Good news! This could be huge! When communists experiment with laissez faire, laissez passer capitalism!
"“China on Thursday split off a Belgium-sized island with an economy comparable to a mid-sized country from the mainland for customs processing, part of a bid to join a major trans-Pacific trade deal and establish a new Hong Kong-style commercial hub.
Officials hope that turning the southern province of Hainan into a duty-free zone will spur foreign investment, with goods that achieve at least 30% local value add able to move on into the world’s second-largest economy tariff-free. Foreign firms will also be able to operate in service sectors that are restricted on the mainland. ..."
"... As of December 2025, new laws came into effect making Hainan a separate customs zone and consolidating a favorable regulatory environment in the southernmost province of China. ...
Hainan is now effectively the world's largest free trade port by area. Encompassing over 35,000 square kilometers, it is roughly fifty times bigger than Singapore and even slightly bigger than Belgium. ...
The province comprises Hainan Island and various smaller islands in the South China Sea, and now operates under a “two-line” customs system designed for greater openness while maintaining domestic security.
The first line marks the boundary between Hainan and the global economy, where most trade barriers have been removed. Under the new legislation, the majority of goods can enter the province freely, with a significantly expanded list of zero-tariff imports covering raw materials, equipment and consumer products.
The second line functions as a filter between Hainan and mainland China. There, standard customs rules apply, with goods subject to tariffs and controls intended to protect domestic markets. ...
For example, Australian beef can be imported into Hainan duty-free. Then, if the beef is sliced and packaged for China-destined hotpot products on the island province itself, it can enter mainland Chinese supermarkets with the same exemptions. ...
Foreign companies can also open special bank accounts in Hainan, with capital flows exempt from mainland foreign-exchange controls, while foreign universities are permitted to establish campuses without a Chinese partner.
Visa-free entry to the province has also been expanded from 59 to 86 countries, now including the United States, Germany and Australia, as well as several countries in the Middle East and South America. ..."
China bets on province the size of Belgium to reshape global trade "The Chinese Communist Party has officially turned the island province of Hainan into a free trade port, one of the government's most ambitious economic experiments to date."
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