Hainan Free Trade Port Law Implementation Shows Positive Results: Report
Dragon Media News Desk
The implementation of China’s Hainan Free Trade Port Law has produced positive results, according to a report submitted on Tuesday to the 25th session of the Standing Committee of the 14th National People’s Congress. The report said island-wide special customs operations were progressing steadily.
The report said Hainan’s role in promoting openness and cooperation had become increasingly evident, with its demonstration effect continuing to grow. It also noted improvements in the law-based business environment and the establishment of an initial policy and institutional framework.
Hainan formulated a plan for supporting regulations for the 2021–2025 period and introduced 60 regulations, including measures on intellectual property protection and fair competition. The province established an intellectual property court and an international commercial dispute resolution centre. It has also advanced reforms in ad hoc arbitration and commercial mediation, and created a one-stop dispute resolution mechanism combining mediation, arbitration and litigation.
The report acknowledged that challenges remain in implementing the law and in advancing trade liberalisation and facilitation. It recommended action in four areas: improving the policy and institutional framework, expanding the benefits of fiscal and tax reforms, improving the business environment, and strengthening institutional safeguards.
China adopted the Hainan Free Trade Port Law in June 2021. The law prioritises the liberalisation and facilitation of trade and investment. It also provides for the free, orderly, safe and convenient cross-border movement of production factors, a modern industrial system, special tax arrangements, efficient social governance and a comprehensive legal framework.
China launched special customs operations across Hainan on December 18, 2025. The share of tariff lines eligible for zero-tariff treatment on qualifying imports rose from 21 percent to 74 percent. Goods shipped from Hainan to mainland China remain subject to separate customs controls.
