China Opens More Sectors in Hainan Free Trade Port With 16 New Measures
The policy package expands opportunities in energy, medical services, bonded operations, logistics and cross-border trade while retaining licensing and tax requirements.
China has introduced 16 new measures to make it easier for foreign businesses and professionals to operate in the Hainan Free Trade Port, expanding opportunities in areas including energy trade, medical services, bonded operations and cross-border commerce.
The measures were announced in a government circular made public on Thursday, according to China's State Council information portal. The circular was jointly issued by the Ministry of Commerce, the National Development and Reform Commission, the Ministry of Ecology and Environment and the General Administration of Customs.
One of the measures allows foreign physicians who hold valid medical licences in their home jurisdictions to obtain permits to provide clinical diagnosis and treatment services in Hainan for up to three years, subject to relevant regulations and possible extensions. Authorities also plan to introduce more convenient procedures for foreign nationals applying for work permits and handling stay and residence arrangements.
The changes form part of China's broader effort to develop Hainan as an international trade and investment hub. Located in the country's southernmost island province, the Hainan Free Trade Port began island-wide special customs operations in December 2025. The framework allows freer entry of overseas goods, expands zero-tariff coverage and introduces other measures intended to facilitate business activity.
The new policies also address energy and logistics operations. Overseas companies will be allowed to use bonded facilities at Hainan's liquefied natural gas receiving terminals. The port will also be supported in conducting LNG futures delivery warehouse operations after LNG futures contracts are launched.
Other measures aim to promote offshore trade, expand the range of products eligible for bonded maintenance and facilitate the movement of eligible bonded remanufactured products into pilot free trade zones on the Chinese mainland. The circular also encourages the use of the yuan in new forms of barter trade and calls for deeper economic and trade cooperation between Hainan and Hong Kong.
Bonded remanufactured products entering mainland pilot free trade zones will still need to comply with applicable import tariffs, value-added tax, consumption tax and technical requirements. They must also be clearly labelled as remanufactured products, according to the official announcement. The measures therefore seek to facilitate certain business activities while retaining regulatory and product-compliance requirements.
The policy package follows strong trade growth in Hainan. Goods imports and exports reached 285.44 billion yuan, or about $42.5 billion, in the first three quarters of 2026, an increase of 49.8% from the same period a year earlier, according to provincial commerce authorities cited by the official report. Trade in services rose 11.7% to 56.95 billion yuan.
Trade in maintenance and repair services more than doubled year on year to 3.31 billion yuan during the period. The activity mainly involved imports of aircraft materials and components and revenues from aircraft maintenance services, the report said. These figures indicate that Hainan's role is expanding beyond conventional merchandise trade into specialised services and industrial support.
The number of newly established foreign-invested enterprises in Hainan increased 38.6% year on year in the first half of 2026, according to the State Administration for Market Regulation. The increase suggests continued interest from foreign businesses, although the number of new companies alone does not indicate the scale of investment, their long-term survival or the number of jobs created.
For international companies, the new measures may offer opportunities to use Hainan for logistics, maintenance, energy-related trade and certain professional services. Foreign medical professionals may also find a clearer route to providing services in the province, subject to licensing and other regulatory conditions.
However, the impact will depend on implementation. Companies will need to understand which operations qualify for bonded treatment, what documentation is required and which national or provincial rules apply. The actual benefits will also vary by industry, investment size and the ability to serve customers in Hainan and other markets.
China has promoted free trade zones and other opening-up initiatives as tools to attract foreign capital and develop higher-value services. Hainan's latest policy package is another attempt to improve the business environment through targeted regulatory changes.
The key test will be whether the measures lead to more commercial activity, stronger foreign investment and sustained growth in services exports. The announcement sets out new opportunities, but their long-term effect will depend on how efficiently businesses can use the new arrangements and how consistently the rules are implemented.