China has introduced new policies to make it easier for foreign businesses and professionals to operate in the Hainan Free Trade Port (FTP). The measures, announced in a government circular, cover energy trade, medical services, and bonded business operations. The Hainan FTP, located in China's southernmost island province, is the world's largest FTP by area. The new policies aim to make the free trade port more open to overseas talent.
The measures allow foreign physicians licensed to practice medicine overseas to obtain permits to provide clinical diagnosis and treatment services in Hainan for up to three years. Extensions are available in accordance with relevant regulations. Additionally, more convenient policies regarding work permits and stay and residence will be introduced for foreign nationals. This move is part of China's efforts to promote high-standard opening-up and make the business environment more friendly.
The Hainan FTP launched island-wide special customs operations in December 2025. The operations allow freer entry of overseas goods, expanded zero-tariff coverage, and more business-friendly measures. Overseas companies will be allowed to use bonded facilities at Hainan's liquefied natural gas (LNG) receiving terminals. The FTP will also be supported in conducting LNG futures delivery warehouse operations after LNG futures contracts are launched.
Other measures include promoting offshore trade, expanding the range of products eligible for bonded maintenance, and facilitating the entry of eligible bonded remanufactured products into pilot free trade zones on the Chinese mainland. The use of the yuan in new forms of barter trade will also be encouraged. Furthermore, the FTP's economic and trade cooperation with China's Hong Kong Special Administrative Region will be deepened.
Bonded remanufactured products entering mainland pilot free trade zones will be subject to applicable import tariffs, import-related value-added tax, and consumption tax. They must also meet all applicable technical requirements for equivalent new products and relevant regulations on remanufactured products. These products must be clearly labelled as remanufactured.
The new policies aim to support the development of the Hainan FTP and make it a more attractive destination for foreign businesses and professionals. The measures will help to promote high-standard opening-up and drive economic growth in the region. The government circular also calls for improved insurance and financial services to support the development of the FTP.
The introduction of these measures is expected to have a positive impact on the business environment in the Hainan FTP. The region is expected to become more competitive and attractive to foreign investors. The policies will also help to strengthen economic ties between China and other countries, particularly in the Asia-Pacific region.
Key points
- China introduces 16 measures to make Hainan Free Trade Port more open to foreign businesses and professionals.
