Business
China launches island-wide customs operations in Hainan free trade zone | The Express Tribune
Zero-tariff policies expanded to 74% of products as Beijing pushes economic openness amid rising global protectionism
China officially launched island-wide special customs operations in Hainan last week, marking a major milestone in its plan to create a world-leading Free Trade Port (FTP).
The move aims to open up the island’s economy and enhance its role as a hub for international trade and investment, even as global economic protectionism rises, spurred by US President Donald Trump’s tariff war. The new system will allow freer flow of goods, capital, services, and data across the island.
Hainan – an island once considered an underdeveloped frontier – has morphed into China’s largest special economic zone since 1988. The launch of the special customs operations is the culmination of years of effort to turn the island into a globally influential FTP, expanding zero-tariff policies and simplifying customs procedures to attract foreign businesses.
Read: Textile exports to China show sustained strength
The special customs zone – covering over 30,000 square kilometres – will operate under a dual system: “freer access at the first line” for goods entering the island and “regulated access at the second line” for goods moving from Hainan to the mainland. This streamlined system eliminates tariffs on imports entering Hainan and imposes duties only on goods transported to mainland China, offering major cost reductions for international trade.
Speaking at the launch ceremony in Haikou last week, Vice Premier He Lifeng stressed that this new phase of development aims to create a comprehensive, modernised economic structure. “This is a new step in advancing high-quality development and making Hainan a leading gateway for China’s opening-up in the new era,” he said.
The main feature of the new system is the extension of zero-tariff coverage, which has now expanded to 74% of products, up from just 21% in previous years. The number of goods eligible for zero-tariff treatment has grown from 1,900 items to over 6,600, benefiting industries such as pharmaceuticals, aerospace, food processing, and renewable energy.
Since the establishment of the FTP in 2020, more than 9,600 foreign-invested enterprises have been registered in Hainan, representing investors from over 170 countries. The province has also seen a nearly 20% rise in foreign trade companies in just the past year.
The launch comes at a critical time for China’s trade policies as many countries adopt more restrictive practices. China’s push for greater openness is expected to foster closer international ties, particularly with ASEAN countries, and encourage more foreign direct investment.
Hainan’s location in southern China, close to the Guangdong-Hong Kong-Macao Greater Bay Area, also provides a strategic advantage for trade and economic integration with Southeast Asia. Chi Fulin, President of the China Institute for Reform and Development, noted that the FTP represents China’s highest level of openness in the global economy. “It signals that China’s doors will not close but will open wider,” he said.
Read More: China hits EU dairy with tariffs
With lower import tariffs, industries can reduce input costs and enhance their competitive edge. The Boao Lecheng Pilot Zone, which focuses on healthcare services, has already seen strong growth due to preferential tax policies and duty-free imports of medical products. Tourism and cultural services are also expected to benefit from reduced operational costs.
China has established 22 other free trade zones across the country, but Hainan is uniquely positioned to experiment with more radical reforms in areas such as finance, cross-border data flows, and international trade. David Wu, CEO of Dun & Bradstreet China, highlighted the potential for Hainan to become a global data hub for digital economy development.
As an isolated island, Hainan offers a controlled environment where China can test new customs, tax, and financial policies before implementing them more broadly. By positioning itself as an internationally connected hub, the island aims to make it easier for businesses to access the Chinese market while providing China with a platform to expand its global economic influence.
New Delhi: India’s real GDP growth is projected at 7.4 per cent for FY26, up from 6.5 per cent in FY25, a report has said, highlighting seasonal pick up in electricity, mining and construction sectors. The report from ICRA said that growth is expected to ease below 7 per cent in H2 FY26 from 8 per cent in H1 because of an unfavourable base effect and moderation in exports.
The report expects a pause in the February 2026 policy review by the RBI, with future decisions to be guided by the FY27 Union Budget and evolving inflation-growth dynamics. Meanwhile, economic activity remained healthy in Q3 FY26, aided by GST rate‑cut led festive demand and seasonal upticks in some sectors.
ICRA expects consumption volumes of goods and services as well as manufacturing volumes to have benefited from GST cuts and festival demand in Q3, though the export drag may intensify in H2 unless a US trade deal materialises.
