The State Council Information Office held a press conference to introduce the construction of Hainan Free Trade Port

The State Council Information Office held a press conference on Wednesday, July 23, 2025 at 10 a.m., inviting Wang Changlin, Deputy Director of the National Development and Reform Commission, Liao Min, Deputy Minister of Finance, Yuan Xiaoming, Assistant Minister of Commerce, Wang Lingjun, Deputy Director General of the General Administration of Customs, Feng Fei, Secretary of the Hainan Provincial Party Committee and Chairman of the Standing Committee of the Provincial People's Congress, and Liu Xiaoming, Deputy Secretary of the Hainan Provincial Party Committee and Governor, to introduce the construction of the Hainan Free Trade Port and answer questions from reporters.  

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Director of the News Bureau of the State Council Information Office and spokesperson Life Xiaoli:

Good morning, ladies and gentlemen! Welcome to the press conference of the State Council Information Office. Today, we are delighted to invite Mr. Feng Fei, Secretary of the Hainan Provincial Party Committee and Chairman of the Standing Committee of the Provincial People's Congress, Mr. Liu Xiaoming, Deputy Secretary of the Hainan Provincial Party Committee and Governor, Mr. Wang Changlin, Deputy Director of the National Development and Reform Commission, Mr. Liao Min, Deputy Minister of Finance, Mr. Yuan Xiaoming, Assistant Minister of Commerce, and Mr. Wang Lingjun, Deputy Director General of the General Administration of Customs, to introduce the construction of Hainan Free Trade Port and answer your concerns. Next, let's first invite Mr. Wang Changlin to give an introduction.

Wang Changlin, Deputy Director of the National Development and Reform Commission: Good morning, media friends! Supporting Hainan's exploration and construction of a free trade port with Chinese characteristics is a major measure of reform and opening up personally planned, deployed, and promoted by General Secretary Xi Jinping. In June 2020, the Central Committee of the Communist Party of China and the State Council officially released the "Overall Plan for the Construction of Hainan Free Trade Port".   Its main characteristics can be summarized as "4, 3, 2, 1". '4' refers to the convenience of the entry and exit of four types of elements: people flow, logistics, capital flow, and data flow. Personnel from a total of 85 countries can enter Hainan without a visa, and the total tonnage of international navigation vessels at the registered port of "China Yangpu Port" has jumped to the second highest in the country. Funds can be freely and conveniently transferred between multi-functional free trade accounts and overseas accounts in accordance with the law, and negative list management is implemented for data export. '3' refers to the accelerated opening up of the three major fields of goods trade, service trade, and investment. We have formulated a "zero tariff" policy for imported raw materials, transportation vehicles, yachts, and self use production equipment. The first negative list for cross-border service trade in China has been introduced and implemented, and 22 special measures to relax market access have been introduced. The degree of openness of the negative list for foreign investment access is the highest in the country. '2' refers to the continuous increase in tax incentives for both businesses and individuals. The introduction of the "Double 15%" preferential policy for corporate and personal income tax rates has resulted in cumulative tax reductions and exemptions exceeding 31 billion yuan and 17 billion yuan, respectively. The pilot scope of value-added tax exemption policy for processing has been expanded to the entire island. The tax-free shopping quota for outlying islands has been increased to 100000 yuan per person per year. '1' refers to the continuous improvement of the legal guarantee based on the Hainan Free Trade Port Law, a specialized law. Through legal means, various institutional arrangements for free trade ports have been clarified, and more than 40 supporting regulations have been introduced, effectively ensuring the implementation of reform and innovation measures. Overall, with the implementation of these policies and systems, the opening and development of Hainan Free Trade Port has progressed steadily and flourished, achieving important phased results and laying a solid foundation for launching the island wide customs operation. The operation of closing off the entire island is a landmark project in the construction of Hainan Free Trade Port, an important measure to further expand opening up, and has milestone significance. Customs closure refers to the establishment of a special customs supervision area on the entire island of Hainan, and the implementation of a liberalization and facilitation policy system characterized by "opening up the 'first line', controlling the 'second line', and allowing freedom within the island". Opening up the "front line" means treating Hainan Free Trade Port as a "front line" with other countries and regions outside China's customs territory, and implementing a series of free and convenient entry and exit measures; Controlling the 'second line' means treating the relationship between Hainan Free Trade Port and the mainland as a 'second line', and implementing precise management for the content that has been opened up in the 'first line'; Freedom within the island refers to the relatively free circulation of various factors within the Hainan Free Trade Port. So, sealing off is not about sealing off islands, but about further expanding opening up. After sealing off, Hainan's connection with the international community will be more convenient, which is of great significance for accelerating the attraction of high-quality global factors, promoting the high-quality development of Hainan Free Trade Port, and paving the way for national reform and opening up. According to the requirements of the overall plan on "establishing a policy and institutional system for free trade ports in steps and stages", combined with the actual development of Hainan, we have formulated the current customs clearance policy measures in conjunction with relevant parties, which can be summarized as "four more": firstly, implementing a more favorable "zero tariff" policy for goods. The proportion of "zero tariff" goods imported from the "first line" will be increased from 21% to 74%, allowing for duty-free circulation among beneficiaries on the island. Goods with a processing value-added of 30% can be sold to the mainland without tariffs. The second is to implement more relaxed trade management measures. Open arrangements will be made for some of the prohibited and restricted imported goods in the "frontline" import direction nationwide. The third is to implement more convenient transportation measures. Using the existing 8 open ports on the island as "first-line" ports, import goods that meet the conditions will be released directly; Set up and operate 10 "second tier ports" such as Haikou New Port and Haikou South Port, and take various convenient measures for the innovative passage of goods entering the mainland. The fourth is to implement a more efficient and precise regulatory model. Implement low intervention and efficient precise supervision on "zero tariff" goods, goods subject to relaxed trade management measures, etc., to ensure the smooth implementation of various opening-up policies. The relevant policy documents will be gradually released to the public later and will be implemented from the date of the island's closure. The specific time for the closure has been approved by the Central Committee of the Communist Party of China and is scheduled to officially start on December 18, 2025. On December 18, 1978, the Third Plenum of the Eleventh Central Committee of the Communist Party of China launched the great journey of reform, opening up, and socialist modernization. The launch of the closure operation on December 18th has significant symbolic significance and demonstrates to the world China's unwavering determination and confidence in expanding high-level opening-up. In the next few months, we will make urgent preparations to help business entities fully understand the customs clearance policy and conduct relevant business tests. The operation of closing off the entire island is the beginning of a new stage of opening up and development of Hainan Free Trade Port, and it is also a long-term and continuous task. Next, we will follow the decisions and arrangements of the Party Central Committee and the State Council, take the closure of the border as an opportunity, actively promote the implementation and effectiveness of various policies, and continuously expand the degree of openness according to the development needs of Hainan, continuously improve the policy and institutional system of the free trade port, accelerate the construction of a new open economic system, and strive to create an important gateway leading China's opening up to the outside world in the new era. Let me introduce these situations to everyone first, thank you! Shou Xiaoli: Thank you for Mr. Wang Changlin's introduction. Now let's invite Mr. Feng Fei to give an introduction.

