Hainan: China on Thursday launched a separate customs regime island-wide in the Hainan Free Trade Port (FTP), the world's largest FTP by area, allowing the entry of overseas goods freely, state news agency Xinhua reported.

According to Anadolu Agency, the FTP area located in the southern island province of Hainan is roughly the size of Belgium. Foreign firms can now benefit from lower tax and production costs, using the island as a gateway to tap into the Chinese mainland market.

Officials describe the system as "freer access at the first line," enabling freer trade between Hainan and areas outside China's customs borders. Meanwhile, "regulated access at the second line" involves applying standard customs controls for goods moving from Hainan to the mainland.

The share of zero-tariff products in the Hainan FTP has been significantly increased from 21% to 74%, with the list of related items expanding from 1,900 to over 6,600. Zero-tariff goods processed in Hainan that achieve an added processing value of 30% or more can be sold to mainland China duty-free.

Hainan, which has a population of roughly 10 million, became China's largest special economic zone in 1988. Since 2020, the region has hosted more than 9,600 foreign-invested enterprises, according to official data. Over recent decades, China has established 22 pilot free trade zones, with the largest encompassing the entire Hainan Island, covering an area of 30,000 square kilometers.