Small businesses in S China's Hainan gain access to larger markets after launch of island-wide independent customs operations

This Spring Festival, the first one since the Hainan Free Trade Port (FTP) in south China's Hainan Province began independent customs operations, has been a busy time for local entrepreneurs.

Ye Ze Fang, a company specializing in coconut oil, shipped its products to Guangzhou in south China's Guangdong Province in December 2025. This marked the first time locally produced goods in Hainan were processed under value-added operations since the launch of island-wide independent customs operations in Hainan.

The company's factory is located in a village in southern Hainan. Leng Tingqiong, the company's head, said the business has grown from just two people to over 20, most of whom are local villagers working in roles such as sales, production, and e-commerce.

"We import a shipment worth about 40,000 yuan (approximately $5,813). At a 12 percent tariff rate, that translates into roughly 4,800 yuan in duty savings per shipment," said Zhou Fuqiong, also the company's head.

Based on the company's total annual import volume, that adds up to around 100,000 yuan in reduced costs each year. Zhou said the savings will be reinvested in developing new products and more.

Zhou Fuqiong makes coconut oil coffee. (People's Daily Online/Chen Yexin)

Xi Zhiqiang, head of Shang Nan Tang, a company that mainly produces Zhegu tea, a popular herbal tea in Hainan, described the launch of island-wide independent customs operations in Hainan as a prime opportunity. He said many business owners have approached him to learn more about relevant policies, adding that companies must plan proactively and make full use of favorable policies to achieve growth.

A farmer picks tea leaves at a Zhegu tea plantation in south China's Hainan Province. (Photo courtesy of the interviewee)

Xi has led his team in taking concrete steps to adapt to the changes. For example, they have developed a range of flavored tea beverages based on Zhegu tea. This year, construction of a Zhegu tea industrial park is set to begin.

Yan Hongping, a professor at Hainan University, said that policies related to independent customs operations have injected strong momentum into local businesses in multiple ways. These include zero tariffs on imported equipment, lower raw material costs, tariff-free sales of manufactured products to the mainland, improved connectivity with overseas markets, and support for traditional industries to scale up and pursue targeted transformation. The policies also provide institutional backing for small and medium-sized enterprises to achieve industrial upgrading.

Yang Yuping, head of a rattan craft company, said that Hainan's rattan weaving industry has gained greater exposure since the launch of island-wide independent customs operations. She was invited to attend the 2025 China International Travel Mart, which was held in December 2025 in Hainan for the first time. She noted that clients from countries including Vietnam and the U.S. purchased rattan weaving products on site and placed numerous orders at the event.

Photo shows a bamboo and rattan experience store in south China's Hainan Province. (People's Daily Online/Chen Yexin)