Feng Fei (photo by Xu Xiang)
Feng Fei, Secretary of the Hainan Provincial Party Committee and Chairman of the Standing Committee of the Provincial People's Congress: Good morning, media friends, ladies and gentlemen! General Secretary Xi Jinping attaches great importance to the reform and opening up development of Hainan, and demands that we accelerate the construction of a Chinese style free trade port with global influence, and create an important gateway leading China's opening up to the outside world in the new era. At present, the construction of Hainan Free Trade Port has entered a new stage of formation and is about to close the entire island. The so-called "shape" that has taken shape and gained momentum refers to the preliminary establishment of the policy and institutional system of Hainan Free Trade Port, as introduced by Deputy Director Changlin just now. This' momentum 'is mainly reflected in the effectiveness and development trend of the preparatory work over the past five years. Firstly, the degree of openness is increasing, with actual use of foreign investment reaching 102.5 billion yuan, an average annual growth rate of 14.6%. Overseas direct investment reached 9.78 billion US dollars, with an average annual growth rate of 97%. 8098 foreign-funded enterprises were newly established, with an average annual growth rate of 43.7%. The average annual growth rates of goods trade and service trade are 31.3% and 32.3%, respectively. 176 countries and regions have invested in Hainan, and the economic outward orientation has increased to 35%. The visa free policy is the best in the country, with a total of 85 countries allowing visa free entry to Hainan. Secondly, the industrial system is becoming increasingly superior. The four leading industries of tourism, modern service industry, high-tech industry, and tropical characteristic efficient agriculture have increased by 13.7 percentage points in the past five years, accounting for 67% of the province's GDP. The development of new quality productivity is flourishing, and the output value of southern breeding industry has exceeded 18 billion yuan. The annual average growth rate of ocean gross domestic product is 13.9%, and the country's first commercial space launch site has been successfully built, with high-density and multi model launch capabilities. Offshore duty-free sales account for over 8% of the global duty-free market, and Boao Lecheng has basically achieved synchronization with international advanced levels in medical technology, equipment, and drugs. It has been approved for 18 Sino foreign cooperative education institution projects at or above the undergraduate level, and 2 independent education projects of high-level overseas universities. Thirdly, the development environment is getting better and better. The ecological environment quality of the air, rivers, lakes, and nearshore waters ranks first in the country, with a PM2.5 concentration of 12 micrograms per cubic meter. The proportion of clean energy generation and installed capacity exceeds 70% and 80% respectively. The penetration rate of new energy vehicles is 59.6%, ranking first in the country. The Boao Zero Carbon Demonstration Zone has achieved a carbon reduction rate of 99% and has been certified by authoritative institutions both domestically and internationally. The state has specially introduced the Hainan Free Trade Port Law, which provides stable expectations for domestic and foreign markets, establishes a one-stop international commercial dispute resolution mechanism that organically connects mediation, arbitration, and litigation, and ensures that enterprises have a promising investment prospect in Hainan and are fair to all. Fourthly, the sense of gain among the masses is becoming stronger and stronger. Learning at home and staying in the city for minor illnesses, and staying on the island for major illnesses are becoming a reality. The average life expectancy in Hainan has reached 80.5 years, with an increase of 530000 permanent residents in 5 years, making it one of the 8 provinces in China with a net inflow of permanent residents. Hainan is becoming a new frontier for China's opening up to the outside world, a new hotspot for mutually beneficial cooperation in the region, and a new engine for promoting economic globalization, laying a solid foundation for achieving closed door operations and expanding opening up. We have made serious preparations for expanding the opening up of the closed door operation in accordance with the central deployment. In terms of customs clearance policies, preparations have been made, including the list of prohibited and restricted imported goods for taxation, policies and supporting documents for duty-free processing and value-added domestic sales. The software and hardware conditions have been fully completed, and the customs clearance hardware facilities have passed national acceptance. Information systems such as the International Trade Single Window Customs Smart Supervision Platform have also been established. In terms of stress testing exercises, we will actively promote the full process, all elements, full coverage, large sample, and practical stress testing to ensure that it can be both "relaxed" and "managed". After 5 years of hard work, our hearts are more secure. Next, we will push forward vigorously according to the central deployment to ensure the smooth operation of the customs clearance as scheduled. thank you!

