to expand the range of zero-tariff goods and adjust the list of taxable imported goods in a timely manner.
Third, we will continue to implement the offshore duty-free shopping policy, and further refine and adjust the policy arrangements to better meet the diverse shopping needs of consumers, supporting Hainan's development as an international tourism and shopping destination.
Fourth, we will actively explore relevant tax policies for imported goods consumed by the island's residents, and when appropriate, carry out a positive list management system, which will allow residents to purchase certain imported products tax-free. We will launch this pilot work as soon as possible to enhance the sense of gain among the island's residents.
Fifth, we will steadily advance research into reforming sales tax. Sales tax mainly involves the consolidation of multiple taxes and fees such as value-added tax, consumption tax, vehicle purchase tax, urban maintenance and construction tax, and the education surcharge. Given its wide scope and complexity, it requires consideration of both the current situation and long-term policy arrangements. We will promote research into simplifying the tax system in line with the principles of prudence, orderly progress and phased implementation, and conduct pilot tests in a timely manner based on the development of Hainan FTP.
Here, I would also like to thank the media for their interest in and support for financial work. Thank you.
Shou Xiaoli:
The last question, please.
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China News Service:
We have noticed that Hainan has always attached great importance to institutional integration and innovation. Could you share some successful cases with us? What are the next steps to promote institutional integration and innovation in relation to the special customs operation? Thank you.
Liu Xiaoming:
Thank you for your questions. Hainan regards institutional integration and innovation as a key driver for promoting high-level openness and implementing reforms. It has cultivated 20 batches comprising 166 innovative cases, more than 40 of which have been recognized by relevant central departments and promoted nationwide. These efforts have fully demonstrated Hainan's role as a pioneering reform and opening up pilot zone. For example, Hainan was the first province in the country to implement a province-wide credit restoration system featuring "one application, one online process," enabling business entities to restore their credit scores after being blacklisted for dishonest behavior without needing to visit in-person. This promotes the effective functioning of both incentive mechanisms for trustworthy behavior and punitive measures for dishonest behavior. We have also introduced a series of reform measures aimed at offering one-stop services, covering matters with the characteristics of the free trade port, such as services for foreigners, foreign enterprises and foreign direct investment. For example, we have taken the lead in the country in establishing a unified, open and transparent provincial platform for land information promotion — known as the "Land Supermarket." The platform enables enterprises to browse, select and acquire land entirely online through "cloud-based land browsing, selection and purchasing." This makes the acquisition of land more efficient, convenient and reassuring for enterprises, while also effectively addressing the issues of "projects without land" and "land without projects." For another example, we have launched and operated multifunctional free trade accounts, explored the establishment of centralized cross-border capital operation centers, developed an innovative full-process supervision model for zero-tariff imported goods, took the lead in implementing electronic tags for duty-free cosmetics, and created a "credit + smart technology" port supervision model. All of these represent valuable explorations in innovating supervision and service models for the upcoming special customs operation.
Looking ahead, we will continue to regard institutional integration and innovation as the "golden key" to driving development and addressing problems. Focusing on the institutional arrangements for the special customs operation of Hainan FTP, we will actively engage in explorations and practices, while promptly summarizing and refining reform and innovation practices in areas such as institutional design, governance system, legal safeguards and supervision models, striving to build a special customs supervision zone with international competitiveness and influence. At the same time, we will use high-standard economic and trade rules as a benchmark, and strengthen the alignment and integration of rules, regulations, governance and standards. We will take a well-planned approach to reform, opening up and high-quality development before and after the special customs operation. Efforts will also be made to cultivate and introduce more innovative achievements from institutional integration that have national demonstrative value and influence as well as distinct free trade port features, further promoting new momentum, new advantages and new vitality in Hainan FTP.
Here, I would also like to express my sincere gratitude to the media for your attention, interest and support for the development of Hainan FTP and the high-quality development of Hainan. Thank you.
Shou Xiaoli:
Thank you, all the speakers and the media. Today's briefing is hereby concluded. Goodbye.
Translated and edited by Xu Xiaoxuan, Yan Xiaoqing, Xu Kailin, Wang Xingguang, Gong Yingchun, Liu Caiyi, Liu Sitong, Mi Xingang, Wang Yiming, Yuan Fang, Zhang Junmian, Huang Shan, Li Huiru, Zhang Rui, Wang Qian, David Ball, Tudor Finneran, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.
