Core Viewpoint - The implementation of full island closure operation in Hainan Free Trade Port is a landmark project and an important measure to further expand openness, characterized by the policy of "one line open, two lines controlled, and free flow within the island" [1] Group 1 - The full island closure operation is a significant milestone in the construction of Hainan Free Trade Port [1] - The policy features "one line open," which allows for a series of free and convenient entry and exit measures between Hainan Free Trade Port and other countries and regions outside China's customs [1] - The "two lines controlled" aspect refers to precise management of the content that is opened up in the "one line" between Hainan Free Trade Port and the mainland [1] - The "free flow within the island" indicates that various factors can circulate relatively freely within Hainan Free Trade Port [1]

Core Viewpoint - Hainan is accelerating the implementation of its free trade port closure operation plan, aiming for a smooth closure by the end of 2025, as stated by Hainan's governor Liu Xiaoming at the Boao Forum for Asia 2025 annual meeting [3]. Group 1: Understanding "One Line" and "Two Lines" - "One line" refers to the border line allowing free movement of goods, capital, and personnel between Hainan and foreign countries, while "two lines" refer to the regulatory boundary between the free trade port and other domestic regions [8][9]. - Hainan's free trade port will have a prohibited and restricted import/export list, and a zero-tariff negative list, allowing goods outside these lists to move freely [10][11]. Group 2: Customs and Regulatory Framework - Hainan's free trade port is classified as a "customs regulatory special area," differing from existing customs special regulatory areas in China [11]. - The management of goods will be regulated under the two lists, ensuring that while goods can enter Hainan duty-free, they cannot flow into mainland China without incurring tariffs [10][12]. Group 3: Benefits for Residents and Businesses - The closure operation will not hinder the movement of people between Hainan and other regions, and will enhance trade opportunities for residents [13]. - High-end and scarce talent working in Hainan will benefit from personal income tax exemptions on amounts exceeding 15% [13][16]. Group 4: Zero Tariff Policies - Hainan has established zero-tariff policies for raw materials, self-use production equipment, and transportation tools, allowing registered companies to import these without tariffs [17]. - The zero-tariff policy aims to support businesses engaged in production and service trade under the "two ends outside" model [17]. Group 5: Future Development and Recommendations - Experts suggest that Hainan should focus on developing high-end service industries, as the service sector's contribution to China's GDP is relatively low compared to developed countries [20]. - Utilizing modern technologies to reduce operational costs for businesses is recommended, drawing lessons from successful international free trade ports like Singapore and Dubai [20][21].