The official launch of island-wide special customs operations of the Hainan Free Trade Port (FTP) is scheduled for December 18, 2025. With their launch just days away, we welcome Dr. Su Jian, a professor at Peking University’s School of Economics and director of its National Center for Economic Research, to Haikou for an exclusive interview to get his take on the FTP's role in China's and the global economy.

Hainan has become a link between China's economy and the global economy

Wang Xiaotong (W): The island-wide special customs operations of the Hainan FTP will commence on December 18. You have visited Hainan multiple times and recently conducted field research in Haikou, Sanya, and other places. What new changes have you noticed in the FTP's development during your trip?

Su Jian (S): The changes are significant. First, the infrastructure has undergone considerable improvement. Second, in terms of institutional framework, systems such as "zero tariffs" are largely in place. This time, we specifically visited the second-line customs port (which handles goods flowing from Hainan into the Chinese mainland). It takes no more than 15 minutes for a truck to pass through customs inspections at these ports, which is incredibly time-efficient. Transportation and communications infrastructure have also been properly established.

W: You once stated that Hainan is the "finishing touch" of China's macroeconomic development. After the launch of island-wide special customs operations, what role do you think the Hainan FTP can play in China's overall economic development?

S: It is the "finishing touch" and will play a leading role in China's future economic development. The country now needs a new round of opening-up, and Hainan is a pioneer in this process. On November 6, Chinese President Xi Jinping, while receiving a briefing on the FTP's progress, emphasized that Hainan needs to strengthen coordinated development with the Guangdong-Hong Kong-Macao Greater Bay Area, deepen inter-regional cooperation with the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Yangtze River Economic Belt, deeply integrate its development with that of the Belt and Road Initiative, and play a leading role in advancing high-level opening up.

After the launch of island-wide special customs operations, the Hainan FTP will play the following roles in China's economic development. First, it will serve as a leading gateway of China's opening-up in the new era. The key to positioning the FTP as a leading gateway of China's opening-up in the new era is to create a new highland of opening-up with higher levels of openness, a better business environment, and more substantial ripple effects through the implementation of higher-level opening-up policies. Its policy advantage lies in the fact that with the launch of island-wide special customs operations, Hainan will implement a more liberal and convenient policy system characterized by "freer access at the first line, efficient control at the second line, and free flow within the island," further relaxing trade and investment access restrictions, and enhancing the liberalization and facilitation of trade and investment. The construction of the Hainan FTP will significantly strengthen China's status and influence in the global economic governance system and make important contributions to promoting the development of an open world economy.

Second, it serves as a strategic hub for advancing domestic and international dual circulation. In fact, Hainan has become a link between China's economy and the global economy. Following the implementation of island-wide special customs operations, Hainan will be better positioned to leverage this advantage, facilitating the free flow and optimal allocation of domestic and international resources, as well as the integrated utilization of factors from both domestic and international sources in Hainan. In terms of trade and investment, the Hainan FTP will attract more domestic and global enterprises, promote the liberalization and facilitation of trade and investment, and foster deeper integration of domestic and international markets.

Third, it is a highland for institutional opening-up. In terms of rules, the Hainan FTP will actively align with and pilot high-standard international economic and trade regulations. In terms of innovation, it will adopt innovative practices in trade and investment, cross-border capital flows, the free and convenient movement of personnel and transportation, as well as the safe and orderly flow of data, providing pioneering experience for deepening reforms and expanding opening-up nationwide.

Additionally, in terms of participating in global governance, the Hainan FTP will enhance China's nodal position in global resource allocation through institutional openness, providing strong support for China's participation in global governance and economic and trade cooperation.

Fourth, it serves as a demonstration zone for a modern industrial system. In constructing an industrial system, the Hainan FTP will focus on developing a modern industrial system that leverages Hainan's unique characteristics and strengths. In developing new-quality productive forces, Hainan will guide industrial development in a high-end, intelligent, and green direction through the introduction and cultivation of high-end industries and innovative elements.

