Foreign investors boost presence in Hainan following launch of island-wide special customs operations

TASS

Updated: 2026-06-24

Foreign companies have stepped up investment activity in the southern Chinese province of Hainan six months after the launch of island-wide special customs operations under the free trade port framework.

According to local authorities, from the launch of island-wide special customs operations on Dec 18, 2025, through the end of April this year, 1,016 new foreign-invested enterprises were registered in Hainan, marking a 35.5-percent increase compared with the same period last year. Experts noted that growing interest among foreign investors is driven by the incentives available within the free trade port, including an expanded list of goods exempt from import duties, a duty exemption mechanism for processed products with value added exceeding 30 percent sold to the mainland market, as well as the introduction of multifunctional free trade accounts.

An increasing number of overseas companies now view Hainan not only as a gateway to the Chinese market, but also as a regional hub for operations across the Asia-Pacific region.

Investment activity encompasses both major multinational corporations and medium-sized businesses. Following the launch of the free trade port regime, the first large-scale foreign-invested manufacturing project was established in the Yangpu industrial zone — a facility operated by Germany's Siemens Energy for the assembly and servicing of gas turbine equipment.

The development of high-tech industries is also gaining momentum. US company Parkton is investing 94.92 million yuan ($14 million) in the creation of a manufacturing and research center in Hainan dedicated to producing dental 3D materials and medical devices for the Chinese and broader Asia-Pacific markets.

More than 2,000 new companies have been registered in Haikou's Fullsing Internet Industrial Park since the island-wide special customs operations came into effect, with approximately 100 of them involving foreign capital. These enterprises are primarily engaged in international trade, business services, as well as scientific and technological innovation.

According to experts, foreign investors are gradually moving beyond taking advantage of individual tax incentives and are becoming more deeply involved in the development of industrial clusters. Provincial authorities have identified the aerospace industry, biomanufacturing, modern services, and a number of other high-tech sectors as priority areas for development.

Analysts pointed out that Hainan's future investment appeal will depend on further institutional reforms, the development of industrial value chains, and greater ease in the cross-border movement of capital, data, and highly skilled personnel. In their view, if the current policy course is maintained, the province has the potential to become one of the Asia-Pacific region's key international investment hubs.