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Hainan Free Trade Port: New Trade Facilitation Measures for Foreign Founders
China’s Ministry of Commerce and other agencies issued a notice to further liberalize and facilitate trade in the Hainan Free Trade Port. This article summarizes the key points relevant to foreign entrepreneurs setting up or operating a business in China.
Hainan Free Trade Port: New Trade Facilitation Measures for Foreign Founders
Foreign founders considering China as a business location should note that the Hainan Free Trade Port (FTP) continues to develop its policy framework. On October 9, 2026, the Ministry of Commerce, the National Development and Reform Commission, the Ministry of Ecology and Environment, and the General Administration of Customs jointly issued a notice (Shang Zi Mao Fa [2026] No. 187) aimed at further raising the level of trade liberalization and facilitation in Hainan. The notice is part of efforts to build Hainan into a high-standard free trade port and an important gateway for China’s opening-up in the new era. Below we outline the measures that may be relevant for foreign entrepreneurs establishing or operating a company in China, particularly in Hainan.
Goods Trade Measures
The notice includes several measures to optimize goods trade. For aviation kerosene entering Hainan FTP from overseas, stored in independent bonded storage facilities within bonded supervision areas and intended for re-export, inspection will be conducted according to international standards. This could reduce compliance burdens for companies involved in aviation fuel logistics.
In the Yangpu Economic Development Zone, the government supports integrating bonded warehouses and export supervision warehouses that store gasoline, kerosene, diesel, fuel oil, and naphtha. A new supervision model will be implemented, featuring “two types of storage capacity, total volume approval, classified adjustment, and dynamic use.” This may offer more flexibility for storage operators.
The notice also allows a pilot program for importing faulty key auto parts for vehicle R&D and testing in Hainan FTP. This could benefit automotive companies conducting research and development in the region.
Once liquefied natural gas (LNG) futures are listed, Hainan FTP will support related business for LNG futures delivery warehouses and permit energy measurement for bonded delivery of LNG futures. Additionally, foreign enterprises will be allowed to use bonded facilities at LNG receiving stations in Hainan FTP. These measures aim to develop Hainan as an energy trading hub.
The notice also encourages the orderly development of new types of barter trade in Hainan FTP, with a preference for RMB pricing. This could create alternative trade mechanisms for companies facing currency or payment challenges.
Services Trade Liberalization
Several measures focus on facilitating services trade. Foreign physicians who have obtained legal medical practice rights abroad may be invited, employed, or apply to engage in clinical diagnosis and treatment in Hainan FTP. Their practice license can be valid for up to three years and may be renewed upon expiration according to regulations. This opens opportunities for foreign medical professionals.
Administrative licensing for foreign institutions co-hosting international economic and technical exhibitions will be delegated to the Hainan Provincial Department of Commerce, except for events using names such as “China,” “Chinese,” “National,” or “State.” Hainan will formulate FTP regulations to provide specific supporting supervision measures. Where these differ from existing administrative regulations, procedures under the Hainan Free Trade Port Law will apply. This could simplify approval processes for exhibition organizers.
The notice also calls for optimizing domestic trade credit insurance services, supporting both domestic and foreign trade enterprises in Hainan FTP to insure domestic trade risks, and strengthening underwriting support for integrated domestic and foreign trade. In international transport, bonded maintenance, and other areas, insurance products will be enriched, service trade underwriting models innovated, and claims services optimized, all under controllable risks.
Hainan FTP will dynamically improve its list of recognized overseas professional qualifications. Foreign talents with such qualifications will be supported in participating in professional title evaluations according to regulations, and channels for recognizing overseas professional qualifications will be expanded. This may help foreign professionals gain recognition for their credentials.
Furthermore, entry convenience for foreign nationals to Hainan FTP will be enhanced, with more convenient work permits and residence policies. This is relevant for foreign founders and employees who need to travel to or reside in Hainan.
New Trade Models and Formats
The notice promotes innovative trade models. It calls for accelerating the development of offshore trade, strengthening inter-departmental sharing of offshore trade data and information, and enhancing data and information services. This could support companies engaged in offshore trading activities.
Products from bonded remanufacturing within Hainan FTP’s special customs supervision areas will be allowed to enter China’s domestic free trade pilot zones, with import duties, import VAT, and consumption tax levied according to regulations. Such remanufactured products must meet all applicable technical requirements for equivalent new products and relevant remanufacturing regulations, and must be prominently labeled as “remanufactured products.” Advanced processes for remanufacturing mechanical and electrical products will be promoted. This may open opportunities for remanufacturing businesses.
Hainan FTP will be supported in expanding the “two-end-outside” bonded maintenance catalog as appropriate. For projects within the national catalog of “two-end-outside” bonded maintenance products, Hainan Province will organize comprehensive assessments and bear primary responsibility. Qualified projects can conduct related business in Hainan FTP. This could benefit companies offering maintenance services for imported goods that are re-exported.
Lastly, Hainan FTP will deepen economic and trade exchanges and industrial cooperation with Hong Kong, exploring rule alignment and mechanism connectivity, improving cooperation mechanisms focused on trade and investment, and enhancing coordinated development with the Guangdong-Hong Kong-Macao Greater Bay Area.
Implementation and Risk Management
The notice emphasizes that relevant units must uphold the overall leadership of the Party, balance development and security, and implement policies effectively. Hainan provincial authorities are required to fulfill their primary responsibilities, refine work mechanisms, decompose tasks, and ensure implementation. They must also establish a risk prevention and control system, strengthen whole-process supervision, and firmly hold the security bottom line.
Practical Implications for Foreign Founders
For foreign entrepreneurs looking to register a company in China or expand operations, Hainan FTP offers a growing set of facilitative policies. The measures on goods trade, services trade, and new trade models could reduce barriers and create opportunities in sectors such as energy, automotive R&D, healthcare, exhibitions, insurance, offshore trade, and remanufacturing. However, foreign founders should carefully review the specific requirements and consult with local authorities or professional advisors to ensure compliance. The notice indicates a continued direction toward greater openness and efficiency in Hainan FTP, which may be advantageous for foreign-invested enterprises.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.
For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.