Core Viewpoint - The Hainan Free Trade Port will officially implement a full island customs closure policy starting December 18, 2025, which is a significant step towards expanding openness and accelerating development [1][2][8]. Group 1: Policy Overview - The full island customs closure will establish Hainan Island as a special customs supervision area, characterized by a policy of "one line open, one line controlled, and free flow within the island" [3][4]. - The policy aims to facilitate the flow of people, goods, capital, and data, enhancing the convenience of trade and investment [2][8]. Group 2: Tax and Trade Management Changes - The coverage of "zero tariff" goods will significantly increase from 1,900 to approximately 6,600 tax items, expanding the range of beneficiaries to include various enterprises and non-profit organizations on the island [10]. - The import of "zero tariff" goods will no longer be limited to self-use by enterprises, allowing free circulation among beneficiaries without the need to pay import taxes [11]. Group 3: Impact on Trade and Investment - The policy will implement more favorable trade management measures, allowing for the import of previously restricted goods under specific arrangements [9]. - The establishment of ten "second-line ports" will facilitate the efficient passage of goods entering the mainland, enhancing trade efficiency [9].

Core Points - The official announcement states that the Hainan Free Trade Port will officially start its customs closure on December 18, 2025, symbolizing China's commitment to high-level openness [2][3] - The customs closure will create a special customs supervision area across Hainan Island, implementing a policy characterized by "one line" opening, "two lines" management, and free flow within the island [2][3] Summary by Sections Customs Closure Details - The customs closure is designed to enhance international connectivity, allowing most goods, personnel, and transportation to enter and exit Hainan without additional documentation [3] - Specific management will be applied to certain goods entering the mainland from Hainan, including zero-tariff goods and those benefiting from processing and trade management policies [3] Future Developments - The customs closure marks a new starting point for the construction of the Hainan Free Trade Port, with plans to continuously improve the policy system in line with high-level free trade port standards [3]

Core Viewpoint - The customs authority emphasizes the importance of balancing development and security in the implementation of policies for the Hainan Free Trade Port, focusing on risk prevention and control measures. Group 1: Policy Implementation and Risk Control - The customs authority will prioritize a comprehensive approach to policy implementation and risk prevention, ensuring that effective mechanisms for early detection and response are in place [1] - The authority plans to utilize the "window period" before the full closure of the island to conduct practical exercises and identify potential gaps in the system [1] - Collaboration with industry regulatory bodies will be enhanced to establish a lifecycle management system for enterprises, which includes qualification registration, operational management, and joint penalties [1] Group 2: Customs Regulations and Efficiency - New customs regulations for the Hainan Free Trade Port have been released, focusing on the management of goods and the flow of products within the island [2] - The customs authority will set up monitoring channels at ten "second-line ports" to ensure precise management of goods leaving the island [2] - The new tax collection measures will exempt certain goods from import duties if they meet specific processing value criteria, streamlining the application process for enterprises [2] - Post-closure, the customs authority will simplify the declaration process for "zero tariff" goods, reducing the required data from 105 items to 33, significantly improving customs efficiency [2]

Core Viewpoints - The A-share market experienced fluctuations, with the Shanghai Composite Index closing at 3582.3 points, up 0.01%, while the Shenzhen Component Index fell by 0.37% and the ChiNext Index remained unchanged [1][6] - The trading volume in the Shanghai and Shenzhen markets reached 1.86 trillion yuan, with sectors such as non-bank financials, beauty care, and home appliances leading the gains, while construction materials, military industry, and machinery equipment lagged [1][6] - The Hang Seng Index in Hong Kong rose by 1.62% to close at 25,538.07 points, and major overseas indices also saw gains, indicating a generally positive market sentiment [1][6] Important News - The Hainan Free Trade Port will officially start its full island closure operation on December 18, 2025, with a series of policy measures to be implemented, including an increase in the proportion of "zero tariff" goods from 21% to 74% [2][7] - The upcoming economic talks between China and the U.S. will be held in Sweden from July 27 to 30, focusing on mutual economic concerns and cooperation [7] Investment Highlights - The confirmed closure date for Hainan and updated policy measures indicate a significant shift towards more open trade practices, with "zero tariff" goods coverage expanding from 1,900 to approximately 6,600 items, representing a 53 percentage point increase [9][11] - The scope of beneficiaries for the "zero tariff" policy has broadened, now including various enterprises and institutions with actual import needs, enhancing the competitive landscape [11] - The tourism sector in Hainan is expected to benefit significantly from the new policies, with projections of 97.2 million visitors in 2024, reflecting an 8% year-on-year growth, and a notable increase in inbound tourism [12][13] - The impact of the full closure on duty-free businesses is twofold, potentially increasing customer flow while also intensifying competition due to lower prices of imported goods [13]