Feng Fei (photo by Xu Xiang)

Feng Fei, Secretary of the Hainan Provincial Party Committee and Chairman of the Standing Committee of the Provincial People's Congress: Good morning, media friends, ladies and gentlemen! General Secretary Xi Jinping attaches great importance to the reform and opening up development of Hainan, and demands that we accelerate the construction of a Chinese style free trade port with global influence, and create an important gateway leading China's opening up to the outside world in the new era. At present, the construction of Hainan Free Trade Port has entered a new stage of formation and is about to close the entire island. The so-called "shape" that has taken shape and gained momentum refers to the preliminary establishment of the policy and institutional system of Hainan Free Trade Port, as introduced by Deputy Director Changlin just now. This' momentum 'is mainly reflected in the effectiveness and development trend of the preparatory work over the past five years. Firstly, the degree of openness is increasing, with actual use of foreign investment reaching 102.5 billion yuan, an average annual growth rate of 14.6%. Overseas direct investment reached 9.78 billion US dollars, with an average annual growth rate of 97%. 8098 foreign-funded enterprises were newly established, with an average annual growth rate of 43.7%. The average annual growth rates of goods trade and service trade are 31.3% and 32.3%, respectively. 176 countries and regions have invested in Hainan, and the economic outward orientation has increased to 35%. The visa free policy is the best in the country, with a total of 85 countries allowing visa free entry to Hainan. Secondly, the industrial system is becoming increasingly superior. The four leading industries of tourism, modern service industry, high-tech industry, and tropical characteristic efficient agriculture have increased by 13.7 percentage points in the past five years, accounting for 67% of the province's GDP. The development of new quality productivity is flourishing, and the output value of southern breeding industry has exceeded 18 billion yuan. The annual average growth rate of ocean gross domestic product is 13.9%, and the country's first commercial space launch site has been successfully built, with high-density and multi model launch capabilities. Offshore duty-free sales account for over 8% of the global duty-free market, and Boao Lecheng has basically achieved synchronization with international advanced levels in medical technology, equipment, and drugs. It has been approved for 18 Sino foreign cooperative education institution projects at or above the undergraduate level, and 2 independent education projects of high-level overseas universities. Thirdly, the development environment is getting better and better. The ecological environment quality of the air, rivers, lakes, and nearshore waters ranks first in the country, with a PM2.5 concentration of 12 micrograms per cubic meter. The proportion of clean energy generation and installed capacity exceeds 70% and 80% respectively. The penetration rate of new energy vehicles is 59.6%, ranking first in the country. The Boao Zero Carbon Demonstration Zone has achieved a carbon reduction rate of 99% and has been certified by authoritative institutions both domestically and internationally. The state has specially introduced the Hainan Free Trade Port Law, which provides stable expectations for domestic and foreign markets, establishes a one-stop international commercial dispute resolution mechanism that organically connects mediation, arbitration, and litigation, and ensures that enterprises have a promising investment prospect in Hainan and are fair to all. Fourthly, the sense of gain among the masses is becoming stronger and stronger. Learning at home and staying in the city for minor illnesses, and staying on the island for major illnesses are becoming a reality. The average life expectancy in Hainan has reached 80.5 years, with an increase of 530000 permanent residents in 5 years, making it one of the 8 provinces in China with a net inflow of permanent residents. Hainan is becoming a new frontier for China's opening up to the outside world, a new hotspot for mutually beneficial cooperation in the region, and a new engine for promoting economic globalization, laying a solid foundation for achieving closed door operations and expanding opening up. We have made serious preparations for expanding the opening up of the closed door operation in accordance with the central deployment. In terms of customs clearance policies, preparations have been made, including the list of prohibited and restricted imported goods for taxation, policies and supporting documents for duty-free processing and value-added domestic sales. The software and hardware conditions have been fully completed, and the customs clearance hardware facilities have passed national acceptance. Information systems such as the International Trade Single Window Customs Smart Supervision Platform have also been established. In terms of stress testing exercises, we will actively promote the full process, all elements, full coverage, large sample, and practical stress testing to ensure that it can be both "relaxed" and "managed". After 5 years of hard work, our hearts are more secure. Next, we will push forward vigorously according to the central deployment to ensure the smooth operation of the customs clearance as scheduled. thank you!

