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Hainan Goes Duty-Free: China's Trade Gambit
19 Dec
Summary
- Hainan Island is now a distinct customs zone and duty-free region.
- Foreign companies gain access to previously restricted sectors in Hainan.
- China seeks CPTPP free-trade deal accession alongside economic reforms.
Hainan Island has officially become a distinct customs zone and duty-free region, a significant economic shift for the popular tourist destination. This transformation allows foreign companies to operate within sectors that were previously inaccessible on mainland China, signaling a strategic move by Beijing to enhance commerce.
The initiative is directly tied to China's ambitions to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This effort underscores a broader trend of deepening international trade relationships, contrasting with rising protectionist sentiments in other parts of the world.
This economic opening in Hainan is designed to attract foreign investment and integrate China further into global trade networks. Other nations are also actively pursuing trade pacts, including Cambodia's application to join the CPTPP, and the EU's pursuit of agreements with India and South American blocs, alongside China's own negotiations with Gulf nations.