The firm forecasts CPI inflation to plunge to 2 per cent in FY26 from 4.6 per cent in FY25, with WPI at 0.4 per cent. CPI rose to 0.7 per cent in November 2025 from 0.3 per cent in October, due to a narrower deflation in food and beverages.
Additionally, mining and construction activity as well as electricity demand are set to witness a seasonal pick up in the coming months, after the easing owing to rainfall-related disruptions, it said. “Cement production is expected to grow 6.5–7.5 per cent in FY26. Steel demand growth may moderate to 7–8 per cent after strong previous years. Electricity demand growth is muted at 1.5–2 per cent for FY26,” the report noted.
It also flagged external risks including delay in the US-India trade deal, and global policy changes affecting service exports. Domestic risks encompass subdued export growth, monsoon variability, fiscal constraints, and inflationary pressures from commodity prices.
Natalie Bellin Bransholme, Hull
BBCFamilies living on a council estate say a new “social supermarket” will help them make ends meet.
The shop at North Bransholme Community Centre sells surplus food, with packs of fruit, vegetables and bread costing as little as 20p a time.
It can be used by anyone who lives in the area, receives means-tested benefits and applies for a free membership.
On its opening day this month, hundreds of people visited the store to buy food at about a third of the cost charged by most supermarkets, with bosses estimating it could save a family more than £200 a month.
Kirsty Armstrong, a mother of two, said the store took the pressure off the worry of doing a weekly food shop.
“Even though you work, it can still be really hard just to buy the simplest of things like fruit.
“I’ve spent about £6 and I’ve got bread, fruit and I am thinking about stuff in my basket that can be kept frozen.”
James Trott, 67, was one of the first customers through the doors and plans to use the shop regularly.
“It helps me out being on a pension because you’ve got your gas and electricity, water, rent and council tax to pay for and it’s really hard for everyone on the estate who is on benefits,” he said.
“I’ve just got a tin of beans for 60p, they would have been double in another shop.”
The store is the 15th of its kind to be opened across the UK by the Community Shop Group, a social enterprise.
Products are donated by food industry partners from surplus stock due to overstocking or seasonal packaging. All are still in use date.
Gary Stott, the executive chairman, said as well as supporting people in the Bransholme area, it was helping to tackle food waste.
“Surplus food does occur and we can take that in and we can relabel it and get that on sale,” Mr Stott said.
“We’ve got a retail store with 600 product lines where the average basket spend is about 30% of the retail price, and so as a family you can save £212 a month on your shopping bills.
“Even though we are a small convenience store, 30% of our basket is fruit and vegetables. That means families can come and make really healthy choices at an affordable price.”
The group said profits from the shop would be reinvested into a community hub, which aims to support members to learn new skills.
Meanwhile, a community kitchen and cafe sells breakfasts and lunches for £1.50, along with free children’s meals all year round.
Carol Redfern and her mum were among those enjoying refreshments.
She said: “To be able to come here and get quality food cheaper, it means a lot.
“My mum lives with me, she is disabled, so we are not on a lot of money.
“You can come here and have something to eat and the kids eating free is brilliant.”
Figures from Trussel, the anti-poverty charity, suggest more than 700,000 people in Yorkshire and Humber faced hunger in the past year due to a lack of money, with one in 10 people in the region living in households classed as “food insecure”.
David Daniels, who is 73 and receives disability benefits, described the community store as “a needs must in this day and age”.
“I think financially it will help a lot of people,” he said. “It takes away from food banks as well.
“People can pay reduced prices and you can get quality goods.”
Last Updated:
Net office absorption in NCR jumped 61% year-on-year in 2024, the sharpest increase among major cities, to touch 9.5 million sq. ft.
Of the $8.87 billion in real estate investments that entered India in 2024, global investors accounted for nearly two-thirds.
Delhi-NCR has entered a phase of commercial real estate activity that is beginning to stand apart even in an otherwise buoyant Indian property cycle. Over the past few years, the region has experienced rapid real estate growth, infrastructure development, and corporate expansion, attracting global capital at an unprecedented speed and scale. Institutional investors, pension funds, sovereign wealth entities, and private equity platforms treat NCR as one of Asia’s more reliable commercial markets, rather than a speculative bet.