Liao Min (Photo by Xu Xiang) Vice Minister of Finance Liao Min: Thank you for the journalist's question. The comrade who just released this question also introduced it. I will further elaborate from the perspective of finance. Zero tariff "is one of the main features of the policy and institutional system of Hainan Free Trade Port. In recent years, the Ministry of Finance has conscientiously implemented the decisions and deployments of the Party Central Committee and the State Council, combined with the actual situation in Hainan, and has also worked with relevant departments to successively introduce three "zero tariff" import policies for raw materials, transportation vehicles and yachts, as well as self use production equipment. So, in the early stage of practice, we have also accumulated a batch of phased achievements, injecting new energy into the high-level opening of Hainan Free Trade Port, and accumulating valuable experience for the next step of the island's closure operation and related management. In order to steadily promote the closure of Hainan Free Trade Port throughout the island, the Ministry of Finance has carefully summarized the relevant practical experience in the early stage, and also taken into account factors such as the construction progress, industrial situation, and regulatory software and hardware conditions of the free trade port. It has taken the lead in formulating tax policies for the import and export of goods on the "first line" and "second line" and for the circulation within the island, as well as a catalog of taxable goods imported from Hainan Free Trade Port. It is planned to be implemented from the date of the closure of the entire island. At that time, the existing "zero tariff" import policy will be included in the tax policy for goods after the closure, and the "zero tariff" import system of Hainan Free Trade Port will be basically established. After the closure, the tax policies for goods mainly include the following arrangements. Independent legal entities registered at the Hainan Free Trade Port, as well as eligible public institutions and private non enterprise units within the free trade port, are exempt from import taxes for goods outside the "first-line" import tax catalog. Goods with zero tariffs and their processed products can circulate between beneficiaries on the island without import taxes. For goods produced by enterprises that belong to the encouraged industries of Hainan Free Trade Port, when the processing value-added reaches or exceeds 30%, they will be exempt from import tariffs when entering the mainland through the "second tier". Compared with the policy before the customs operation, there are three obvious changes: firstly, the coverage of "zero tariff" goods has significantly increased. After the island wide lockdown operation, imported "zero tariff" goods will be subject to negative list management, and the previously positive list of "zero tariff" goods will be replaced by a list of imported taxable goods. The scope of "zero tariff" goods will be expanded from the current 1900 tax items to about 6600 tax items, accounting for about 74% of all commodity tax items, which is nearly 53 percentage points higher than before the customs clearance. So everyone can see that this significantly improves the scope and level of openness. Secondly, the scope of beneficiaries has also significantly expanded. At present, the "zero tariff" import policy only allows independent legal entities and institutions registered at Hainan Free Trade Port to be the beneficiaries. After the island is closed, the beneficiaries will basically cover various types of enterprises, institutions, and private non enterprise units with actual import needs throughout the island. The third is the further relaxation of policy restrictions. After the closure operation, imported "zero tariff" goods and their processed products are no longer limited to enterprise use, and can freely circulate among beneficiaries without paying import taxes. This is of positive significance for extending the island's industrial chain, enhancing industrial competitiveness, and forming an industrial cluster effect. Overall, the above policies are conducive to further reducing the production costs of market entities, stimulating market vitality, and significantly improving the level of liberalization and facilitation of goods trade in Hainan Free Trade Port. In the future, the Ministry of Finance will continue to track and understand the implementation of relevant policies, especially the sense of gain of market entities, and optimize and adjust policy content in a timely manner. It will also work with the Hainan Provincial Government to enhance services for market entities. At the same time, we will strengthen management and continuously promote the construction of Hainan Free Trade Port, including achieving new results in enhancing China's high-level opening-up to the outside world. This is my answer. thank you. CCTV reporter from China Central Radio and Television Station: We have learned that after the island is closed, a "second-line port" will be established for the passage of goods, items, personnel, and transportation vehicles between Hainan Free Trade Port and the mainland. It is understood that some companies and tourists are concerned about whether it will be inconvenient to enter and exit Hainan Island after the closure, such as whether a travel permit is required to travel to Hainan? Can you introduce the situation in this regard? thank you. Wang Changlin: You raised a very good question, and everyone is indeed quite concerned about the situation in this regard. As I mentioned earlier, the closure is for openness and development. To be precise, it refers to several key words: closure operation, expanding openness, and accelerating development. So, after the closure, Hainan's international exchanges will be smoother and more free, and its connections with the mainland will be more convenient and efficient. According to the current customs clearance system design, except for some goods that need to undergo inspection when entering the mainland from Hainan Free Trade Port, most goods and all personnel, items, transportation vehicles, etc. entering and leaving Hainan Island will still be managed according to current regulations, and there will be no changes before and after customs clearance. Everyone who goes on business trips or travels to Hainan Island does not need to apply for additional documents, just like now. For goods that require inspection, here is an introduction to everyone. In order to avoid the impact of opening measures implemented on the mainland market in the "first line", precise management is needed in the "second line", involving three main types of goods, including "zero tariff" goods, goods enjoying value-added processing policies, and goods subject to relaxed trade management measures. Next, in order to ensure the efficiency of customs clearance, the following measures will be taken: firstly, building a "one-stop customs clearance" model. Enterprises can declare the information of goods leaving the island in advance online, and customs, security and other departments can work together at the "second-line ports" and issue release instructions, achieving "one declaration, one inspection, and one stop release". The second is to implement a "forward push and backward shift" approach. Move the management measures such as testing of agricultural products and collection of tolls that were originally implemented within the port to areas outside the "second tier ports" to avoid congestion. The third is to strengthen intelligent supervision. Make full use of big data, artificial intelligence and other methods to strengthen the intelligent construction of customs, maritime, border inspection, port operation units, etc., and achieve information exchange and mutual recognition of supervision. The fourth is to strengthen credit management. Establish a credit grading and classification supervision service system, reduce inspection frequency for enterprises with higher credit ratings, and facilitate quick customs clearance. Overall, after the closure, Hainan Free Trade Port will continue to maintain convenient exchanges with the mainland. In the future, all types of entities, especially the vast number of tourists, will not only not be affected when entering and leaving Hainan Island, but will also enjoy better travel experiences and services. thank you. Elephant News reporter: The "Overall Plan for the Construction of Hainan Free Trade Port" and the "Hainan Free Trade Port Law" propose to formulate a "List of Prohibited and Restricted Import and Export Goods and Articles for Hainan Free Trade Port". Regarding this list, could you please introduce the specific situation. thank you.

 Yuan Xiaoming (photo by Xu Xiang) Assistant Minister of Commerce Yuan Xiaoming: Thank you for your question. As we all know, free and convenient trade is one of the five aspects of freedom and convenience in the policy and institutional design of Hainan Free Trade Port. General Secretary Xi Jinping has made important instructions and directives on the construction of Hainan Free Trade Port multiple times, and deployed it again in December last year. The Ministry of Commerce, in conjunction with relevant departments, has formulated and issued the "List of Prohibited and Restricted Import and Export Goods and Articles for Hainan Free Trade Port", which is an integral part of the core policy of the free trade port. Based on the current management mode of goods trade in China, a new exploration has been made. It can be said that the 'List' is an important institutional arrangement to support Hainan Free Trade Port in further improving its level of trade liberalization and facilitation. Here, I would like to briefly introduce it from the perspectives of transparency and openness. On the one hand, the 'List' has significantly improved the transparency of goods trade management. The List is based on laws and regulations such as the Hainan Free Trade Port Law and the Foreign Trade Law, and for the first time comprehensively and systematically lists the scope of import and export goods and items that are currently subject to prohibited or restricted management measures by the state, which helps business entities to understand management boundaries clearly and conveniently. On the other hand, the 'List' has significantly increased the openness of goods trade. On the premise of fulfilling international treaty obligations, safeguarding national security, and maintaining the bottom line of ecological and environmental protection, and in combination with the development needs of Hainan Free Trade Port, the List has relaxed the management measures for some imported goods, in short, relaxed restrictions and expanded pilot opening up. The import license management has been cancelled for 60 old mechanical and electrical products with product codes, covering about 80% of the old mechanical and electrical products included in the import license management, which can basically meet the production and self use needs of Hainan enterprises; At the same time, based on the relevant policies of the current pilot free trade zone and comprehensive bonded zone, products with 38 commodity codes are allowed to undergo bonded maintenance at Hainan Free Trade Port, achieving the highest level of openness in this field nationwide. The full text of the "List" will be published on the website of the Ministry of Commerce later. The introduction of the "List" will help Hainan Free Trade Port optimize the trade development environment and enhance the momentum of trade development. Next, the Ministry of Commerce will work with relevant parties to conscientiously implement the "List" and ensure that policy dividends reach business entities directly. thank you! 21st Century Business Herald reporter: The pilot policy of duty-free sales of processed value-added goods for domestic sales has been in place for more than 4 years. What adjustments and optimizations have been made to the policy compared to the current pilot policy? thank you.

