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

China’s Ministry of Commerce and three other departments 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 setting up or operating a business in Hainan, based solely on the official source.

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

On October 9, 2026, China’s Ministry of Commerce, National Development and Reform Commission, Ministry of Ecology and Environment, and General Administration of Customs jointly issued a notice (商自贸发〔2026〕187号) aimed at further enhancing trade liberalization and facilitation in the Hainan Free Trade Port (FTP). The notice outlines specific measures across goods trade, services trade, and new trade models. For foreign founders considering establishing or operating a company in Hainan, these measures may create new opportunities and simplify certain procedures.

This article summarizes the key points from the official notice, focusing on practical implications for foreign entrepreneurs. It is based solely on the published source and does not constitute legal or tax advice.

Goods Trade: Streamlined Procedures and New Business Avenues

The notice includes several measures to optimize goods trade in Hainan:

• Aviation kerosene inspection: Aviation kerosene entering independent bonded storage facilities within Hainan’s bonded supervision areas for re-export will be inspected according to international standards. This could reduce compliance burdens for companies involved in aviation fuel logistics and re-export.
• Bonded warehouse integration in Yangpu: In the Yangpu Economic Development Zone, bonded warehouses and export supervision warehouses storing gasoline, kerosene, diesel, fuel oil, and naphtha may be integrated. A new supervision model— “two types of storage capacity, total volume approval, classified adjustment, dynamic use” —will be implemented. This may offer greater flexibility for storage and blending operations.
• Vehicle R&D parts import pilot: A pilot program allows the import of faulty key components for vehicle R&D and testing in Hainan. Foreign founders in the automotive or mobility sector could benefit from easier access to components for testing and development.
• LNG futures delivery: Once liquefied natural gas (LNG) futures are listed, Hainan will support related delivery warehouse business and allow energy-based measurement for bonded LNG futures delivery. This could open opportunities for companies involved in LNG trading and storage.
• Foreign access to LNG facilities: Foreign enterprises are permitted to use bonded facilities at Hainan’s LNG receiving terminals. This measure may facilitate international LNG trading and storage activities.
• Barter trade: New types of barter trade will be carried out steadily and orderly in Hainan, with encouragement to use RMB for pricing. This could be relevant for companies exploring alternative trade arrangements.

Services Trade: Greater Flexibility for Professionals and Events

Several measures aim to liberalize services trade and ease the movement of professionals:

• Foreign doctor licensing: Foreign physicians with legal medical practice rights abroad may be invited, employed, or apply to engage in clinical diagnosis and treatment in Hainan. The practice license can be valid for up to three years and is renewable upon expiration according to regulations. This could benefit foreign healthcare professionals and medical institutions.
• Foreign-related economic and technical exhibitions: The administrative licensing for foreign institutions co-hosting foreign-related economic and technical exhibitions will be delegated to the Hainan Provincial Department of Commerce, except for events using names such as “China,” “Chinese,” “National,” or “State.” Hainan will formulate FTP regulations for supporting supervision measures. This may simplify procedures for organizing international exhibitions.
• Domestic trade credit insurance: Support will be given to Hainan’s domestic and foreign trade enterprises to purchase domestic trade insurance, with increased underwriting support for integrated domestic and foreign trade. This could help mitigate risks for companies selling both domestically and internationally.
• Insurance product innovation: Focused on international transportation, bonded maintenance, and other fields, insurance products will be enriched under controllable risks, and service trade underwriting models will be innovated. This may provide more tailored risk management options for service exporters.
• Recognition of foreign professional qualifications: Hainan will dynamically improve its list of recognized foreign professional qualifications and support foreign talents with such qualifications to participate in professional title evaluations according to regulations. This could ease the integration of foreign professionals into the local workforce.
• Entry facilitation: Further improvements will be made to facilitate the entry of foreign personnel into Hainan, with more convenient work permits and residence policies. This is particularly relevant for foreign founders and key staff relocating to Hainan.

New Trade Models: Offshore Trade, Remanufacturing, and Regional Cooperation

The notice also promotes innovative trade models:

• Offshore trade: Development of offshore trade will be accelerated, with enhanced inter-departmental data and information sharing. This could support companies engaged in offshore trading activities.
• Bonded remanufacturing: Products remanufactured in Hainan’s customs special supervision areas may be shipped out of the area and into domestic free trade zones, with import duties, import VAT, and consumption tax levied accordingly. Such products must meet all applicable technical requirements for equivalent new products and relevant remanufacturing regulations, and be marked as “remanufactured products.” Advanced processes for mechanical and electrical product remanufacturing will be promoted. This may open new opportunities for remanufacturing businesses targeting both domestic and international markets.
• “Two-end-outside” bonded maintenance: Hainan will expand its catalog of “two-end-outside” bonded maintenance products in due course. For projects within the national catalog, Hainan Province will organize comprehensive assessments and assume primary responsibility. Qualified projects can conduct related business in Hainan. This could benefit companies providing maintenance services for imported goods that are re-exported.
• Cooperation with Hong Kong: Hainan will deepen economic and trade exchanges and industrial cooperation with Hong Kong, explore rule alignment and mechanism connectivity, and improve cooperation mechanisms focused on trade and investment. This aims to enhance coordinated development between Hainan FTP and the Guangdong-Hong Kong-Macao Greater Bay Area. Foreign founders might find new partnership opportunities through these strengthened links.

Implementation and Risk Management

The notice emphasizes that relevant units must uphold Party leadership, balance development and security, and implement policies effectively. Hainan authorities are required to fulfill their primary responsibilities, refine work mechanisms, and establish risk prevention and control systems with full-process supervision to safeguard security. For foreign founders, this signals a structured approach to implementation, with an emphasis on risk management that may affect operational compliance.

Conclusion

The measures outlined in the notice are intended to further open Hainan’s trade environment and could offer foreign founders new opportunities in goods trade, services trade, and innovative business models. However, as with any regulatory changes, it is advisable to seek professional advice to understand how these measures apply to specific business activities.

Call to action: Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.

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