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China Launches Hainan Free-Trade Port, Separates Island for Customs

Beijing casts the pilot as proof of high-standard openness to bolster a CPTPP bid.

Overview

  • Goods with at least 30% local value added can move into the mainland without tariffs.
  • The pilot lets foreign companies enter service areas that remain off-limits elsewhere in China.
  • Xinhua describes the port as a gateway to a new era of opening that will boost free trade.
  • Some CPTPP negotiators and a Western diplomat say accession would require nationwide reforms and a track record of compliance.
  • Economists see a managed liberalisation push to revive investment after FDI fell 10.4% in the first three quarters of 2025, yet they note Hainan’s small $113 billion economy and weaker legal-financial framework than Hong Kong.