Hainan Free Trade Port 2025: Customs Closure and Opportunities for Foreign Investors

The customs closure provides significant advantages for foreign investors. About 74 percent of product categories will be eligible for zero tariffs, allowing goods to enter Hainan duty-free for storage, display, or distribution, with taxes only applied when products move into mainland China. This reduces customs costs and capital tied up in inventory. Companies conducting substantial operations benefit from a 15 percent corporate tax rate, while high-level talent enjoys exemptions on the portion of personal income tax above 15 percent. Hainan also allows more flexible import access and broader foreign investment opportunities, opening sectors that are restricted in mainland China and increasing operational freedom for foreign companies.

Hainan offers unique advantages for multiple industries. International brands and duty-free retailers can import products duty-free, showcase them at events such as the Consumer Expo, or sell through duty-free shops, increasing brand exposure while avoiding high mainland tariffs. Value-added manufacturers can import raw materials and components duty-free, and if the product’s value-added exceeds 30 percent, goods can enter the mainland without import duties. Electronics assembly, jewelry manufacturing, and automotive parts industries are especially well-positioned. Hainan also functions as a regional logistics and distribution center, enabling companies to store goods duty-free and distribute flexibly to mainland China or Southeast Asian markets, reducing supply chain costs. For cross-border e-commerce and fast-moving consumer goods, Hainan’s bonded warehouses and simplified customs clearance shorten delivery times and lower costs, while the island serves as a regional logistics hub for Southeast Asia.

To help foreign companies succeed in Hainan, we provide comprehensive support including company setup and legal registration, tax consulting and accounting, and business strategy and market entry advisory. Our experts guide investors through Hainan’s regulatory framework, optimize tax structures, and design market entry strategies tailored to each industry. Whether establishing a new operation, expanding a product line, or navigating customs procedures, our services ensure a smooth and efficient investment process in Hainan Free Trade Port.

Hainan covers an entire island, allowing simultaneous development of tourism, high-tech industries, modern services, trade, and logistics. Its proximity to mainland China provides access to a market of 1.4 billion consumers. As a pilot zone, Hainan can implement institutional reforms, including tax simplification and sector liberalization in education, telecommunications, and healthcare. Strategically located between Southeast Asia and the Greater Bay Area, Hainan can serve as a key trade and logistics hub under the Belt and Road Initiative and RCEP, creating opportunities for regional integration and cooperation.

With the full customs closure, Hainan Free Trade Port 2025 becomes significantly more attractive to foreign investors. Benefits include reduced customs and tax costs, flexible supply chains, easy access to the Chinese market, and a platform for innovative business models such as duty-free retail and cross-border e-commerce. Our services in company setup, tax consulting, and market entry strategy help investors fully leverage Hainan’s advantages, ensuring a smooth market entry and long-term success. Hainan is positioned to become a leading Free Trade Zone China and a crucial link in regional and global supply chains.