When I first visited Haikou in 2020, the Hainan Free Trade Port was more vision than reality. Fast forward to mid-2026, and the conversation has fundamentally changed. When the Hainan Free Trade Port completed its island-wide independent customs operations at the end of 2025, the policy blueprint finally became a functioning reality. Goods now enter Hainan duty-free from the rest of the world. Move them into the mainland, and they face standard tariffs unless 30% of value has been added on the island. That’s Hainan’s “second-tier” customs wall. That single rule is quietly reshaping supply chains.
As a foreign professional on the ground, I see three shifts already taking hold in mid-2026:
1. Trade facilitation with real-world impact
Customs at Yangpu Port now operates through a streamlined single-window system. Pre-arrival clearance and trusted-trader programs have cut release times sharply. For e-commerce players, bonded warehousing in Haikou rivals Shenzhen in speed — with zero duty on imported stock.
2. Services and investment opening up
Updated negative lists have removed foreign ownership restrictions in several professional sectors. Law firms, consultancies, and healthcare operators with majority foreign control are growing, particularly around the Boao medical zone. The 15% individual income tax cap for high-level talent continues to attract European and Southeast Asian specialists.
3. An improving, if imperfect, business environment
The International Commercial Court and dedicated IP courts are handling more cases. A one-stop foreign investor service center in Haikou now bundles work permits, residence visas, and company registration. Visa-free access covers 59 countries for up to 30 days, with smoother online pre-registration than in years past.
Gaps worth watching
Regulatory consistency between Haikou, Sanya, and Boao still varies. The local talent pool for mid-level management remains shallow, forcing investment in training. And cross-border data transfer rules, though progressing through pilot programs, remain a limiting factor for finance and tech firms.
Where the value is heading
Looking ahead, I expect most foreign attention to cluster around green industries and carbon-credit pilots, offshore trade functions, and premium wellness tourism linking duty-free retail with the Boao medical ecosystem.
For international businesses, Hainan is shifting from a “watch and wait” story to a “here and now” opportunity. I plan to unpack individual sectors in more detail soon.
Author:
Ulla Nurmenniemi
Chairman, Wellbridge Ltd (Beijing & Haikou)
Vice Chairman, FinnCham China - Beijing
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