Private firms prepare for new era of Customs in Hainan

With just under 100 days to go until Dec 18, when Customs operations at the Hainan Free Trade Port will be completely independent island-wide, Hainan is witnessing a surge of interest from leading private enterprises.

Prominent business leaders, including Yu Minhong, chairman of New Oriental, Liu Yonghao, chairman of New Hope Group, Li Shufu, chairman of Geely, alongside executives from tech giants like Huawei and Unitree Robotics, have recently led delegations to the island to explore opportunities and negotiate collaborations with local companies.

"Choosing Hainan is choosing opportunity, and investing in Hainan is investing in the future" has become the defining principle of this critical countdown phase, experts said.

Yu of New Oriental has visited Hainan four times this year, accumulating over 25 days on the island. He said that New Oriental's training center for students who have studied abroad, located in Lingshui Li autonomous county, is expected to commence operations by the end of this year. The center will provide comprehensive project services and entrepreneurial support for returning overseas students and start-up founders.

This wave of investment is materializing into concrete projects. Recent weeks have seen the signing of over 40 key agreements, covering sectors such as biopharmaceuticals, high-end manufacturing, the digital economy, tropical agriculture and aerospace technology. Each project signifies deeper industrial chain integration and upgrading, demonstrating the active participation of private enterprises in the Hainan Free Trade Port's development.

"We are further deepening cooperation with leading companies in Hainan's characteristic breeding and green food processing sectors," said Liu of New Hope. The group is co-building the "Haiken New Hope" brand with Hainan State Farms Investment Holding Group Co Ltd, also known as Haiken Group.

Customs operations at the Hainan Free Trade Port will be completely independent island-wide from Dec 18. "This is a signature project of the Hainan Free Trade Port construction and will provide a rare development opportunity for the growth of the private economy," stated Li of Geely.

The vitality of the private economy is already a cornerstone of Hainan's development. As of the end of June, Hainan province is home to more than 3.6 million private market entities, accounting for 97.54 percent of all market entities in the province. Among these, 937,200 are private enterprises. These entities contribute approximately 61 percent of the province's GDP and provide nearly 90 percent of its jobs, making them an indispensable force driving the FTP's growth, according to official data.

Yu Tao, a researcher at the National Institute for South China Sea Studies in Haikou, Hainan province, said the island-wide independent Customs operation will preserve the Hainan FTP's close economic ties with the Chinese mainland and support the development of a unified national market.

The new policy, approved by China's finance, Customs and tax authorities, will exempt about 6,600 product categories — 74 percent of all taxable items — from import duties, value-added tax and consumption tax, up from the current 1,900 in Hainan. Goods imported by eligible entities from abroad, except those on a restricted list, will qualify for the exemptions.