What does the closure of Hainan Island mean? Why should the whole island be closed?

On the evening of March 30th, # Hainan began to prepare for the island closure # and rushed to the top of the hot search list in Weibo. A phased goal facing the construction of Hainan Free Trade Port is to start the customs clearance operation on the whole island before the end of 2025.

So what exactly is customs clearance operation?

Customs clearance operation refers to the construction of a special area under customs supervision throughout Hainan Island. In this particular area, the concept of "customs clearance" can also be abbreviated as: first-line clearance, second-line control, and freedom on the island.

"First Line" refers to the connection between Hainan Free Trade Port and the whole world.

This means smoother connection with the world and freer and more convenient trade and investment policies on the island.

"Second Line" refers to the connection between Hainan Free Trade Port and the mainland.

It is to properly control Hainan Free Trade Port and the Mainland, with the purpose of ensuring the unification of national trade control policies and making a good connection with the tax gap in the Mainland. The objects of management are mainly goods, commodities and means of transportation, but the personnel exchanges with the mainland will not change.

After seeing this news, many people were in an uproar: Isn't Hainan a province of China? Why shut it down?

First of all, it must be clear that the "customs clearance" mentioned here is not to isolate Hainan, but more to clear the customs of goods and taxes.

In Hainan, a big free port, international goods can be imported and exported freely, and the relationship between Hainan and the mainland is the relationship between import and export. After customs clearance, Hainan will become a free trade port. At that time, enterprises, individual employment, shopping and tourism in Hainan Province will implement independent management and special preferential policies.

This means that the tax cost of imported goods will be greatly reduced, thus attracting more consumers to spend in Hainan Province.

Why is it self-evident that the whole island is closed?

On the one hand, the implementation of island-wide customs closure can introduce more high-quality goods to Hainan Province and improve the quality and competitiveness of goods on the island;

On the other hand, the island closure will also promote the trade between Hainan Province and domestic and foreign countries, and further expand Hainan's influence in the global market.

Therefore, the island-wide closure operation can promote the development of export-oriented economy in Hainan Province and promote the rapid economic growth in Hainan.

The development of Hainan Free Trade Port will undergo major changes, and what dividends will it bring?

Free flow of funds bonus?

Hainan will become an island with freely convertible RMB. It is mentioned in the Action Plan that "full convertibility will be gradually promoted to realize the free and convenient flow of cross-border funds", which indicates that Hainan will be a region with freely convertible RMB in the future, and funds can freely enter and leave the world.

Internet Global Open Bonus?

Hainan will become an open island of "Internet information freedom". This means that after "the whole island is closed", Hainan may form a global Internet opening pattern and become the third global Internet opening area in China after Hongkong and Macau.

Free admission bonus for personnel?

Hainan will become an island for foreigners, foreign capital, foreign enterprises and foreign commodities to flow freely. "Comprehensively improve the policy of facilitating entry, exit, work and residence", which not only allows foreigners to enter and leave Hainan freely, but also allows China and domestic enterprises to go to sea more freely.

Offshore trade and financial center bonus?

Hainan will become China's future "offshore trading center" island. This means that Hainan will be one of the three offshore trade centers in China in the future. The destination offshore trading center usually gathers a large amount of trade settlement funds, so it is also a regional financial center.

With the preparation of customs clearance in Hainan, the door of our opening to the outside world will open wider and wider, and a free and open Hainan will be displayed.