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Hainan Free Trade Port: New Trade Facilitation Measures for Foreign Founders

China’s Ministry of Commerce and other agencies issued a notice to further liberalize and facilitate trade in the Hainan Free Trade Port. This article summarizes the key measures relevant to foreign entrepreneurs and provides practical guidance for registering and operating a company in China.

Hainan Free Trade Port: New Trade Facilitation Measures for Foreign Founders

Foreign founders considering establishing a presence in China’s Hainan Free Trade Port should take note of a recent joint notice from the Ministry of Commerce, the National Development and Reform Commission, the Ministry of Ecology and Environment, and the General Administration of Customs. The notice, issued on October 9, 2026 (document number 商自贸发〔2026〕187号), outlines further steps to improve trade liberalization and facilitation in the Hainan Free Trade Port. While the original text is aimed at government bodies, it contains several practical implications for foreign-invested enterprises (FIEs) and entrepreneurs.

Key Measures for Goods Trade

The notice includes specific measures to streamline goods trade. For instance, aviation kerosene entering bonded storage facilities in the Hainan Free Trade Port for re-export will be inspected according to international standards. In the Yangpu Economic Development Zone, bonded warehouses and export supervision warehouses storing gasoline, kerosene, diesel, fuel oil, and naphtha will be integrated under a new regulatory model that allows flexible capacity allocation and dynamic use. Additionally, once liquefied natural gas (LNG) futures are listed, Hainan will support delivery warehouse operations for LNG futures, and bonded delivery may use energy metering. Foreign enterprises will also be allowed to use bonded facilities at LNG receiving terminals in Hainan. These measures reduce logistical hurdles for energy-related businesses.

Facilitation of Trade in Services

For service providers, the notice offers several openings. Foreign physicians with legal practicing rights abroad may be invited, employed, or apply to engage in clinical diagnosis and treatment in Hainan, with a maximum practice license validity of three years, extendable upon expiry. The administrative licensing for foreign institutions co-hosting international economic and technical exhibitions will be delegated to the Hainan Provincial Department of Commerce, except for events using names like “China,” “Chinese,” “National,” or “State.” Hainan will enact local regulations to provide supporting supervision. Moreover, the notice supports optimizing domestic trade credit insurance services and encourages both domestic and foreign trade enterprises to insure domestic trade risks. Insurance products for international transport and bonded maintenance will be enriched, and service trade underwriting models will be innovated. Hainan will also dynamically improve its list of recognized overseas professional qualifications, allowing foreign talents with such qualifications to participate in professional title evaluations. Entry and stay policies for foreign personnel will be further facilitated.

Innovative Trade Models and New Business Formats

The notice encourages the development of offshore trade, with improved data and information sharing among departments. It permits products from bonded remanufacturing in customs special supervision areas of Hainan to enter domestic free trade zones, with import duties, VAT, and consumption tax levied accordingly, provided they meet technical requirements for equivalent new products and are labeled as “remanufactured products.” The catalogue for “two-end-outside” bonded maintenance will be expanded, with Hainan conducting its own comprehensive assessments for projects within the national catalogue. Cooperation with Hong Kong will be deepened, exploring alignment of rules and mechanisms, and enhancing synergy with the Guangdong-Hong Kong-Macao Greater Bay Area.

Practical Implications for Foreign Founders

These measures signal a more open and efficient environment for foreign businesses in Hainan. For founders registering a company in China, particularly in sectors like energy, healthcare, exhibition services, and logistics, the new rules may reduce barriers and operational costs. However, navigating the specific requirements—such as licensing for medical practice or exhibition co-hosting—still demands careful attention to local regulations. It is advisable to consult with local authorities or professional advisors to ensure compliance and to leverage these opportunities effectively. Hainan’s ongoing policy innovations make it a dynamic option for foreign investment, but success requires staying informed about implementing details and maintaining robust risk management, as emphasized in the notice.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.