Hainan readies for role as free trade flag bearer

Foreign and Chinese companies are already scrambling to explore vast opportunities on Hainan, as the island province is poised to officially begin its special customs operations next month.

Hainan Free Trade Port will implement major favorable tariff policies from Dec 18, with the proportion of products eligible for zero tariffs rising sharply from 21 percent to 74 percent.

International organizations, company executives and experts have highlighted the importance of the changes amid rising trade protectionism, saying that it fosters free trade, reinforces economic globalization, and offers a "Chinese solution "to the world.

Chinese business leaders, including Yu Minhong, chairman of New Oriental Education and Technology Group, Liu Yonghao, chairman of animal husbandry enterprise New Hope Group, and Li Shufu, chairman of automaker Geely, recently led delegations to Hainan to explore potential opportunities and negotiate collaborations with local companies.

They have been joined by executives from tech giants such as Huawei and Unitree Robotics.

In recent weeks, over 40 key agreements have been inked, 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.

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

Liu of New Hope said his company is deepening cooperation with leading companies in Hainan's breeding and green food processing sectors. They are also jointly establishing the Haiken New Hope brand with Hainan State Farms Investment Holding Group.

Geely's Li said, "Launching a special customs operation is a signature project of the Hainan Free Trade Port, and will provide a rare development opportunity for the growth of the private economy."