Six Months On, Foreign Investors Share in China's Opportunities in Hainan
HIMC2026-06-17 23:14:17
As the development of the Hainan Free Trade Port (FTP) continues to boom, its doors open even wider to the world. So much so that countless foreign enterprises have crossed mountains and seas, taking Hainan as their gateway to share in China's opportunities.
On December 18, 2025, the Hainan FTP launched island-wide special customs operations. In the six months since, increasing numbers of global investors have set their sights on Hainan.
Here, they are leveraging the island's policy benefits and transforming them into genuine competitive advantages.
Enticing Policies Achieve Cost Competitiveness
Of the factors that entice foreign investors to choose the Hainan FTP, the favorable policies are certainly at the top of their lists. The impact of these policies is directly reflected in cost savings that translate into real monetary gains.
Juan Ignacio Valenzuela from Chile operates a cross-border supply chain platform in Haikou. When discussing the benefits brought by the FTP policies, he quickly did the math: so long as the value-added of goods processed in Hainan reaches 30%, the resulting products can enter the mainland market tariff-free. Purchasing with RMB also allows for tax refunds, offering about a 13% cost advantage over competitors. "When you add up all the benefits, cost savings can reach nearly 20%—just by operating here in Hainan."
Jee Von, CEO of the Malaysian sandal brand Fipper, shares similar sentiments. Fipper chose to open its first store in Haikou rather than Shanghai or Shenzhen, a move that aligns with their "island market" strategy: "We penetrated the Indonesian market through Bali; Hainan is definitely the best choice for us to penetrate the Chinese market." The key factors that give them confidence to stay in Hainan are the FTP's "zero-tariff" lists and a corporate income tax rate of 15%, which is even lower than Singapore's. As a result, the overall tax burden for a pair of classic flip-flops from Fipper is 10% to 15% lower than in other regions.
For businesses, time cost is crucial. Wu Huijuan, General Manager of the Marketing Department at Jia Green Chocolate Works, illustrates what "Hainan speed" means in numbers: it took us only three hours from our company receiving approval to acquiring our business license, three months to go from a bare factory to mass production, and just five minutes for our goods to clear customs—on the first day of special customs operations, at that. More importantly, policies such as import tariff exemptions for products with at least 30% added value allow Jia Green Chocolate Works to save about 10% on costs. "We can invest that 10% entirely into product development."
Vibrant Markets: From Exhibitor to Investor
Since the launch of special customs operations, Hainan has hosted the sixth China International Consumer Products Expo (CICPE). As China's first national-level exhibition focused on consumer products and the largest of its kind in the Asia-Pacific region, the CICPE has evolved over six years into not just a showcase for world brands, but also an investment accelerator that allows international investors to tap into global opportunities through Hainan.
At this year's CICPE, the German jewelry brand Coeur de Lion made its Asian debut. Ana Vassallo, the brand's Senior Key Account Manager, was highly impressed by how smooth the process of exhibiting at the CICPE was: "We really should have come sooner." Her visit to Hainan to attend the expo gave her a deeper understanding of the local tourism market, shopping centers, and infrastructure. Vassallo believes that the choice to host the CICPE in Hainan highlights the island's significance. "Hainan is becoming an increasingly important place, not just in China but internationally as well," she added. "Using Hainan as a starting point is definitely feasible."
A consistent exhibitor at the CICPE for six years, Singapore's massage chair brand, OSIM, has successfully transitioned from an exhibitor to an investor. Following its participation in the first edition of the expo, the company opened its first store in Haikou, and this year it expanded its footprint and upgraded its concept. With special customs operations now in place, the two-tiered customs management system, characterized by "freer access at the first line and efficient control at the second line," has led them to consider shifting equipment originally imported from abroad to Hainan. Patrick Cai, head of BSM at OSIM China, firmly stated: "In the next two to three years, our presence in Hainan won't be limited to a single store."
Intensive Innovation: Expanding Real-World Evidence Research in Hainan
In the half-year since the launch of special customs operations, its benefits are being felt beyond trade and duty-free shopping. In the healthcare sector, institutional innovations in real-world evidence research are enabling the world's top technologies to enter China at "Hainan speed," a unique advantage that other free trade ports find hard to replicate.
This is precisely what drew Canadian health tech company Dream Gyro Sleeptopia Group to establish itself in Hainan. On the opening day of the first China International Consumer Products Expo in 2021, the firm settled in the Haikou National High-tech Zone and has now built a complete industry chain encompassing localized R&D, clinical validation, and product implementation. In Boao Lecheng, they have used the local real-world evidence research system in collaboration with Hainan Ruijin Hospital to conduct over 60 real-world case validations, thereby shortening their research cycle, reducing costs, and streamlining their methods. Jingming Li, the group's China Region CEO, stated: "Leveraging the Hainan FTP's advantageous location, we aim to feed the results we have achieved in the Chinese market back to the international market, even in North America."
Each Choice Reflects Firm Confidence in Hainan's Development Potential
From policies to systems, from openness to innovation, the construction of the Hainan FTP continues to achieve breakthroughs. As a result, entrepreneurs from around the world are choosing Hainan time and again, reflecting their firm confidence in the FTP's development.
Dr. Joe (Yizhou) He, Managing Director and China CEO of Australian Capital Equity, commented: "Hainan clearly shows how China is advancing high-level opening-up and deepening its links with the world." He believes that in the current environment, policy support remains crucial, but the clarity, continuity, and certainty of policy execution are even more important. The clearer the long-term framework, the easier it is for businesses and investors to make rational decisions and drive projects towards sustainable development. "Hainan can help connect strategic directions with practical cooperation."
Andreas Larsen Tverå, CEO of Norway's Wolf Group, has visited the Hainan FTP three times over the past year to explore business opportunities, reflecting his confidence in its development. Recognizing the opportunities presented by its development, Andreas sincerely advises other Norwegian companies looking to enter the Chinese market to visit Hainan at the earliest possible opportunity and establish connections and cooperation with the local community. He stated: "I believe Hainan will become a hub not only for the Chinese mainland but also for the whole of Asia."
From Canadian chocolate to Chilean cross-border trade, from Malaysian flip-flops to German jewelry, from Singaporean health products to Australian strategic investment, regardless of country or language, Hainan offers the same answer: The Hainan FTP is emerging as China's new gateway to the world. Just half a year old, special customs operations are a new starting point. When it comes to opportunities, the future is in Hainan.
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