Opening of new gateway can help foster global economic and trade cooperation: China Daily editorial

The Hainan Free Trade Port launches island-wide special customs operations on Thursday. This can expand the country's high-standard opening-up and generate new opportunities for economic and trade cooperation between China and other countries.

After the official launch, the island will implement a special supervision model of "freer access at the first line, regulated access at the second line, and free flow within the island". This will enable freer trade between Hainan and areas outside China's customs border, while maintaining standard customs controls for China's mainland.

This institutional design positions Hainan as a key connector with the global market, as it envisions the free trade port being a primary gateway for global goods to enter the Chinese market, and it is expected to become a new engine boosting regional economic and trade collaboration.

Supported by simplified customs clearance procedures and a zero-tariff policy for 74 percent of imported goods — a percentage that is anticipated will rise in the future — the port will help improve cross-border trade efficiency.

Over the past five years, Hainan has attracted investment from 176 countries and regions, and utilized actual foreign investment of 102.5 billion yuan ($14.47 billion), with an average annual growth rate of 14.6 percent. This trend is expected to gain further momentum with the island's special customs operations. The island will continue its opening-up to foreign investment in tourism, modern services and new and high technology. And eligible enterprises and talent will be able to enjoy preferential income tax rates.

Against the current international backdrop of rising protectionism, Hainan FTP's special customs operations demonstrate China's firm determination to expand its high-standard opening-up.

And the world needs an open China, as the country's opening-up contributes to a more inclusive, prosperous and sustainable world.

The 15th Five-Year Plan (2026-30) period will see China take steady steps to advance its opening-up at the institutional level, which will mean greater openness in its rules, regulations, management and standards. The country's pilot free trade zones and the Hainan FTP will serve as testing grounds for such reforms.

Accelerating the establishment of an institutional system in line with international standards, Hainan FTP will strengthen intellectual property rights protection, innovate commercial dispute resolution mechanisms and create a stable, transparent and predictable business environment through measures such as those to improve the rule of law, simplify administrative procedures and promote cross-border capital flows. These institutional innovations will be conducive to elevating China's cooperation with the world.

The just-concluded Central Economic Work Conference underscored "the need to steadily advance institutional opening-up, expand self-initiated opening-up in the service sector in an orderly manner, and make solid progress in developing the Hainan FTP".

Achieving the targets for the development of the Hainan FTP requires close coordination, proactive actions and sustained efforts. Tailored efforts need to be made in the Hainan FTP to steadily expand institutional opening-up, further advance trade and investment liberalization and facilitation, and better facilitate the cross-border flow of production factors.

The Hainan FTP is also expected to take a key role in advancing high-standard opening-up through strengthening coordinated development with the Guangdong-Hong Kong-Macao Greater Bay Area, deepening interregional cooperation with the Beijing-Tianjin-Hebei region, the Yangtze River Delta and the Yangtze River Economic Belt, and integrating into Belt and Road cooperation.

In short, the special customs operations of the Hainan FTP are far more than a technical adjustment to customs supervision. Rather, they are the testing ground for greater openness and institutional innovation.

With the launch of the special customs operations of Hainan FTP, China has an important gateway to bolster cooperation across the globe, and to provide fresh impetus for the development of an open world economy.