Hainan Will Seal Its Borders! Here's All You Need to Know

Big changes are underway in Hainan—and they’re designed to make everyday life smoother for residents, expats, and businesses alike.

China’s Hainan Free Trade Port will officially launch island-wide independent customs operation on December 18, 2025, completing its transition into a full-fledged Free Trade Port.

This means easier trade, simplified rules, and a lifestyle more in tune with global norms.

What Does It Really Mean?

Image via PR Newswire

Think of it this way: Hainan will soon operate with its own set of customs rules, separate from the rest of the Chinese mainland.

Goods entering the island will be treated as imports, and anything leaving for the mainland goes through what’s called a ‘second-line’ customs check.

For those living and working in Hainan, this new setup will simplify how goods move and open up new opportunities for shopping, business, and investment.

Changes You’ll Notice

China Duty Free Mall in Sanya. Image via CDF Mall

One of the most visible changes will be the updated ‘zero-tariff’ list.

It will cover around 6,600 tariff items.

This new scope accounts for 74% of all product categories, up 53 percentage points from before.

That means more foreign goods, especially consumer electronics, health products, and food, can enter Hainan at competitive prices.

Another game changer is the ‘negative list’ system.

Instead of listing what’s allowed, this approach outlines only what’s off-limits, giving businesses and individuals more room to operate freely.

This shift, along with streamlined customs procedures, will create a more predictable and international-friendly environment.

If you’re an expat entrepreneur or freelancer, there’s more good news.

Income tax incentives will be more attractive: eligible enterprises and qualified individuals will enjoy a 15% income tax rate, far below the national average.

Upon implementation, these policies will contribute to savings of over RMB310 billion for enterprises and RMB170 billion for individuals.

Goods produced or processed within the island will circulate freely between beneficiaries without paying import duties.

And if a product’s value increases by 30% through local processing, it can even be shipped to the mainland duty-free.

While it may take some getting used to, these changes bring greater clarity and alignment with global trade standards.

In turn, they make it easier for people, whether moving goods, setting up shops, or just managing daily life to navigate Hainan with confidence.

This transition will represent a rethinking of how Hainan fits into the global economy.

By easing customs processes, aligning with international norms, and encouraging a business-friendly atmosphere, the island is shaping up to be a hub for global citizens in China.

Whether you’re an investor, entrepreneur, or just someone looking for a sunnier, simpler lifestyle, life in Hainan will only get easier.

Visa-Free Travel

For short-term visitors, things are already much easier: Hainan will allow citizens of 85 countries to enter visa-free under various schemes.

Visitors can enter for business, tourism, family visits, or transit without applying for a traditional visa:

Hainan Free Trade Port, first unveiled in 2020, is now entering its critically transformative phase.

Will it become Asia’s next global free trade hub?

Stay tuned and follow ThatsGBA on WeChat for policy updates, travel tips, and cross-border insights!

[Cover image via Sanya Tourism Office/WeChat]