A foreign vessel carrying 179,000 metric tons of petrochemical raw materials berths at Yangpu Port in Danzhou, Hainan province, on Thursday, following the official launch of the island-wide special customs operations in the Hainan Free Trade Port. GUO CHENG/XINHUA
As a colossal bulk carrier ship laden with 179,000 metric tons of petrochemical raw materials eased alongside the dock on Thursday morning, a clear announcement echoed across the port: "The Yangpu Maritime Safety Administration welcomes your vessel to the Hainan Free Trade Port."
The vessel was delivering the first shipment of zero-tariff imported goods as China launched island-wide special customs operations at the Hainan FTP, the world's largest by area.
Around the same time, at Haikou Meilan International Airport's cargo terminal, 3,300 boxes of locally produced chocolate, achieving at least 30 percent value-added processing on the island, began the journey north to Beijing and Hanzhong, Shaanxi province, as the first shipment of duty-exempt goods.
The initiative on the island will promote freer entry of overseas goods, zero-tariff expansion and a pro-business climate.
Customs officials inspect and clear the first batch of zero-tariff imported goods on Thursday at Sanya Phoenix International Airport in Sanya, Hainan province. ZHAO YINGQUAN/XINHUA
It underscores the country's determination to advance high-standard opening-up and turn China's super-sized market into a stronger magnet for global trade and investment, despite rising protectionism worldwide, senior officials and business leaders said.
Vice-Premier He Lifeng said that it is essential to seize the opportunity presented by the special customs operations to persistently deepen reforms in key areas, solidly promote high-quality development and continually improve the risk prevention and control framework.
The goal is to shape the Hainan FTP into a pivotal gateway that leads China's new round of opening-up in the new era, the vice-premier said at the launch ceremony in Haikou, Hainan province, on Thursday, which also marked the 47th anniversary of the initiation of China's reform and opening-up policy.
China released a master plan in June 2020 to build Hainan into a globally influential, high-level free trade port by the middle of the century, and it is a significant move by the country's top leadership to support the construction of the Hainan FTP system with Chinese characteristics.
The special customs operations are built on a framework of "freer access at the first line, regulated access at the second line, and free circulation within the island".
Trucks carrying the first batch of goods that completed customs clearance to enter China's mainland are seen on Thursday at a centralized inspection area for Xinhai Port and Nangang Port in Haikou, Hainan province. JIANG JURONG/FOR CHINA DAILY
The "first line" allows for freer access between Hainan and regions outside China's customs territory. The proportion of zero-tariff product lines has now surged from 21 percent to 74 percent, covering about 6,600 items.
The "second line" maintains regulated access with standard customs controls for goods entering China's mainland from Hainan, while a key incentive allows goods produced in Hainan, or those using imported materials with at least 30 percent value-added processing on the island, to enter the mainland exempt from import tariffs.
Businesses promptly acted to harness the new policy advantages, aiming to drive growth and enhance competitiveness.
Siemens Energy became the first foreign-invested enterprise to register, receiving its business license in Danzhou, Hainan.
"With the free trade port option, we have the chance to optimize our logistic processes and to reduce administration effort and make everything faster," said Lars Voelker, general manager of Siemens Energy (Hainan).
The company simultaneously broke ground on a new gas turbine assembly base and service center. The facility, scheduled for completion in 2027, is designed to create an integrated business system covering assembly, validation and maintenance for domestic and overseas markets.
Zhang Xiangchen, deputy director-general of the World Trade Organization, said, "This initiative brings tangible policy dividends, but we place greater value on its role in driving systemic innovation.
"These opening-up measures are not isolated adjustments, but interconnected measures spanning trade, taxation and financial services," Zhang said. "The island serves as a testing ground. It allows us to identify potential issues and make adjustments, thereby reducing risks when scaling reforms nationwide."
More important, amid a wave of de-globalization around the world, China continues to advance its opening-up, optimizing the business environment for global investment and contributing to fostering an open world economy, he added.
Analysts also noted that the island's unique geographic and policy profile makes it a critical nexus designed to strengthen China's role as a linchpin of regional trade and investment.
Positioned at the geographic heart of the Regional Comprehensive Economic Partnership, the world's largest trade group to date, Hainan is being groomed as a critical conduit for closer economic ties with participating economies, particularly the Association of Southeast Asian Nations, said Chi Fulin, president of the China Institute for Reform and Development.
In the past five years, the RCEP contributed three times as much to global economic growth as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the European Union combined, according to Chi.
For ASEAN exporters, Hainan will be a low-tariff entry point into the vast Chinese consumer market. For manufacturers and service providers operating on the island, it is a potential springboard into RCEP markets, with supportive logistics and financial services, Chi said.
Zhu Jianmin, chairman of Oxiranchem Group, highlighted the efficiency of Hainan's business environment. Despite challenges, the company had completed and put into operation in Hainan its Yangpu International Container Port-based project by the end of 2023.
"The Hainan FTP's tax policies, unique geographic location and logistics advantages have enabled us to source raw materials globally and target ASEAN markets effectively," Zhu said.
Contact the writers at wangkeju@chinadaily.com.cn
