Core Viewpoint - The official launch of the Hainan Free Trade Port's full island closure operation marks a new phase in China's efforts to build a high-level open economy, with significant progress in attracting foreign investment, institutional innovation, international cooperation, and optimizing the business environment [1] Institutional Innovation - Hainan has established 173 cases of institutional innovation, with 82 recognized at the national level and 37 promoted nationwide, focusing on trade, investment, and environmental management [2] - Notable innovations include the first national negative list for cross-border service trade and the establishment of a provincial-level business environment construction department [2] Foreign Investment Growth - Hainan's foreign investment has shown a positive trend, with actual foreign capital utilization reaching 166.7 billion yuan from 2020 to 2024, averaging a growth rate of 15.8% per year [3] - The number of zero-tariff items will increase from 21% to 74%, covering 6,637 items essential for production and processing [3] International Cooperation - Hainan has established partnerships with 40 foreign free trade zones, with trade volume projected to reach 277.89 billion yuan in 2024, doubling from 2020 [4] - The region has opened over 80 international passenger and cargo routes, enhancing connectivity with RCEP and Belt and Road Initiative countries [4] Smart Regulation - The customs authority will implement a "smart regulation" approach to ensure efficient management of goods, focusing on three categories: zero-tariff, relaxed trade management, and processing value-added exemptions [6][7] - A credit management system for foreign trade entities will be established to streamline customs processes and reduce inspection frequencies for certified companies [7] Continuous Dividend Release - Hainan aims to expand institutional openness and deepen reforms in key areas, including trade and investment facilitation, while enhancing the business environment [8][9] - The province will focus on building a modern industrial system, promoting innovation in tourism, high-tech industries, and sustainable agriculture [9]

Core Insights - The article emphasizes the growth and effectiveness of China's Free Trade Zones (FTZs) as a significant strategy for reform and opening up during the 14th Five-Year Plan period, with nearly 200 institutional innovations achieved across 22 FTZs [1][2] Group 1: Achievements and Innovations - The FTZs have implemented a series of landmark measures, including negative lists for foreign investment and cross-border service trade, which have improved the business environment and stimulated open development [2] - By 2024, the share of foreign trade and foreign investment from FTZs is projected to reach 19.6% and 24.3% of the national totals, respectively, indicating accelerated release of innovation dividends [2] Group 2: Differentiated Exploration - Each of the 22 FTZs has unique resources and geographical characteristics, allowing for tailored explorations of reform, such as Zhejiang focusing on bulk commodities and Jiangsu and Shandong on biomedicine and marine economy [2] Group 3: High Standards and Future Directions - FTZs in Shanghai and Hainan have aligned with international high-standard trade rules, launching over 110 pilot measures across key areas like trade, investment, and environmental protection, which are expected to enhance economic growth [5] - The Ministry of Commerce signals a commitment to further explore beneficial reforms and enhance the quality of the open economy during the 15th Five-Year Plan period [5]