The implementation of the Hainan Free Trade Port (FTP) Law has yielded positive results, with island-wide special customs operations progressing steadily, according to a law enforcement inspection report submitted to the 25th session of the Standing Committee of the 14th National People's Congress (NPC) on November 3.

The report, from an inspection team of the NPC Standing Committee, said the Hainan FTP's role in promoting opening up and cooperation has become increasingly evident, with its demonstration effect continuing to grow.

Hainan FTP's law-based environment has continued to improve, with a preliminary policy and institutional framework in place, according to the report.

South China's island province of Hainan formulated a special plan for supporting regulations for the Hainan Free Trade Port Law for the 2021-2025 period and introduced 60 regulations, including those related to intellectual property protection and fair competition.

The province has established a free trade port intellectual property court and an international commercial dispute resolution center, advanced reforms in ad hoc arbitration and commercial mediation, and put in place a one-stop, diversified dispute resolution mechanism integrating mediation, arbitration and litigation.

The report noted that difficulties and problems remain in implementing the law and the mechanisms for trade liberalization and facilitation. To further advance the implementation of the law, it proposed recommendations in four areas, including improving the policy and institutional framework, further unlocking the benefits of fiscal and tax reforms, optimizing the development environment, and strengthening institutional safeguards.

In June 2021, China adopted the Hainan Free Trade Port Law, which stipulates that the development of the port should focus on trade and investment liberalization and facilitation, be supported by the free, orderly, safe and convenient cross-border flows of various factors of production and a modern industrial system, and be underpinned by special tax arrangements, an efficient social governance system and a comprehensive system for the rule of law.

On December 18, 2025, China launched island-wide special customs operations in the Hainan Free Trade Port, expanding the share of tariff lines eligible for zero-tariff treatment on qualifying imports from 21 percent to 74 percent. Goods shipped onward from Hainan to the Chinese mainland remain subject to separate customs controls.