Wang Lingjun, Deputy Director of the General Administration of Customs: Thank you for your question. This is an important issue related to customs policies in the construction of Hainan Free Trade Port. The policy of exempting domestic sales of value-added goods refers to the exemption of import tariffs and the collection of import value-added tax and consumption tax in accordance with regulations for goods produced by encouraged industrial enterprises in Hainan Free Trade Port, including imported materials with a value-added of 30% or more, that enter the mainland from Hainan Free Trade Port. In July 2021, this policy was first piloted in Yangpu Bonded Port Area. In the past four years, the pilot policies have been optimized and adjusted multiple times, and the pilot scope has expanded from the Yangpu Bonded Port Area, which is only 2.3 square kilometers, to the entire area of Hainan Free Trade Port. Based on a thorough summary of the pilot experience in the early stage, the General Administration of Customs, together with relevant departments and Hainan Province, has further optimized and improved the policy of duty-free processing of value-added goods after customs clearance, and formulated the "Interim Measures for Tax Collection and Administration of Customs of the People's Republic of China on Duty Free Processing of Value added Goods at Hainan Free Trade Port". Compared with the current pilot policies, the policy of processing value-added tax exemption has been optimized in the following aspects after the closure. One is to relax the threshold for enterprises to enjoy benefits and lift the restriction on encouraging the main business income of industries that account for more than 60% of the total income of enterprises to enjoy benefits. The second is to expand the scope of imported materials. On the basis of allowing only bonded goods to be piloted before, "zero tariff" imported goods will be included in the scope of policy application. The third is to optimize the calculation formula for processing value-added, including the value of self-produced goods at Hainan Free Trade Port in the value-added part, making it easier for enterprises to achieve a 30% value-added rate. The fourth is to expand the scope of application of cumulative processing value-added. For bonded goods that generate value-added through processing and manufacturing by different upstream and downstream enterprises, the value-added part can be cumulatively calculated, encouraging enterprises to expand and extend their industrial chain. Overall, the value-added policy for processing after the closure has lowered the threshold for benefits and expanded the scope of benefits, which can better meet the production needs of domestic enterprises and is conducive to cultivating and building industrial chains and clusters. thank you! Dubai China Arab TV reporter: What specific measures does Hainan Free Trade Port have to promote economic and trade cooperation with Arab countries? Will more Sino Arab cultural and tourism cooperation projects be promoted in the future? For example, opening domestic air routes or hosting special economic, trade and cultural activities. thank you. Feng Fei: Thank you for your question. Hainan Province attaches great importance to economic and trade cooperation, as well as cultural and tourism cooperation with Arab countries. Governor Xiaoming and I have also visited Arab Gulf countries. In recent years, the economic and trade cooperation between Hainan and Arab countries has continued to heat up. Hainan Yangpu Port has established a sister port relationship with Abu Dhabi Port. The sea routes between Yangpu Port and Abu Dhabi Port, as well as the air routes between Haikou and Dubai, have all been opened. It's the direct flight you just mentioned. In fact, we have achieved direct flights at sea and in the air, but of course, this route needs to be further encrypted and increased. Further weaving the "Maritime Silk Road" and "Air Silk Road" between China and Arab countries. Abu Dhabi Khalifa Economic Zone, Dubai International Free Zone, Dubai Jebel Ali Free Zone, and Hainan Free Trade Port are global free trade zone (port) partners. We have established 40 partnerships now, many of which are Arab countries and also influential free trade zones in the world. In the past three years, the average annual growth rate of goods trade import and export between Hainan and the Arab League has exceeded 30%. In 2024, it exceeded 24 billion yuan. After the closure operation, Hainan Free Trade Port will fully leverage its advantages as a hub for domestic and international dual circulation, and deepen its open cooperation with Arab countries in areas such as economy, trade, tourism, culture, education, and clean energy. For example, we will prepare to hold the annual meeting of the World Free Zone Organization and carry out tourism promotion activities in Jeddah, Saudi Arabia. With the continuous deepening of cooperation between the two sides, more direct air routes will be opened and more distinctive economic, trade and cultural activities will be carried out, promoting both sides to create opportunities and share prosperity on the basis of cultural exchanges and people to people exchanges. Please also convey that we welcome enterprises from Arab countries to invest and develop in trade ports. thank you. Cover News reporter: In recent years, Hainan has vigorously promoted the construction of an international tourism consumption center. What achievements have been made so far? What ideas and measures will be taken next? thank you.

Liu Xiaoming (photo by Xu Xiang), Deputy Secretary of the Hainan Provincial Party Committee and Governor Liu Xiaoming:

Thank you for the journalist's question. Sunshine Hainan, a paradise for vacation. Hainan has always been a desirable tourist destination for both domestic and foreign tourists. In recent years, Hainan has vigorously promoted the construction of an international tourism consumption center, and has also achieved significant results. For example, we have carefully built the "Double Ring" tourist road. The "Outer Ring Road" is a tourist road around the island, with a total length of 988 kilometers, built towards the sea, and has a visibility rate of over 50%; The "Inner Ring" is a tourist road around the Tropical Rainforest National Park, with a total length of 466 kilometers, running along the mountains and connecting new cultural and tourism landscapes. Double loop linkage, cars walking in the scenery, people swimming in the painting, the beautiful scenery of mountains and seas should be said to be breathtaking. For example, we have successfully held the China International Consumer Goods Expo for five consecutive years, which has become the largest global exhibition and trading platform for consumer goods in Asia. This expo not only provides strong support for promoting sustained consumption expansion and meeting people's better lives, but also provides an important platform for global enterprises to share the Chinese market and for Chinese enterprises to go global. For example, we are accelerating the cultivation and growth of new tourism formats. Actively developing characteristic tourism projects such as cruise ships, yachts, aerospace, diving, surfing, etc., "coming to Hainan to watch concerts, play music festivals, and visit brand exhibitions" has become a new trend.

