Doing Business in Hainan FTP
China's largest Free Trade Port - zero-tariff, low CIT (15%), and a globally open investment regime rolling out through 2025-2035.
Why Hainan FTP?
Free Trade Port: 15% CIT and 15% top IIT (vs 25%/45% national)
Zero-tariff on imported production equipment and consumer goods
Most open negative list in China for foreign investment
Key Industries
GDP
0.68 trillion RMB
FDI
2.5 billion USD
Setup time
20-30 days
Pros & Cons
✓ Advantages
- •Most preferential policies
- •15% CIT rate
- •Duty-free imports
✗ Challenges
- •Smaller market
- •Limited talent
- •Infrastructure developing
Hainan FTP Policies
Hainan FTP — Zero-Tariff Expanded + Offshore Headquarters Incentive 2.0
Hainan Free Trade Port expanded its zero-tariff policy to cover all production equipment and raw materials (previously limited to select categories). A new "Offshore Headquarters 2.0" incentive offers qualified multinational regional headquarters 5% effective CIT rate and full foreign exchange convertibility within the FTP.
Hainan Free Trade Port Full-Island Customs Operations
On December 18, 2025, Hainan became the world's largest free trade port with the commencement of full-island customs operations. The island is now designated as an independent customs zone operating under a "domestic yet offshore" framework, featuring broader tariff exemptions and simplified cross-border capital movements.