Leveraging Hainan's unique endowments to develop new-quality productive forces

W: In recent years, Hainan has "pursued strength in five key areas" as it strives to build itself into a vital proving ground for new-quality productive forces. During the briefing he received on the Hainan FTP's progress on November 6, President Xi Jinping required Hainan to "strive for new breakthroughs in developing new-quality productive forces." How can Hainan leverage its own advantages to achieve these breakthroughs?

S: First, it is essential to recognize Hainan's strengths. It has already summarized them quite well as the "three endowments (climate and temperature, ocean depth, and latitude) and green development." Looking to the future development of new-quality productive forces, especially in the commercial aerospace industry, Hainan already holds a particular advantage over the rest of China. It should be capable of catching up with internationally leading levels. In high-tech agriculture, Hainan's favorable climate conditions enable the development of various seed breeding sectors. "Nanfan" seed breeding is also a space for developing new-quality productive forces. There is also the green aspect. The Fourth Plenary Session of the 20th CPC Central Committee proposed "smart, green, and integrated industrial development." Hainan's green development is a crucial characteristic, given its exceptional ecological environment. Hainan's marine economy is another highly promising sector. The South China Sea has various resources that can be developed. Tourism there could become a significant industry, and seawater may become a critically important resource. Some have calculated that the energy from deuterium and tritium in one liter of seawater could be equivalent to hundreds of liters of gasoline, so we must look to the ocean for development.

Second, Hainan must deepen institutional opening-up and align with the international business environment. Regardless of the industry we develop or how we increase consumption, the business environment is the most crucial factor. In this regard, Hainan must further develop its institutional framework to create a market-oriented, law-based, and international business environment.

Third, Hainan must further integrate scientific and technological innovation with industrial innovation. It should attract the talent and enterprises required to develop relevant industries to achieve this integration.

Fourth, Hainan must strengthen its integration with the regional economy. It should find ways to connect with the Chinese mainland and closely link itself with the world economy and other parts of China's economy, especially with the Guangdong-Hong Kong-Macao Greater Bay Area.

Accelerating the formation of internationally influential service consumption brands

W: Building an international tourism consumption center is one of the strategic positions assigned to Hainan as part of the "Three Zones, One Center" initiative. How can the Hainan FTP leverage its unique policy advantages to increase openness in service sectors, such as duty-free shopping, education, and healthcare, and enhance the attractiveness of its service offerings?

Su: Here are some strategies that the Hainan FTP can adopt to leverage its unique policy advantages and enhance the attractiveness of its service offerings in areas such as duty-free shopping, education, and healthcare.

In terms of duty-free shopping, Hainan can enhance the quality and capacity of duty-free shopping by further optimizing relevant policies to turn itself into a global paradise for duty-free shopping. It needs to expand its consumer base and product range. It should also optimize the shopping experience, improve logistics efficiency, and introduce services like mail delivery to facilitate consumers.

In terms of educational services, Hainan needs to open up further to establish an international education innovation hub. On one hand, it should introduce high-quality overseas educational resources, promote the implementation of Sino-foreign cooperative education projects, and cultivate technical and skilled talents with an international mindset. On the other hand, it should establish a lifelong education system and develop a province-wide, data-driven public service platform for lifelong learning. In addition, Hainan should promote customized, project-based training models and establish industrial colleges in partnership with leading enterprises in key industrial parks to achieve a seamless connection between educational supply and industrial demand.

In terms of healthcare services, Hainan requires policy breakthroughs to establish itself as an international medical tourism destination. It should build an international medical platform to promote localized production by innovative pharmaceutical companies. It should introduce international medical technology and management expertise and develop high-end medical care, rehabilitation, health management, and other sectors to create a "healthcare + tourism" consumption ecosystem.

In terms of comprehensive supporting facilities, Hainan must optimize its service consumption environment, enhance the consumer experience, and promote the deep integration of consumption with exhibitions, events, and performances to foster an internationally influential service consumption brand.