Hainan Free Trade Port's full island closure has landed as scheduled, and high-level opening has entered a new stage - the butterfly transformation of the closure

The closure of the entire island is a major event in the construction of Hainan Free Trade Port and even in China's process of opening up to the outside world. The first batch of "zero tariff" goods at the Sanya Phoenix Airport port were verified and released, 10 tons of Hawaiian nuts were released from the "second-line port" of Basuo Port to the mainland, and "zero tariff" petrochemical raw materials arrived at Yangpu Port... On December 18, 2025, the entire island of Hainan Free Trade Port was closed as scheduled, and high-level opening entered a new stage.

How does the closure of Hainan Island operate? What changes have occurred in the regulatory approach? What benefits can market entities obtain? Before and after the lockdown, reporters conducted interviews in multiple places in Hainan.

The "first line" and "second line" each play their respective roles, creating a highly open space

In winter, Sanya has a gentle sea breeze and sparkling waves. At the Half Mountain Peninsula Sailing Port in Sanya, sailboats, water motorcycles, and yachts occasionally arrive and depart. In the view of Chen Xiaoyu, the General Manager of the Sailing Port Operation Center, the closure of Hainan Island is of great significance.

Hainan has abundant tourism resources, and the usage scenarios of tourism ships such as sailboats and yachts are very diverse. After the opening of the 'first line' policy, policies such as zero tariffs, no guarantee entry, and single window declaration will significantly reduce the purchase and operation costs of tourism ships in Hainan, attract more foreign ships to settle in Hainan, and promote more maritime consumption to flow into Hainan. "Chen Xiaoyu said that currently there are over 300 berths in the Half Mountain Peninsula Sailing Port, and the main channel draft can reach 8 meters, providing a series of services such as berthing, maintenance, and supply. After the closure of the entire island, the Half Mountain Peninsula Sailing Port also began planning to expand more berths.

If the 'first line' is relaxed, the 'second line' must be controlled.

According to the relevant person in charge of Haikou Customs, the operation of customs closure refers to the implementation of a regulatory system in Hainan Island as a special customs supervision area, with the basic characteristics of "opening up the first line, controlling the second line, and allowing freedom within the island". 'Opening up the front line' means treating Hainan Free Trade Port as a 'front line' with other countries and regions outside China's customs territory, and implementing a series of free and convenient entry and exit measures; 'Second line management' refers to treating the relationship between Hainan Free Trade Port and the mainland as a 'second line' and implementing precise management for the goods that have been opened up on the 'first line'. In the highly open space jointly created by 8 open ports and 10 "second tier ports", various elements can flow relatively freely, that is, "island freedom".

At the centralized inspection sites of Haikou New Port and Nangang's "second-line ports" (freight), 16 channels are arranged in sequence, and advanced H986 machine inspection equipment has been put into operation. Weng Yuzhong, the director of Haikou Port Customs, told reporters that whether it is "zero tariff" goods, goods that enjoy the policy of processing value-added without tariffs, or domestic circulation goods transported from Hainan Island to the mainland, corresponding routes can be easily found here.

This place is relatively close to the mainland in terms of straight-line distance and is also the main 'second-line port' for freight transportation out of the island after the closure of the entire island. During the initial closure period, the daily traffic flow here was about 2000 vehicles, with an average of about 1 minute for each truck to pass through the security checkpoint and about 1 minute and 50 seconds to pass through the customs checkpoint. Weng Yuzhong said that if there is a peak in traffic flow in the future, relevant departments will effectively divert and divert traffic by adding passage channels and other means.

Zero tariffs, low tax rates, and simplified tax systems promote the development of characteristic industries

Entering the one-stop aircraft maintenance industry base of Hainan Free Trade Port, the sounds of various electrical equipment operations are intertwined and woven into a unique melody. In the maintenance workshop, 9 aircraft undergoing repairs are arranged in a staggered manner for various "physical examinations" and "maintenance".

In addition to domestic airlines, there are also aircraft from Vietnam, Thailand, Cambodia, Jordan and other places undergoing maintenance here. Our scheduled orders for 2026 are already saturated! "Long Wentao, the head of investment business at Haikou Airport Aircraft Maintenance Engineering Co., Ltd., is full of confidence.

What advantages does the island wide lockdown bring to the development of aircraft bonded maintenance business in Hainan?

