Core Viewpoint - The Hainan Free Trade Port has officially commenced its full island closure operation, marking a significant step towards higher levels of openness and serving as a crucial gateway for China to share development opportunities with the world [1][5][12]. Summary by Sections Opening and Policy Changes - The proportion of "zero tariff" goods has increased dramatically from 21% to 74%, with the threshold for enjoying the 30% value-added processing tax exemption lowered [1][7]. - The "two 15%" income tax policy will continue until the end of 2027, and the number of customs declaration items for certain "first-line" imported goods has been simplified from 105 to 33 [1][6]. Customs and Regulatory Framework - The closure operation establishes Hainan as a special customs supervision area, implementing a policy characterized by "first-line" openness, "second-line" control, and free movement within the island [4][5]. - The transition from a "positive list" to a "negative list" management model signifies a major change in customs supervision, enhancing clearance efficiency and providing a solid institutional guarantee for the free flow of goods [6][7]. International Trade Context - The operation of the Hainan Free Trade Port is positioned within the global economic landscape, emphasizing China's commitment to multilateralism and open policies amid rising trade protectionism [8][9]. - Global trade is expected to exceed $35 trillion this year, but growth may slow down in the coming quarters due to high tariffs and other pressures [8]. Future Development and Strategic Goals - The closure operation is just the beginning of a long-term task, with goals set for 2035 to achieve a more mature system and operational model for the free trade port [12][14]. - The unique advantages of Hainan, including its large geographical area and potential for collaborative innovation, position it favorably for future growth and investment [10][11]. Policy Directions and Economic Planning - The "15th Five-Year Plan" suggests establishing a competitive tax system and optimizing tax policies to enhance the economic environment for residents and businesses [14]. - The Hainan Free Trade Port aims to provide valuable experiences for national market opening, focusing on supply chain restructuring and interaction with other regions [15].