Commentary: In a fragmenting world, China bets on openness

BEIJING, Dec. 18 (Xinhua) -- China's Hainan Free Trade Port (FTP) began island-wide special customs operations on Thursday. It sends a clear signal of China's determination to advance high-level opening-up and to anchor its growth more firmly in the global economy at a time when protectionism is resurging elsewhere.

This reality stands in sharp contrast to a recurring narrative in U.S. media of a "China Shock" impacting foreign markets through the Asian country's exports. Such claims overlook a basic fact: China's development has been inseparable from sustained opening-up, a voluntary expansion of market access, and active participation in global supply chains.

Rather than flooding overseas markets, China has been expanding access to its own markets, creating demand, lowering costs, and offering new avenues for growth across regions.

By aligning with international standards, lowering market access barriers, and testing institutional innovations in trade, investment, and financial liberalization, the FTP shows China's commitment not only to deeper integration into the global economy but also to sharing the benefits of that integration with other countries.

One of the most visible trade liberalization policies under the framework is the expansion of tariff lines with zero tariffs, whose share is expected to increase from 21 percent to 74 percent. The number of tariff-free items will increase from about 1,900 to around 6,600, covering nearly all production equipment and raw materials.

Streamlined customs clearance procedures, lower tax rates and a simplified tax system in the FTP also help foreign companies enter and operate in China's vast market more efficiently, while reducing trade costs.

Global investors stand to gain from a market-oriented, law-based and internationalized business environment that the Hainan FTP aims to build. In addition to a shortened negative list and stronger protection of property rights, Hainan will continue opening up sectors such as tourism, modern services, and new and high technology. Eligible enterprises and personnel in encouraged industries will enjoy preferential income tax rates that are highly attractive globally.

In contrast to many manufacturing-focused free trade zones, Hainan also places great emphasis on services, consumption and high-end industries, including key projects such as the Boao Lecheng International Medical Tourism Pilot Zone, which features over 30 top-tier domestic and international medical institutions; the regularly held China International Consumer Products Expo; and duty-free shopping complexes.

Hainan's location as China's southernmost province also gives it strategic relevance for regional connectivity. Its proximity to ASEAN economies and the broader Asia-Pacific region is expected to enhance logistical efficiency and facilitate more resilient and inclusive regional supply chains.

The real shock unsettling the global economy is not an open China. China's continued opening up, exemplified by the Hainan FTP, offers not disruption but stability. In an increasingly uncertain world, initiatives like the Hainan FTP point to a path of shared development rather than zero-sum confrontation.