The reporter learned during the interview that Hainan has a small land area, but it is an undisputed aviation province. By 2025, the passenger throughput of the three major airports on the island is expected to exceed 50 million people.

Starting from Hainan Island, a 4-hour flight can cover nearly half of the world's population. If airlines within this radius choose Hainan as their aircraft maintenance base for repairs, they will save more costs than choosing regions such as Europe and America. In addition, Hainan Free Trade Port's import of aviation materials enjoys zero tariff benefits, a maximum of 15% corporate and personal income tax, and the opening of the seventh freedom rights policy, all of which have a huge supporting effect on the development of aircraft bonded maintenance business. Currently, compared with surrounding areas, aircraft bonded maintenance in Hainan has a cost advantage of 10% to 15%, "said Long Wentao.

Data shows that after the island wide customs operation, the scope of "zero tariff" goods will expand from 1900 tax items to about 6600 tax items, accounting for about 74% of all commodity tax items, an increase of nearly 53 percentage points compared to before the customs operation. The advantages of Hainan, such as fewer restrictions, simpler tax system, faster customs clearance, and more friends, are largely due to its openness.

Taking the opening of seventh freedom rights as an example, allowing foreign airlines to operate passenger or cargo services unrelated to the country on its territory is a significant opening measure. In Long Wentao's view, this is an invitation to airlines from all over the world to settle down in Hainan, using Hainan as a base to operate the entire Asia Pacific region and even a larger range of route networks.

Accumulated investment of over 500 million yuan in base equipment procurement, saving over 80 million yuan in tariffs; From 2022 to 2024, the proportion of international aircraft maintenance business increased from 0.9% to 24.6%, and the proportion of international aviation spraying business increased from 13% to 50%; At present, it has obtained 25 aviation maintenance licenses and OEM authorizations from 18 countries and regions including South Korea, Qatar, Singapore, etc. These sets of data demonstrate the vitality of this industrial base and outline the bright prospects of Hainan's aircraft bonded maintenance industry.

Domestic sales with a processing value-added of over 30% are exempt from tariffs, better embracing the "two markets"

The closure of the entire island has brought benefits to Hainan's tourism industry, modern service industry, and tropical efficient agriculture, while also opening up opportunities for the development of Hainan's characteristic processing and manufacturing industry.

As noon approached, the operating speed of the machines on the packaging production line of Hainan Auska International Grain and Oil Co., Ltd. began to decrease. Several workers rushed to inspect and debug the equipment before lunch, in preparation for the afternoon's full power.

Our company's total output value will exceed 4.8 billion yuan in 2023, about 5.9 billion yuan in 2024, and strive to reach 7 billion yuan this year. This is largely due to the pioneering policies, unique location advantages, and favorable business environment of Hainan Free Trade Port, "said Zhang Hui, the chairman of the company.

As of November 2025, there are 129 pilot enterprises in Hainan for value-added processing and tariff exemption, with a cumulative domestic sales value exceeding 10 billion yuan. After the closure and operation of Hainan Free Trade Port, enterprises can enjoy greater policy benefits. The tax incentives enjoyed by Auska Grain and Oil in Hainan Free Trade Port are mainly reflected in two aspects: first, the exemption of import tariffs, import value-added tax, and consumption tax for goods outside the list of taxable goods entering the free trade port; Secondly, goods with a processing value exceeding 30% (inclusive) are exempt from import tariffs when entering the mainland through "second tier" channels. At the same time, within the Hainan Free Trade Port, customs implement low intervention and efficient precise supervision of "zero tariff" goods, helping enterprises better enjoy policy dividends.

Zhang Hui told reporters that these institutional designs enable companies to better embrace both domestic and international markets.

We import rapeseed and soybeans from Brazil and other places, and process them into rapeseed oil, rapeseed meal, soybean oil, and other products for sale in mainland China. During the preparation and testing period for customs clearance, we gradually enjoyed policy pilot programs. In the past five years, Auska Grain and Oil has enjoyed a cumulative tariff reduction of nearly 300 million yuan, which has given us more resources to invest in scientific and technological innovation and new product research and development. Currently, considering the low processing value-added rate of a single link in the grain and oil industry, relevant departments are also accelerating the optimization of policy details, striving to calculate the processing value-added rate of grain and oil products based on the cumulative value of upstream and downstream enterprises within a certain range, so as to ensure that more market entities can accurately enjoy benefits after customs clearance operation, "said Zhang Hui.

