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

A practical guide for foreign founders on China's latest policy to improve trade liberalization and facilitation in the Hainan Free Trade Port, covering goods, services, and new trade models.

Hainan Free Trade Port: What Foreign Founders Need to Know About the Latest Trade Facilitation Measures

On October 9, 2026, China’s Ministry of Commerce, National Development and Reform Commission, Ministry of Ecology and Environment, and General Administration of Customs issued a joint notice (Shang Zi Mao Fa [2026] No. 187) to further enhance trade liberalization and facilitation in the Hainan Free Trade Port (Hainan FTP). The policy aims to build Hainan into a key gateway for China’s opening-up in the new era. For foreign founders considering company registration or operations in Hainan—or those already doing business there—these measures may affect your import-export activities, service offerings, and access to new trade models. Below is a factual summary of the key points, organized for practical reference.

Optimizing Goods Trade

The notice introduces several measures to streamline goods trade and reduce compliance burdens:

• Aviation kerosene inspection: Aviation kerosene entering Hainan FTP’s bonded storage facilities for re-export will be inspected according to international standards.
• 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 will be integrated. A new regulatory model—“two types of storage capacity, total volume approval, classified adjustment, dynamic use”—will be implemented.
• Auto R&D parts import pilot: A pilot program allows the import of faulty key components for automotive R&D and testing in Hainan FTP.
• LNG futures delivery: Once liquefied natural gas (LNG) futures are listed, Hainan FTP will support related delivery warehouse business, and bonded delivery may use energy measurement.
• Access to LNG facilities: Foreign enterprises are permitted to use bonded facilities at Hainan FTP’s LNG terminals.
• New barter trade: Hainan FTP will explore new types of barter trade in a prudent and orderly manner, with encouragement for RMB-denominated transactions.

These measures could benefit foreign founders involved in energy trading, automotive testing, or logistics, making it easier to manage storage, inspection, and trade settlement.

Facilitating Services Trade

The notice also addresses services trade, focusing on professional qualifications, exhibitions, and insurance:

• Foreign physician licensing: Foreign physicians with legal practicing rights abroad may be invited, employed, or apply to engage in clinical diagnosis and treatment in Hainan FTP. The practice license can be valid for up to three years and is renewable upon expiration.
• Exhibition approval delegated: The administrative approval 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 for supporting supervision; where inconsistencies exist with existing State Council decisions, procedures under the Hainan Free Trade Port Law will apply.
• Domestic trade credit insurance: Services will be optimized to support domestic and foreign trade enterprises in Hainan FTP to insure domestic trade risks, with increased underwriting support for integrated domestic and foreign trade.
• Insurance product innovation: In areas such as international transportation and bonded maintenance, insurance products will be enriched, service trade underwriting models innovated, and claims services optimized, all under controllable risks.
• Recognition of foreign professional qualifications: Hainan FTP will dynamically improve its list of recognized foreign professional qualifications, support foreign talent with such qualifications to participate in professional title evaluations, and expand recognition channels.
• Entry and residency facilitation: Further improve convenience for foreign nationals entering Hainan FTP, with more facilitative work permit and residence policies.

For foreign founders in professional services, healthcare, exhibition organization, or insurance, these measures may reduce barriers to entry and ease the hiring of international talent.

Innovating New Trade Models

The notice encourages new forms of trade and deeper regional cooperation:

• Offshore trade development: Accelerate offshore trade, enhance inter-departmental data and information sharing, and strengthen data and information services.
• Bonded remanufacturing: Products remanufactured under bonded operations in Hainan FTP’s customs special supervision areas may be shipped to domestic free trade zones, with import duties, import VAT, and consumption tax levied accordingly. Remanufactured products must meet all applicable technical requirements for equivalent new products and relevant regulations, and be labeled “Remanufactured Product” prominently. Advanced remanufacturing technologies for mechanical and electrical products will be promoted.
• “Two-end-outside” bonded maintenance: Hainan FTP will expand the catalog of “two-end-outside” bonded maintenance in due course. Projects within the national catalog will be subject to self-organized comprehensive assessment by Hainan Province, which bears primary responsibility. Qualified projects may operate in Hainan FTP.
• Cooperation with Hong Kong: Support deeper economic and trade exchanges and industrial cooperation between Hainan FTP and Hong Kong, explore rule alignment and mechanism connectivity, improve cooperation mechanisms focused on trade and investment, and enhance coordinated development with the Guangdong-Hong Kong-Macao Greater Bay Area.

These provisions may open opportunities for foreign founders in circular economy, offshore trading, and regional supply chain management.

Implementation and Compliance

The notice emphasizes that relevant units must uphold Party leadership, balance development and security, and implement policies effectively. Hainan provincial authorities are required to assume primary responsibility, refine task breakdowns, and establish risk prevention and control systems with whole-process supervision. For foreign founders, this signals that while facilitation increases, compliance and risk management remain critical.

Practical Takeaways for Foreign Founders

If you are considering setting up a company in Hainan FTP or expanding operations there, these measures could affect your business in several ways:

• Energy and commodities: New rules on warehouse integration and LNG facilities may simplify storage and trading.
• Professional services: Delegated exhibition approval and recognition of foreign qualifications could ease market entry.
• Healthcare: The three-year renewable license for foreign physicians facilitates hiring.
• Manufacturing and circular economy: Bonded remanufacturing and maintenance policies may support new business models.

As with any regulatory change, foreign founders should verify details with local authorities and professional advisors. ChinaMNC can assist with company registration, licensing, and ongoing compliance in Hainan and across China.

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.