In 2024, the province received 97.2 million domestic and foreign tourists, an increase of 8% compared to the previous year; Among them, the number of inbound tourists has more than doubled.

This year is the year when Hainan Free Trade Port will be closed and open up, and we will seize the opportunity to accelerate the construction of an international tourism consumption center. On the one hand, accelerate the creation of a unique and influential new scene for cultural and tourism consumption. We will build a batch of international cultural and tourism IPs and projects, and at the same time promote the renovation and upgrading of existing scenic spots, providing tourists with a more diverse and rich tourism experience. On the other hand, we further create a safe, reassuring, happy, and comfortable tourism consumption environment. So, we have launched the "Trusted Consumption in Hainan" service system, providing tourists with a one-stop service for the entire process from understanding merchants, purchasing products, to complaints, rights protection, and advance compensation, promoting the "full industry, full field, and full coverage" of trustworthy consumption. We will use honest and standardized management, warm and thoughtful service, to make Chinese and foreign tourists feel at home and reluctant to leave. Finally, I sincerely invite all friends, 'Please come to the ends of the earth, where spring is always here. Hainan welcomes you!' Thank you!

Volkswagen Daily reporter: In addition to the list of goods and items just introduced, what other measures does the Ministry of Commerce have to promote the high-level opening up of Hainan Free Trade Port to the outside world in the next step? thank you.

袁晓明：

Thank you for the journalist's question. Promoting reform and development through opening up is an important tool for China's modernization construction to continuously achieve new achievements. The Ministry of Commerce has always adhered to promoting high-level opening up to the outside world, focusing on trade and investment, and supporting and promoting Hainan Free Trade Port to achieve new improvements and breakthroughs in opening up to the outside world. From 2020 to 2024, the actual use of foreign capital in Hainan exceeded the total amount of the first 32 years after its establishment, and the average annual growth rate of the total import and export of goods exceeded 30%. The level of outward oriented economic development continues to improve.

Currently, unilateralism and protectionism are intensifying worldwide, and economic globalization is facing a backlash. The Ministry of Commerce will continue to fully support the construction of Hainan Free Trade Port and strive to make it an important gateway leading China's opening up in the new era. It will not only contribute to the sustained recovery and improvement of the Chinese economy, but also inject stability and certainty into the world economy. We will focus on the following three aspects:

One is to continuously improve the level of institutional openness. Support Hainan Free Trade Port to actively connect with international high standard economic and trade rules and carry out pilot projects. Focus on deepening institutional innovation such as trade and investment liberalization and facilitation, expanding market openness, and promoting fair competition in the market, promote the compatibility of rules, regulations, management, and standards, and create a first-class business environment.

Secondly, we will continue to leverage the advantages of combining open platforms. While supporting the construction of Hainan Free Trade Port, the Ministry of Commerce has also promoted the establishment of open platforms such as the island wide free trade pilot zone, the island wide cross-border e-commerce comprehensive pilot zone, and the comprehensive pilot program for expanding the opening up of the service industry. Together with Hainan Province, we will successfully host the China International Consumer Goods Expo. We will continue to support Hainan in strengthening various open platforms, continuously amplifying the cumulative effect of "1+1>2", better releasing policy and institutional dividends, and forming more achievements in reform and opening up.

The third is to continuously cultivate and develop new driving forces. Based on Hainan's resource endowment and geographical advantages, targeted policy measures will be introduced around key industries to supplement, extend, and strengthen the supply chain. This will further promote the innovative development of goods trade, service trade, and digital trade, actively cultivate new business forms and models, accelerate the attraction of industrial clusters, and help build a modern industrial system. thank you!

Reporter from China Finance News:
It was just announced at the meeting that Hainan will officially launch the island wide lockdown operation on December 18th. May I ask how Hainan Province will take this opportunity to accelerate the pace of high-quality development and build a modern industrial system with Hainan's characteristics and advantages? thank you.

Feng Fei:

Thank you for your question. Building a modern industrial system with Hainan's characteristics and advantages is not only the requirement of General Secretary Xi Jinping for Hainan, but also the most important task for achieving high-quality development. The characteristics and advantages that I understand are based on Hainan's comparative advantages and the need to form a competitive advantage in the industry. Overall, after the closure operation, it is more conducive to gathering global factors, allocating global resources, and promoting industrial development. We have summarized '4532' specifically.

The so-called "4" refers to promoting the supplementation, extension, optimization and upgrading of the four leading industries. Just now I also introduced that these four industries currently account for 67% of GDP, and we have increased it by 13.7 percentage points in the past five years. In the tourism industry, we will build an international tourism consumption center with high standards and create a world-class tourist destination. Governor Liu Xiaoming introduced the situation to everyone regarding this issue. In terms of modern service industry, we have a very influential event, the China International Consumer Goods Expo, which has been held for five sessions and has expanded the service radius of new trade to the international community, especially Southeast Asia and other regions. In terms of high-tech industries, we will strengthen industrial clusters such as offshore wind power, biomedicine, and digital economy. In terms of efficient agriculture with tropical characteristics, let "new, unique and excellent" tropical fruits and vegetables enrich countrymen's "vegetable basket" and "fruit plate". I also believe that everyone has tasted Hainan's "New and Unique" tropical specialty fruits. The so-called "5" refers to the important practice of building new quality productive forces through the "Five Directions for Strong Development". This is based on the unique advantages of Hainan's climate, temperature, ocean depth, geographical latitude, ecological green and other resource endowments, as well as the advantages of the free trade port opening policy, to clarify the "Five Directions for Strong Development". Adhere to the principle of "striving for excellence through planting", create a world-class biological breeding zone, and enable Hainan's seeds to go global. Adhere to the principle of 'seeking strength from the sea', develop deep-sea technology, and strive to create a 'maritime Hainan'. Adhering to the principle of "striving for strength from the sky" and using commercial space launch site resources to "drive production with the site" means using launch sites to bring up industries, develop rocket chains, satellite chains, data chains, and "space+" industries. Adhere to the principle of "striving for green and strong", build a "low-carbon island in Hainan", reduce the "carbon footprint" of Hainan's products and services to a very low level, and enhance international competitiveness. Adhere to the principle of 'strengthening through numbers', develop international data centers and AI big models, and seize the opportunity to advance in the new round of technological revolution and industrial transformation. The so-called "3" refers to doing a good job in the three consumption articles of offshore tax exemption, medical care, and education. Create a "gold lettered signboard" for tax exemption in outlying islands, so that countrymen can buy more cost-effective duty-free goods; Build a "medical special zone" in Boao Lecheng, allowing more patients to enjoy high-quality global medical resources; Build the "Study in Hainan" brand, allowing more students to receive high-level international education without going abroad. If you further understand, there are also many excellent independent and cooperative education programs. The so-called "2" refers to the construction of two islands: the island of talent gathering and the island of technological innovation. Accelerate open cooperation, gather talents from all over the world, and empower the construction of a modern industrial system with technological innovation. The modern industrial system I just talked about is actually seeking to build its industrial innovation capability and innovation platform.

