[Text/Watchman Network Wang Kaiwen] While the United States insists on wielding the cudgel of trade protectionism, China has made a completely different choice.

"Hainan, as a Free Trade Port, shines brightly in the Trump tariff era," The Nikkei Asia reported on April 7 with this title, stating that China is committed to turning Hainan Province into a free trade port and medical tourism center, becoming an advanced front for attracting foreign investment, which contrasts sharply with US President Trump's protectionist policies.

Located in the tropics, Hainan has numerous beach resorts and is eager to attract more tourists. The report noted that currently, the annual tax-free shopping quota for departing travelers in Hainan has been raised to RMB 100,000 per person.

The Nikkei Asia mentioned that on a working afternoon in February, the duty-free shopping center in Sanya was crowded with people. A salesperson at a cosmetics store said that during the Spring Festival, the duty-free shops attracted many foreign tourists who used translation software or guides to assist them in shopping.

Hainan Sanya International Duty-Free City by China Travel Service

In addition to duty-free goods, Hainan also places great emphasis on medical tourism. The Boao Lecheng International Medical Tourism Pilot Zone in Qionghai City can import advanced overseas medicines and medical devices duty-free. Currently, this approximately 20-square-kilometer area has already accommodated 36 domestic and international medical institutions. Besides China's affluent population, it also attracts tourists from Indonesia, Singapore, and other regions.

In April 1988, the first session of the Seventh National People's Congress formally approved the establishment of Hainan Province and designated Hainan Island as an economic special zone. Hainan became the fifth economic special zone after Shenzhen, Zhuhai, Shantou, and Xiamen. The report pointed out that China utilized Hainan's geographical advantage of being located in the South China Sea and adjacent to Southeast Asian countries, positioning Hainan Island as a gateway for foreign trade and developing several ports.

Thirty years later, in October 2018, the State Council approved the establishment of the China (Hainan) Pilot Free Trade Zone. By 2025, Hainan will undergo full island customs operations. Prior to this, some imported goods have been exempted from import duties, import link VAT, and consumption tax; qualified enterprises and individuals have been granted tax reductions.

Hainan Auscar International Grain and Oil Co., Ltd., located in Yangpu Economic Development Zone, is one of the enterprises benefiting from these policies. The company imports soybeans and rapeseeds from Australia and Canada duty-free and processes them into edible oil for sale in China. The company's business scale is expanding year by year, with an expected output value of RMB 8 billion in 2025, representing over a 30% increase compared to 2024.

Hainan Hongyan Food Co., Ltd., which produces processed foods such as beef jerky, primarily imports raw materials from Brazil and Argentina. The company stated that its production costs are 6% lower than in other parts of China. Regarding Trump's tariffs, General Manager Yao Dafei said, "If Trump's tariffs impact trade between China and South America, we can import from Kazakhstan and Russia." It was reported that the company plans to export products to Muslim-populated Indonesia and the Middle East in the future.

The report also noticed that in recent years, Hainan's total foreign trade has grown rapidly. In 2024, Hainan's total foreign trade value reached RMB 277.65 billion, growing by 20%, ranking fourth nationwide and leading the national average for seven consecutive years.

The Association of Southeast Asian Nations (ASEAN) has been Hainan's largest trading partner for six consecutive years. In 2024, Hainan's total trade volume with ASEAN amounted to RMB 57.9 billion, increasing by over 60%.

Yangpu International Container Terminal, Hainan, June 19, 2023, Visual China

Trump's administration tried to end globalization and free trade with tariff wars, but it wasn't so easy.

The New York Times pointed out in an article on July 7 that although Trump's tariffs dealt a heavy blow to the existing order of global trade, their ultimate impact remains uncertain. Economists believe that the rise of free trade is irreversible, and the benefits it brings are so significant that even without core participants, the rest of the world will find ways to keep this system running.

"The importance and benefits of free trade are self-evident," Ban Ki-moon, Secretary-General of the United Nations and Chairman of the Boao Forum for Asia, said at the Boao Forum for Asia Annual Conference 2025 held in late March. He pointed out that transforming the entire province of Hainan into a free trade port is a bold move requiring vision and leadership, and it has proven to be the right choice.

"Over the past seven years, my colleagues and I have personally witnessed how Hainan has transformed and reshaped itself, from infrastructure services, tropical agriculture to high-tech industries. Hainan is becoming a powerful magnet attracting global talent, capital, and resources, as well as an emerging tourism, shipping, logistics, and financial hub," Ban Ki-moon said.

Foreign Ministry spokesperson Lin Jian previously stated that the Hainan Free Trade Port is a business card for China's new era of reform and opening-up. We welcome everyone to visit Hainan and personally experience the strength and warmth of China's reform and opening-up. We also welcome all parties to continue riding China's development express train, moving forward hand in hand with China's economy, and jointly striving for the modernization of peaceful development, mutual benefit, and common prosperity for all countries in the world.

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Original text: https://www.toutiao.com/article/7490533684920025634/

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