Core Points - The Hainan Free Trade Port will officially start its closure operation on December 18, 2025, symbolizing China's commitment to high-level openness and reform [1][11] - The closure operation is a significant milestone for Hainan's development and aims to enhance its industrial competitiveness and cluster effects [3][11] Policy Changes - The "zero tariff" policy will expand from 1,900 to approximately 6,600 product categories, covering 74% of all product tax categories, an increase of nearly 53 percentage points [2] - The scope of beneficiaries for the "zero tariff" policy will also broaden, allowing various enterprises and institutions with actual import needs to benefit from the policy [2] Industry Focus - Hainan will focus on developing key industries such as biotechnology, deep-sea technology, and aerospace in the coming years [4] - The tourism, modern services, high-tech industries, and tropical agriculture sectors have increased their contribution to the province's GDP by 13.7 percentage points over five years, now accounting for 67% of the total [3] Regulatory Framework - The operational model of "one line" open and "two lines" controlled will characterize the closure operation, facilitating easier international connections while managing domestic regulations [5][6] - Customs procedures will be streamlined, reducing the number of declaration items for exports from 105 to 42, enhancing efficiency [7] Tourism Development - Hainan aims to accelerate the construction of an international tourism consumption center, promoting new cultural and tourism consumption experiences [9] - The province will create a safe and enjoyable tourism environment, ensuring comprehensive coverage of consumer protection services [9] Future Outlook - The closure operation is expected to generate new momentum and vitality for Hainan, establishing it as a significant gateway for China's new era of openness [11]

Group 1 - The Hainan Free Trade Port is set to officially start its full island closure operation on December 18, with related policies to be released on the same day, which is expected to bring significant benefits to both domestic and foreign enterprises [1][2] - After the full closure, the proportion of "zero tariff" imported goods under the "first line" will increase from 21% to 74%, and there will be open arrangements for certain currently prohibited and restricted imported goods [1][2] - The full closure policy is seen as systematic and enhances the operational feasibility of the "zero tariff, low tax rate, and simplified tax system" policy framework, which is expected to encourage companies to invest in Hainan [1][2] Group 2 - The implementation of a negative list management for "zero tariff" imported goods will significantly reduce compliance costs for cross-border e-commerce companies, allowing for more flexible inventory adjustments [2] - Key parks in the Hainan Free Trade Port will also benefit from the full closure, with logistics and supply chain costs being reduced due to the exemption of import taxes on goods traded between enterprises within the island [2] - The policy aligns with expectations for trade liberalization and facilitation, promoting a more relaxed management approach under the principle of "everything not prohibited is allowed" [2] Group 3 - Foreign shipping companies, such as Hainan Xinle Shipping Co., Ltd., are expected to see a significant reduction in operational restrictions post-closure, allowing for adjustments in fleet size based on market conditions [3]

Core Viewpoint - The announcement of the full island closure operation of Hainan Free Trade Port by the State Council signifies a major step towards high-level trade liberalization and facilitation, aiming to establish Hainan as a special customs supervision area by the end of this year [1][3][5]. Group 1: Policy Framework - The full island closure will implement a management model of "one line open, one line controlled, and free within the island," allowing zero-tariff goods to move freely between Hainan and other countries while maintaining strict controls with the mainland [3][5]. - The policy aims to balance the release of openness and the maintenance of security, marking a critical advancement in China's high-level opening-up process [3][5]. Group 2: Economic Impact - Hainan, as China's largest economic special zone, is positioned to serve as a testing ground for national reform and opening-up, with the full island closure expected to significantly enhance its high-quality development [5][7]. - Over 200 supporting policy documents have been issued since the initiation of the Hainan Free Trade Port, promoting rapid development in tourism, modern services, high-tech industries, and tropical agriculture [7][9]. Group 3: Trade Facilitation - The introduction of a "prohibited and restricted import/export goods list" will clarify which goods can enter the Hainan Free Trade Port, streamlining customs processes and enhancing trade efficiency [7][11]. - The number of goods eligible for zero-tariff policies is set to increase from approximately 1,900 to about 6,600, significantly expanding the scope of zero-tariff benefits [11][13]. Group 4: Infrastructure and Logistics - The establishment of new "second line" ports, such as Haikou New Port and South Port, will facilitate efficient passage of goods and personnel between Hainan and the mainland [13][14]. - Advanced data analytics and smart regulatory systems will be employed to ensure efficient customs operations while maintaining security [13][16]. Group 5: Industry Development - Policies encouraging processing and value-added production within Hainan will allow companies to benefit from tax exemptions when exporting processed goods to the mainland [14][16]. - The collaboration between local enterprises in the chemical and industrial sectors exemplifies the potential for enhanced value creation through policy incentives [16][18]. Group 6: Societal Benefits - New tax policies for residents and adjustments to duty-free shopping are being planned to ensure that the benefits of the new policies reach the general public [18]. - The full island closure is viewed as a systemic transformation that integrates regulation, industry, and public welfare, enhancing Hainan's role in the global supply chain [18].

