Hainan Free Trade Port expands trade ties with Thailand and Indonesia

China is advancing its Hainan Free Trade Port (FTP) initiative, an ambitious $113 billion project designed to serve as a major international trading gateway and a potential alternative to Hong Kong. The project establishes Hainan as a special customs zone, separating its operational system from mainland China. Under this new scheme, the proportion of goods eligible for tariff-free entry has increased from 21% to 74%, with the list of duty-free items expanding to over 6,600 categories.

To strengthen ties with Southeast Asia, a trade and economic delegation from Hainan recently completed a five-day visit to Thailand and Indonesia. In Bangkok, the Hainan-Thailand Economic and Trade Cooperation Promotion Conference was held, resulting in Memoranda of Understanding (MoU) between the China Council for the Promotion of International Trade (CCPIT) Hainan, the Hainan International Chamber of Commerce, and the Thai Chamber of Commerce.

The delegation also participated in the Thailand-China Cooperation Expo 2026, showcasing regional products such as coffee, coconut, and tropical agricultural goods. These efforts aim to leverage Hainan's strategic geographic position to integrate supply chains and deepen economic cooperation with ASEAN nations, including Indonesia.