Hainan’s customs closure marks a milestone in China’s high-level opening-up, signifying a new stage in the country’s pursuit of deeper and broader openness. Through institutional innovation, the closure establishes a special economic zone across the entire island of Hainan that operates under the principle of being “within the borders yet outside the customs territory,” thereby advancing trade liberalization and external openness.

At the national level, it serves as a crucial gateway for China’s new era of opening-up, a symbol of institutional openness, and a strong catalyst for globalization. For the public, it is expected to lower living costs while creating more employment and investment opportunities. It also brings significant development prospects for tourism, high-end services, and high-tech industries. Furthermore, the initiative facilitates both the “going global” and “bringing in” of enterprises, deepens international cooperation, and promotes the internationalization of the renminbi.

However, Hainan’s customs closure also faces challenges in risk prevention and institutional safeguards, underscoring the need to establish an effective and resilient risk control system.

Translated by Yijiao SHI

Full text in Chinese available at:

https://fddi.fudan.edu.cn/78/90/c21253a751760/page.htm