Core Points - The Hainan Free Trade Port will officially start its full island closure operation on December 18, 2023, as announced by the National Development and Reform Commission [1][3] - The choice of December 18 is symbolic, marking the anniversary of the 1978 Third Plenary Session of the 11th Central Committee, which initiated China's reform and opening-up [3] - The closure is intended to enhance international connectivity and attract global quality resources, promoting high-quality development of the Hainan Free Trade Port [3] Policy Measures - Implementation of a more favorable "zero tariff" policy, increasing the proportion of zero-tariff goods from 21% to 74% for "first-line" imports, allowing tax-free circulation among eligible entities on the island [3][4] - Introduction of more relaxed trade management measures, with open arrangements for certain currently prohibited or restricted imports [3] - Establishment of more convenient passage measures, utilizing existing open ports and creating ten "second-line" ports to facilitate the entry of goods into the mainland [3][4] - Adoption of a more efficient and precise regulatory model for zero-tariff goods and relaxed trade management goods, ensuring smooth implementation of the open policies [4]

Core Viewpoint - The official announcement of the specific date for the Hainan Free Trade Port's customs closure is set for December 18, 2025, marking a significant milestone in the expansion of openness and the development of the Hainan Free Trade Port [1][3]. Summary by Sections Customs Closure Policy - The customs closure will transform Hainan Island into a special customs supervision area, implementing a policy characterized by "one line open, one line controlled, and free flow within the island" [1][2]. - The "one line" refers to the open trade between Hainan and other countries, while the "two line" involves precise management of trade with the mainland [1][2]. Policy Measures - The customs closure will introduce four key enhancements: 1. A more favorable "zero tariff" policy for imported goods, increasing the proportion of zero-tariff items from 21% to 74% [2]. 2. More relaxed trade management measures, allowing for open arrangements for certain previously restricted imports [2]. 3. More convenient passage measures through eight designated "one line" ports and ten "two line" ports for efficient cargo movement [2]. 4. A more efficient and precise regulatory model to ensure smooth implementation of the open policies [2]. Symbolic Significance - The choice of December 18 for the customs closure is symbolically significant, aligning with the anniversary of China's reform and opening-up policy initiated in 1978, showcasing the country's commitment to high-level openness [3][4]. - The customs closure is seen as the beginning of a new phase in the development of the Hainan Free Trade Port, with ongoing efforts to enhance the policy framework and expand openness [3][4]. Operational Continuity - Post-closure, most goods, personnel, and transportation will continue to be managed under existing regulations, ensuring that travel and business operations in Hainan remain unaffected [4].

Core Viewpoint - The establishment of the Hainan Free Trade Port (FTP) is a significant milestone in China's efforts to expand its openness and implement a series of liberalization and facilitation policies, with the full closure operation set to officially start on December 18, 2025 [2][4]. Group 1: Policy Framework - The Hainan FTP will implement a policy characterized by "one line open, two lines controlled, and free flow within the island," facilitating the movement of goods, services, and people [2]. - A preliminary policy system has been established, allowing visa-free entry for personnel from 85 countries [3]. Group 2: Specific Measures - The current closure policy measures can be summarized as "four more": 1. More favorable "zero tariff" policies, increasing the proportion of zero-tariff goods from 21% to 74% for imports [5]. 2. More relaxed trade management measures, allowing open arrangements for certain previously restricted imports [5]. 3. More convenient passage measures, utilizing existing open ports and introducing new ones for efficient import and export [5]. 4. More efficient and precise regulatory models to ensure smooth implementation of open policies [5][6].