The change is visible in the numbers: net office absorption in NCR jumped 61% year-on-year in 2024, the sharpest increase among major cities, to touch 9.5 million sq. ft. Despite substantial new supply, vacancy levels have eased 2.6% to 22.6%, while rentals across key micro-markets have strengthened by about 5% on average, with pockets like Noida Expressway and Golf Course Extension Road seeing a far steeper climb over the past five years. Prime retail assets tell a similar story, with vacancy in premium malls having slipped to 8.3%, and trading densities continue to rise.
This resilience explains why NCR has become a preferred deployment zone for foreign institutional investors. Of the USD 8.87 billion in real estate investments that entered India in 2024, global investors accounted for nearly two-thirds, and a disproportionate share found its way into Delhi–NCR’s office, retail, and mixed-use portfolios. Their interest is not episodic. Capital managers view NCR as a deep, maturing market, large enough to absorb sustained inflows without the volatility that characterized earlier cycles.
Mohit Goel, managing director of Omaxe Limited, said, “Global capital is showing unprecedented confidence in NCR’s commercial real estate, and we see this reflected strongly in emerging hubs like Faridabad and Dwarka, Delhi. Over the last two years, institutional investments in NCR’s Grade-A commercial and retail assets have risen by an estimated 30–35%, driven by stronger connectivity, infrastructure upgrades, and sustained demand from organized retail and new-age businesses. Our developments in Dwarka and Faridabad are directly benefiting from this momentum. Investors are now prioritizing long-term, stable, income-generating assets, a shift that underscores the structural transformation taking place in the NCR market.”
The momentum is driven by a combination of structural and cyclical factors. Multi-national companies are scaling their Global Capability Centres, which have evolved from back-office support roles to high-value engineering and digital functions. This shift has materially changed the nature of demand. NCR’s strong engineering workforce, proximity to decision-making centres, and established social infrastructure make it a preferred base for complex, high-skill GCC operations.
Sandeep Chhillar, founder and chairman of Landmark Group, said, “NCR has reached a maturity level where global investors feel comfortable committing long-term capital. The region offers depth, diverse occupiers, a large GCC presence, and rental resilience across cycles. What stands out today is the consistency of demand in office and retail assets. Infrastructure upgrades have unlocked several micro-markets, reducing risk and widening opportunity. Institutional investors recognize this stability, and that is why we expect inflows into NCR’s commercial assets to accelerate over the next few years.”
Another easily recognizable trend is the predilection for “return-ready” commercial assets. This inherently places NCR in pole position, given its sheer stock of Grade A assets. At rentals averaging INR 340 per sq. ft. per month in prime pockets, Delhi NCR is the APAC region’s sixth most-expensive office market with clearer income visibility than many competing Asian cities.
Ishaan Singh, director of AIPL, said, “What differentiates NCR today is the depth of its demand base. From Grade-A office occupiers to global retail brands, the region attracts tenants looking at long-term consolidation. This stability, supported by strong consumption and infrastructure, has made NCR very attractive for global capital. Quality assets will continue to outperform, and institutional investors are increasingly seeking exposure in Grade A projects. Moreover, we expect this momentum to sustain for a long time period.”
Mohit Batra, regional director of Realistic Realtors, said, “NCR’s commercial landscape is going through a structural transformation backed by growth in consumption, expansion by corporates, and a preference for organized retail formats. The market has demonstrated resilience even when global conditions were uncertain. The investor community sees footfall, spending power, and high-quality mixed-use developments coming together. As retail-led destinations become community meeting points and offices increasingly see experiential spaces, NCR presents an interesting case for long-term yield-driven investment.”
As per industry estimates, GCCs alone may lease 50-55 million sq. ft. nationally by FY27, with NCR capturing a significant share. Due to this, NCR is no longer competing with domestic markets alone; it is competing with regional Asian cities for capital, and increasingly, it is winning. Global funds are convinced that India’s multi-decade growth cycle has enough momentum to support long-tenure commercial returns. NCR, with its expanding corporate footprint and maturing urban form, finds itself at the centre of this shift, and there is little sign of the momentum cooling.
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December 27, 2025, 15:42 IST
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