Taiwan Security Monitor

Taiwan Affairs Office: Taiwan businesses and enterprises can share in the new development opportunities of the Hainan Free Trade Port.

At the December 17 press conference of the Taiwan Affairs Office of the State Council, a reporter asked: On December 18, the Hainan Free Trade Port will officially begin island-wide customs closure operations. This is a landmark step in the mainland’s unwavering commitment to expanding high-level opening-up and promoting the development of an open world economy, and it has attracted great interest from Taiwan businesses and enterprises. What opportunities and benefits will this bring to them?

Spokesperson Zhu Fenglian responded that beginning on December 18, 2025, the Hainan Free Trade Port will officially launch island-wide customs closure operations. This is a landmark measure demonstrating the mainland’s firm commitment to high-level opening-up and to fostering an open world economy.

After the customs closure, the Hainan Free Trade Port will fully implement the special regulatory framework of “free flow across the first line, effective control at the second line, and freedom within the island.” Tax incentives centered on “zero tariffs, low tax rates, and a simplified tax system” will fully release their benefits—reducing production costs, boosting development vitality, improving the quality of consumer supply, and supporting the creation of an international tourism and consumption center. At the same time, trade management will become more relaxed and convenient, regulatory practices more precise and efficient, and a series of innovative measures in areas such as trade liberalization, investment facilitation, and financial openness will bring more opportunities and advantages to Taiwan businesses and enterprises.

Taiwan-invested companies can leverage the institutional advantages of the Free Trade Port to expand their space for development in Hainan, achieve new growth, better integrate into the country’s new development paradigm, and share in the new opportunities presented by the Free Trade Port.