Views: 0 Author: Site Editor Publish Time: 2025-07-25 Origin: Site
Is China Building Another Hong Kong in Hainan?
The Hainan Free Trade Port (FTP) will implement a liberalized policy system characterized by “frontline opening, second-line control, and island-wide freedom.”
Why is China playing the “Hainan FTP” card amid the U.S.-led tariff wars and deglobalization trend? Can Hainan defy expectations and become the next Hong Kong?
Frontline Opening: Goods entering Hainan (except those on a restricted list) face zero tariffs, treating the island and overseas as a single open zone.
Second-Line Control: Goods moving from Hainan to mainland China will be taxed as imports to prevent price shocks.
Island-Wide Freedom: Minimal intervention in local economic activities, exemplified by a 15% corporate tax rate (vs. 25% mainland China, 16.5% Hong Kong).
Shopping: Annual ￥100,000 tax-free quota for tourists.
Taxation: Eligible companies pay only 15% income tax (vs. Hong Kong’s 16.5%). Individuals earning in Hainan for 183+ days/year enjoy progressive rates of 3%, 10%, or 15%.
Legal Backing: The 2021 Hainan FTP Law grants unparalleled freedoms in trade, investment, capital flows, talent mobility, and data security.
Hainan aims to attract high-skilled migrants and multinational HQs with policies like:
Simplified visas for foreign investors/workers.
Potential to become China’s first “immigrant hub”, mirroring Singapore (where 30% of residents are foreign-born).
Unlike Hong Kong’s focus on re-export trade, Hainan prioritizes service trade, consumption, and eco-tourism under its “Three Zones, One Center” plan:
National reform pilot zone
Ecological civilization zone
International tourism hub
Strategic support base
Conclusion: Hainan isn’t replicating Hong Kong—it’s forging a higher-spec, state-designed FTP with bolder policies. The question isn’t if but how soon it reshapes Asia’s economic landscape.
