Core Insights - Hainan Free Trade Port officially commenced its full island customs closure operation on December 18, 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][2] Summary by Sections Opening and Customs Operations - The customs 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 [2] - The proportion of "zero tariff" goods has increased dramatically from 21% to 74%, enhancing the openness of imported goods [2] International Trade Context - The operation of Hainan Free Trade Port is seen as a response to global economic changes, promoting multilateralism and open policies amid rising trade protectionism [3] - UNCTAD forecasts global trade to exceed $35 trillion this year, but warns of a slowdown in trade growth due to high tariffs in the coming year [3] Unique Advantages of Hainan - Hainan Free Trade Port is positioned as a leading practice in China's openness, with a larger geographical area (approximately 34,000 square kilometers) compared to other global free trade ports like Hong Kong and Singapore, allowing for greater collaborative innovation [5] - The port's development is supported by China's vast domestic market and a comprehensive industrial system, which will facilitate trade and investment expansion [5] Future Development Goals - The customs closure operation is a milestone in Hainan's long-term development plan, with goals set for 2035 to establish a mature free trade port system and operations [7] - The "15th Five-Year Plan" suggests establishing a competitive tax system and optimizing tax policies to enhance the economic environment for residents and businesses [7] Contribution to National Experience - Hainan's exploration in customs management and trade will provide valuable insights for national policy, particularly in enhancing market openness and facilitating cross-border flows of data and services [8]