In the international market, Auska Grain and Oil actively seizes the business opportunities brought by the island wide closure operation. The reporter learned that starting from August 2025, Zhang Hui and her colleagues began exploring the export processing business with both ends outside. Over the past few months, the "incoming materials processing export" business has developed rapidly, and the company has opened up surrounding markets such as Vietnam, Indonesia, and Malaysia, while also exploring markets in Australia and the European Union.

Hainan Island, especially Yangpu Port Area, has a very obvious advantage in terms of location. It is backed by the large domestic market and has convenient shipping conditions. The opening dividends brought by the closure of the entire island are real, providing a broader stage for us to 'buy globally and sell globally'. We expect that by 2026, the import volume, export volume, domestic sales volume, total output value, etc. are expected to reach a new level! "Said Zhang Hui.

Strengthen the biosecurity defense line at the national border and promote the development of modern agriculture

The construction of a special customs supervision area for island wide customs operation requires effective supervision.

For customs and other regulatory departments, the opening up of the "front line" is not just about letting go as a "hands off shopkeeper", but about strengthening safety access (exit) supervision in the "front line" entry (exit) process, safeguarding port public health safety, national biological safety, food safety, and product quality safety. We focus on the business scenarios after customs closure, refine and formulate more than 200 risk prevention and control measures, use new technologies to build a risk warning model, and achieve intelligent risk prevention and control throughout the entire chain, "said Gao Ruifeng, the director of Haikou Customs.

Effective supervision cannot be achieved without a series of software and hardware support. At the mouth of Ningyuan River in Yazhou Bay, Sanya City, about 450 meters away from the shore, there is a small island resembling a moon. The Haikou Customs Animal and Plant Quarantine Center has set up negative pressure plant isolation nurseries, isolation quarantine nurseries, quarantine laboratories and other work areas on Moon Island, ensuring the biological safety of the country through geographical and facility isolation.

Guarding national security mainly includes source control before entry, quarantine inspection during entry, and follow-up supervision after entry. We have the most advanced equipment, flexible mechanism, advanced technology, and standardized management in the world, especially in tropical plant isolation and quarantine, animal disease testing, genetically modified testing, etc. We have obvious advantages in inspecting more than 400 projects, "said Liu Fuxiu, director of the Haikou Customs Animal and Plant Quarantine Center. After the island is closed, the number of people and goods entering and leaving Hainan will continue to increase, and we and our colleagues are fully prepared.

From January to November 2025, Haikou Customs supervised 5880 batches of imported animals, plants, and their products, with a total value of 13.975 billion yuan, an increase of 26.72% and 39.14% year-on-year, respectively. A total of 903 harmful organisms and 43 invasive species were intercepted. While safeguarding national security, customs quarantine work also creates conditions for better research on animal and plant germplasm resources.

Chen Hao, Minister of the Intellectual Property Department (Innovation Cooperation Department) of the Yazhou Bay Science and Technology City Management Bureau in Sanya, said that "leveraging the advantages of the national southern breeding research and breeding base, building a global tropical agriculture center and a global animal and plant germplasm resource introduction and transit base" is an important part of the construction of Hainan Free Trade Port. In addition to Moon Island, Yazhou Bay Science and Technology City has also concentrated many infrastructure related to the introduction and transit base of global animal and plant germplasm resources in the surrounding area, with the aim of fully utilizing the advantage of customs quarantine "extensive knowledge" after the island is closed, and promoting the development of modern agriculture.

In the past, many samples had to be sent to foreign laboratories for testing. Now, in order to adapt to the island wide lockdown operation, our own testing capabilities have greatly improved, and the convenience of scientific research and breeding has become increasingly prominent. For example, the Chinese Academy of Tropical Agricultural Sciences has cooperated with relevant institutions in Colombia to import a large amount of wild and cultivated cassava germplasm resources. Through precise phenotype identification, the construction of DNA molecular identity card libraries, and a globally integrated cassava germplasm resource exchange and sharing platform, we have bred higher quality cassava varieties. ”Chen Hao said.

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Coconut trees like to grow by the sea. Although they sometimes face the beating of waves and the swaying of strong winds, they also absorb the brightest sunlight and nutrients, giving birth to sweet and nutritious coconuts. In a sense, coconut trees are a vivid epitome of Hainan's strong and open development towards the sea. Standing at a new starting point of island wide closure, Hainan is striding confidently towards a new stage of development with higher levels of openness.