The tide rises in the south of the sea, a new highland of openness.

At the northwestern tip of Hainan Island, the Haikou Xinhaigang port, like a roc poised for flight, calmly awaits the arrival of a historic moment.

On December 18, 2025, the Hainan Free Trade Port officially commenced island-wide customs closure operations.

This date holds special significance. On December 18, 1978, the Third Plenary Session of the 11th Central Committee of the Communist Party of China commenced, heralding the beginning of reform and opening-up.

“We have steadfastly followed the path of reform and opening-up with Chinese characteristics, step by step, to reach this point.” The planning, deployment, and promotion of the Hainan Free Trade Port’s construction have been personally overseen.

The journey to this point has been marked by bold exploration and unwavering commitment.

From the establishment of Hainan as China’s largest Special Economic Zone in 1988, to the solemn announcement of the vision to build a “Free Trade Port with Chinese Characteristics” in April 2018, to the new voyage of the Hainan Free Trade Port today, the timeline records the surging waves of China’s reform and opening-up, witnessing the door of openness opening ever wider.

The future we are stepping towards is filled with an open and inclusive mind and an unwavering determination.

The construction of the Hainan Free Trade Port has been written into the proposals for the 15th Five-Year Plan and included in the eight key tasks for next year’s economic work as outlined in the Central Economic Work Conference. The Free Trade Port, the highest-level form of openness in the world today, is taking root, sprouting, and thriving on this promising land of Hainan Island.

“In the past, our opening-up was about ‘catching up.’ Now, our opening-up aims to ‘lead the way.'”

This reflects the great power demeanor of resolutely managing our own affairs well and the strategic initiative of steadfastly expanding high-level opening-up. In this “historical process of step-by-step progression and continuous development,” an open China seizes opportunities and continues its endeavors.

Positioning—

“The strategic goal is to build the Hainan Free Trade Port into an important gateway leading China’s opening-up in the new era.”

The decision to build the Hainan Free Trade Port was a major strategic decision made with a view to comprehensively deepening reform and opening-up in the new era.

Early in his career, there was deep consideration given to free trade port construction.

In June 1985, a new role was undertaken in Xiamen as a member of the Standing Committee of the Municipal Party Committee and Executive Vice Mayor. In the same month, the State Council approved the expansion of the Xiamen Special Economic Zone to the entire island and the gradual implementation of certain free port policies.

How to fully, accurately, and thoroughly grasp and implement the central leadership’s intent, to run the special zone “faster and better”?

Based on in-depth investigation and research, leadership was provided in formulating the “Xiamen Economic and Social Development Strategy (1985-2000),” proposing a “three-step” strategic vision to build Xiamen into a “Free Port-type Special Economic Zone.” This was the initial exploration of a free port development path with Chinese characteristics.

Today, Xiamen has undergone earth-shaking changes, transforming from a small coastal defense town into a high-quality, aesthetically pleasing, modern, and international city.

Forging a “testing ground” for reform and opening-up in the new era.

On August 27, 2013, a meeting of the Political Bureau of the Central Committee heard a report on the preparations for the China (Shanghai) Pilot Free Trade Zone.

On September 29, 2013, China’s first Pilot Free Trade Zone—the Shanghai Pilot Free Trade Zone—set sail.

“The Shanghai Pilot Free Trade Zone is a large testing ground. We must sow good seeds, cultivate them meticulously, manage them carefully, expect a good harvest, and promote the experience of cultivating good seeds.” This was emphasized during an inspection in Shanghai in May 2014.

2018 marked the 40th anniversary of China’s reform and opening-up and the 30th anniversary of Hainan’s establishment as a province and special economic zone. Advancing reform and opening-up now demands greater depth and breadth than before.

“Support Hainan in gradually exploring and steadily advancing the construction of a Free Trade Port with Chinese Characteristics, establishing the policy and institutional system

Hainan Island

Hainan Island is China’s southernmost province, located in the South China Sea. Historically, it was often used as a place of exile during imperial dynasties, but it has transformed into a major tropical tourist destination and a key free-trade port in recent decades. It is also known for its unique indigenous Li and Miao ethnic cultures.

Haikou Xinhaigang port

Haikou Xinhaigang port is the primary seaport of Haikou, the capital of China’s Hainan province. It was historically a crucial trading hub on the Maritime Silk Road and has been significantly expanded and modernized since the 1980s to support Hainan’s economic development and international trade. Today, it serves as a major gateway for both cargo and passenger ferries connecting the island to mainland China.

Hainan Free Trade Port

The Hainan Free Trade Port is a major economic development zone established in 2020 on Hainan Island, China, with the goal of creating a globally influential free trade hub by the mid-21st century. It builds upon the island’s history as a special economic zone and is designed to offer extensive trade and investment liberalization, including reduced tariffs and streamlined customs. This initiative aims to integrate Hainan deeply into the global economy while boosting tourism and high-tech industries.

Special Economic Zone

A Special Economic Zone (SEZ) is a designated area within a country that operates under distinct economic regulations, such as tax incentives and reduced trade barriers, to attract foreign investment and boost industrial growth. The modern concept is often traced to Shannon, Ireland in 1959, but was popularized on a large scale by China’s establishment of the Shenzhen SEZ in 1980, which transformed it from a small town into a global manufacturing and technology hub. Today, SEZs are used by many developing and developed nations as a policy tool to stimulate exports, create jobs, and test market-oriented reforms.

Free Trade Port with Chinese Characteristics

The “Free Trade Port with Chinese Characteristics” refers to China’s pilot free trade zones and ports, such as Hainan, which are designed as high-level open economic platforms integrating trade, investment, and logistics. Historically, this concept evolved from earlier special economic zones, reflecting China’s ongoing economic reforms since the late 20th century to deepen global integration while maintaining distinct socialist market economy principles. These zones offer streamlined customs and favorable policies to boost international commerce and innovation.

Xiamen Special Economic Zone

The Xiamen Special Economic Zone (SEZ), established in 1980, was one of the first four SEZs in China created to attract foreign investment and pilot market-oriented reforms. Located in Fujian province, it transformed Xiamen from a modest port city into a major economic and trade hub, playing a pivotal role in China’s opening-up and modernization. Today, it is known for its vibrant economy, beautiful coastal scenery, and as a gateway for cross-strait exchanges with Taiwan.

China (Shanghai) Pilot Free Trade Zone

The China (Shanghai) Pilot Free Trade Zone (SHFTZ), established in 2013, is a groundbreaking economic reform area designed to test market liberalization and financial openness policies. It serves as a national testing ground for innovative trade and investment regulations, including simplified customs procedures and foreign investment management, before their potential rollout across China. Its ongoing expansion and reforms aim to position Shanghai as a premier global hub for trade and finance.

Shanghai Pilot Free Trade Zone

The Shanghai Pilot Free Trade Zone (SPFTZ), established in 2013, is China’s first and flagship free trade zone. It was created as a testing ground for major economic and financial reforms, including relaxed market access, streamlined administrative procedures, and liberalized financial services. Its ongoing expansion and innovations have made it a critical model for China’s broader opening-up and integration into the global economy.