Hainan to Launch Closed Customs Operations for Free Trade Port
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Haikou port in Hainan province on Dec. 17, 2025.
Hainan will begin “closed customs operations” for its free trade port on Dec. 18, marking a milestone in China’s experiment with deeper financial and trade liberalization.
In customs terms, “closed operations” mean the entire island will function as a special customs-supervised zone, operating under the principle of “opening the first line and managing the second line.” Goods, capital and people can move freely between Hainan and overseas markets, while flows between Hainan and the rest of China remain subject to standard customs controls and taxes.
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- Hainan will launch “closed customs operations” for its free trade port on Dec. 18, making the island a special customs zone with freer global flows and tighter mainland controls.
- As of October 2025, 658 EF accounts had processed 268.9 billion yuan ($38.2 billion) in transactions, supporting streamlined cross-border finance for 10,000 companies.
- Reforms and pilot programs have boosted Hainan’s foreign-related receipts/payments to $108.6 billion by the end of 2024, nearly three times 2021 levels.
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What Happened When
- June 2020：
- Beijing unveiled the master plan for the Hainan Free Trade Port, laying out a roadmap for trade and investment liberalization.
- 2022：
- The Yangpu Economic Development Zone was approved as one of four national pilot areas for high-level opening of cross-border trade and investment.
- February 2024：
- Regulators expanded Yangpu’s pilot policies to cover the entire island of Hainan.
- May 6, 2024：
- EF account system officially went live in Hainan.
- By the end of 2024：
- Hainan’s foreign-related receipts and payments reached $108.6 billion.
- In mid-October 2025：
- Two private fund pilot products completed subscriptions from overseas investors, marking the first successful cross-border fund flows under the program.
- By the end of October 2025：
- 11 banks in Hainan had launched EF account services; 658 EF accounts were opened; Hainan branch of PBOC had approved initial applications totaling 5 billion yuan from four institutions; nearly 10,000 companies registered for foreign exchange trade in Hainan.
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