We sincerely invite investors from all over the world to invest and develop in Hainan. We will provide excellent service guarantees to ensure that everyone can succeed, recruit talents, and develop well in Hainan. thank you!

Reporter from China Central Radio and Television Station and China National Radio and Television Network:

What measures will the customs take to better implement the "zero tariff" policy for imported goods, relax trade management and other open policies, and achieve efficient and convenient supervision of Hainan Free Trade Port? thank you.

2025-07-23 11：12：19

Wang Lingjun: Thank you for your question and for your attention to customs work. In order to better implement the "zero tariff" policy for imported goods, relax trade management and other open policies, and standardize customs supervision of Hainan Free Trade Port, the General Administration of Customs has studied and formulated the "Measures for the Supervision of Hainan Free Trade Port by the Customs of the People's Republic of China" and a series of supporting management systems, clarifying the customs supervision requirements for entry and exit between Hainan Free Trade Port and overseas, goods entering the mainland from Hainan Free Trade Port, and customs supervision within Hainan Free Trade Port after the island is closed, providing institutional guarantees for the implementation of safe, efficient and precise supervision. The general principle is to control what the "first line" opens up and what the "second line" controls, achieving both precise control and efficient convenience. There are two specific aspects:

In terms of "frontline" imports, further improve the level of customs clearance facilitation. The Hainan Free Trade Port has granted clearance, which refers to the diameter of goods. The clearance policy for imported goods is clearly defined in the Hainan Free Trade Port Law of the People's Republic of China. Except for goods that require inspection and quarantine or license management according to law, the customs will release imported "zero tariff" goods, bonded goods, etc. in accordance with regulations. In June 2020, this policy was first piloted in Yangpu Bonded Port Area and gradually expanded to Haikou Comprehensive Bonded Zone, Haikou Airport Comprehensive Bonded Zone, and Yangpu Economic Development Zone, greatly improving customs clearance efficiency and reducing enterprise clearance costs. After the closure, direct release will be implemented throughout the entire area of Hainan Free Trade Port.

In terms of "second tier" island exports, emphasis is placed on intelligent and efficient supervision. Firstly, set up customs supervision channels and non customs supervision channels at "second tier ports". Customs manages "zero tariff" goods, goods that enjoy value-added processing policies, and goods that have relaxed trade management measures in the customs supervision channel. Other domestic circulating goods pass through non customs supervision channels and are managed by Hainan Province in accordance with current domestic circulation regulations to facilitate trade between Hainan and the mainland to the greatest extent possible. Secondly, for these three types of goods, the customs will innovate and implement the "phased island departure and centralized declaration" clearance mode. Enterprises can first handle the "second-line" island departure procedures for goods, and then handle the customs declaration procedures in a centralized manner, effectively improving clearance efficiency. In addition, in order to further simplify the declaration procedures for "second-line" island exports, the customs has significantly reduced the number of declaration items for "second-line" island exports. The number of customs declaration items that enterprises need to declare has been reduced from 105 to 42. Next, the General Administration of Customs will continue to improve the customs supervision mode that is compatible with the island wide customs closure operation and the actual needs of Hainan, to assist Hainan's institutional opening-up and empower the high-quality development of Hainan Free Trade Port. thank you! Hainan Radio and Television Station reporter: As mentioned by the publisher just now, the closure of the entire island is the beginning of a new stage in the construction of Hainan Free Trade Port, and it is also a long-term task. What measures and measures will be taken in the future after the closure? Supporting Hainan Free Trade Port to further expand its opening-up to the outside world? thank you. Wang Changlin: Thank you for your question. As you said, the closure of the entire island is a new starting point for the construction of Hainan Free Trade Port.

Next, we will follow the deployment of the "Overall Plan for the Construction of Hainan Free Trade Port", work with Hainan Province and relevant departments to continuously improve the policy and institutional system that is compatible with high-level free trade ports, adhere to goal oriented and problem oriented approaches, and continue to accelerate the pace of opening up to the outside world.

It mainly includes the following six aspects:

One is to accelerate the construction of a free entry and exit, safe and convenient trade management system. On the one hand, further expanding the scope of "zero tariff" goods and promoting the strengthening and expansion of goods trade. On the other hand, in order to meet the requirements of the development of service trade, we will accelerate the opening up of service industries such as tourism, education, and healthcare, and promote both entry and operation.

The second is to focus on creating an open, transparent, and predictable investment environment. Further relax foreign investment access, introduce a new batch of special measures to relax market access, deeply implement the commitment based system reform, and accelerate the establishment of an investment facilitation system with a focus on process supervision. The third is to gradually establish a financial policy system that is compatible with open development. Establish and improve a multifunctional free trade account system, further enriching account functions and application scenarios. We will orderly expand the opening up of the financial industry to both domestic and international markets, and actively explore pilot projects such as cross-border asset management services. The fourth is to implement more convenient entry and exit management policies. Further relax restrictions on the free entry and exit of personnel. Implement more relaxed temporary entry and exit policies for business personnel, convenient work visa policies, and further improve the residency system. The fifth is to establish a more free and open shipping system. Accelerate the construction of the "China Yangpu Port" registry port, continuously optimize ship inspection and management policies, and enhance the level of shipping services. Further relax airspace control and air traffic restrictions, and actively promote the opening of the seventh air traffic right. The sixth is to establish an efficient, convenient, and secure mechanism for cross-border data flow. This is the demand of many current business entities and also the need to promote the development of digital trade. We will promote the orderly expansion of communication resources and business openness, adjust and improve the negative list of data export management, accelerate the construction of international communication business import and export bureaus and cross-border submarine cables, and actively cultivate and develop the digital economy. thank you! Shou Xiaoli: Keep asking questions. Two reporters raised their hands and asked the last two questions. Daily Economic News reporter: In recent years, the Ministry of Finance has introduced a series of tax supporting policies to support the construction of Hainan Free Trade Port. May I ask how the tax system reform will be further promoted after the island is closed for operation? thank you. Liao Min: Thank you for your question. This is a question that everyone is very concerned about. As we all know, the construction of Hainan Free Trade Port will definitely involve reforms in the tax system. The overall requirement of the "Overall Plan for the Construction of Hainan Free Trade Port" for the tax reform system is to implement zero tariffs, low tax rates, and simplified tax arrangements in steps and stages. This nine character policy will ultimately form an internationally competitive tax system to support the construction of Hainan Free Trade Port. After the release of the overall plan, the Ministry of Finance has successively introduced multiple tax policies such as duty-free shopping on outlying islands, zero tariffs on some imported goods, and preferential treatment for corporate income tax and personal income tax. After the closure of the entire island, the Ministry of Finance will continue to deepen tax reform, taking into account the actual construction of the free trade port and the need to promote higher levels of opening up to the outside world, to ensure that policy efforts continue to increase and policy dividends continue to be released. This mainly involves the following five aspects: firstly, continuing to implement the current preferential policies for corporate income tax and personal income tax, attracting more high-end talents and high-quality enterprises that meet the needs of free trade port construction to settle in Hainan, and assisting the development of the free trade port. The second is to continuously expand the scope of "zero tariff" goods and adjust the catalog of imported taxable goods in a timely manner.

Thirdly, we will continue to implement the policy of tax-free shopping on outlying islands, and further optimize and adjust policy arrangements in combination with the diversified shopping needs of consumers, supporting the construction of an international tourism consumption center in Hainan.

The fourth is to actively study the relevant tax policies for the consumption of imported goods by island residents, and timely carry out positive list management for imported goods consumed by island residents, which means allowing island residents to purchase some imported products tax-free. We will launch this pilot project as soon as possible to enhance the sense of achievement of residents on the island.

The fifth is to steadily promote the research work on sales tax reform. Sales tax mainly involves the merger of multiple taxes and fees such as value-added tax, consumption tax, vehicle purchase tax, urban maintenance and construction tax, and education surcharge. The scope of involvement is relatively wide and the situation is more complex. It is necessary to consider both the current situation and long-term policy arrangements. We will promote research on simplifying the tax system in a steady, orderly, and step-by-step manner, and conduct timely testing and implementation based on the development of Hainan Free Trade Port construction.

Here, I also thank my journalist friends for their concern and support for financial work. thank you! Shou Xiaoli: Please continue with the last question.

China News Service reporter: We have noticed that Hainan has always attached great importance to institutional integration and innovation work. What are some good cases that can be shared? How will the next step be to promote institutional integration and innovation around the operation of customs clearance? thank you.

Liu Xiaoming:

Thank you for the journalist's question. Hainan regards institutional integration innovation as an important lever for promoting high-level opening up and implementing reforms. It has cultivated 20 batches of 166 innovative cases, of which more than 40 have been recognized by relevant central departments and promoted nationwide, fully leveraging the positive role of reform and opening up pilot fields. For example, taking the lead in the country to achieve "one-stop application and online processing" for credit repair in the whole province, helping dishonest business entities to complete credit repair with "zero running", and promoting the full play of credit incentives and punishment mechanisms for dishonesty. We have also launched a number of reform measures to "efficiently accomplish one thing" involving foreign services, foreign enterprise services, foreign direct investment and other matters with the characteristics of the free trade port. For example, we have taken the lead in establishing a unified, open and transparent land information promotion platform in the whole province - "Land Supermarket". This supermarket realizes "reading land on the cloud", "selecting land on the cloud" and "buying land on the cloud". This makes land acquisition more time-saving, labor-saving and worry free for enterprises, and effectively solves the problems of "having projects but no land" and "having land but no projects". For example, we have launched a multifunctional free trade account, explored the establishment of a cross-border fund centralized operation center, innovated the "zero tariff" import goods full process supervision model, taken the lead in implementing tax-free cosmetic electronic labels, and innovated the "credit+intelligence" supervision of ports, all of which have made beneficial explorations for the innovation of the customs operation supervision service model.

Next, we will adhere to integrating institutional innovation as the "golden key" to promote development and solve problems. We will actively explore and timely summarize and refine the reform and innovation practices in the system design, management system, legal guarantee, and regulatory mode of customs operation around the arrangement of the Hainan Free Trade Port's customs operation system, and strive to build a customs supervision special area with international competitiveness and influence. At the same time, we strengthen the integration and communication of rules, regulations, management, and standards in the elevation standard economic and trade rules, scientifically plan for reform and opening up before and after the closure, and actively plan to cultivate and launch more institutional integration and innovation achievements with national demonstration power, influence, and recognition of free trade ports, so that new momentum, advantages, and vitality of Hainan Free Trade Port continue to emerge.

Here, I also greatly appreciate the media's attention, concern, and support for the construction of Hainan Free Trade Port and the high-quality development of Hainan. thank you!

Shou Xiaoli: Thank you to all the publishers and journalists for participating. That's all for today's press conference. Goodbye everyone!