פורסם · Israel

New Policy Eases Trade and Services in Hainan Free Trade Port for Foreign Founders

China’s Ministry of Commerce and three other agencies issued a notice to further liberalize trade in Hainan Free Trade Port. The measures cover goods trade, services, and new trade models, offering practical benefits for foreign founders operating or registering a company in China.

Overview of the Policy

The Ministry of Commerce, the National Development and Reform Commission, the Ministry of Ecology and Environment, and the General Administration of Customs jointly issued a notice (Shang Mao Fa [2026] No. 187) on October 9, 2026, aimed at raising the level of trade liberalization and facilitation in the Hainan Free Trade Port. The policy is part of efforts to build Hainan into a key gateway for China’s opening-up in the new era. For foreign founders considering company registration in China or already operating there, the notice introduces targeted measures across three areas: optimizing goods trade, facilitating services trade, and fostering new trade formats.

Optimizing Goods Trade

Several provisions directly affect import, export, and storage activities in Hainan. First, aviation kerosene that enters bonded storage facilities in Hainan from overseas and is used for re-export will be inspected according to international standards, potentially reducing compliance hurdles for re-export operations. Second, in the Yangpu Economic Development Zone, bonded warehouses and export supervision warehouses storing gasoline, kerosene, diesel, fuel oil, and naphtha can be integrated under a new regulatory model called “two types of capacity, total volume approval, classified adjustment, dynamic use.” This model is designed to make storage more flexible and efficient.

Third, a pilot program will allow the import of faulty key auto parts for vehicle R&D and testing in Hainan. Fourth, once liquefied natural gas (LNG) futures are listed, Hainan will support related delivery warehouse business, and bonded delivery of LNG futures may use energy measurement. Fifth, foreign enterprises will be permitted to use bonded facilities at LNG receiving terminals in Hainan. Sixth, new types of barter trade will be carried out in an orderly manner, with encouragement for RMB pricing. These measures collectively lower barriers for foreign companies involved in energy, automotive, and commodity trading.

Facilitating Services Trade

For service providers, the notice eases several restrictions. Foreign physicians who have obtained legal medical practice rights abroad may be invited, employed, or apply to conduct clinical diagnosis and treatment in Hainan. Their practice license can be valid for up to three years and can be renewed upon expiration according to regulations. This offers a clearer pathway for foreign medical professionals.

Administrative licensing for foreign institutions co-hosting international economic and technical exhibitions will be delegated to the Hainan Provincial Department of Commerce, which will also conduct effective supervision. Exhibitions with names containing “China,” “Chinese,” “National,” or “State” are excluded. Hainan will formulate local regulations to provide supporting supervision measures; where these differ from existing administrative regulations, procedures under the Hainan Free Trade Port Law will apply.

Domestic trade credit insurance services will be optimized, with support for both domestic and foreign trade enterprises in Hainan to purchase domestic trade insurance, strengthening underwriting support for integrated domestic and foreign trade. Insurance products will be enriched in areas such as international transport and bonded maintenance, with innovative underwriting models for service trade and improved claims services, all under controllable risks.

Hainan will also dynamically improve its list of recognized overseas professional qualifications, support foreign talent with such qualifications to participate in professional title evaluations, and expand recognition channels. Additionally, entry convenience for foreign nationals will be further enhanced through more facilitative work permit and residence policies.

Innovating Trade Models

The policy encourages new trade formats. Offshore trade development will be accelerated, with inter-departmental data and information sharing strengthened to improve data and information services. In customs special supervision areas of Hainan, products from bonded remanufacturing can be shipped to domestic free trade zones, with import duties, import VAT, and consumption tax levied accordingly. Such remanufactured products must meet all applicable technical requirements for equivalent new products and relevant regulations, and must be clearly labeled as “remanufactured products.” Advanced remanufacturing technologies for mechanical and electrical products will be promoted.

Hainan will also expand the “two ends outside” bonded maintenance catalog as appropriate. For projects within the national catalog, Hainan Province will organize comprehensive assessments and bear primary responsibility; qualified projects can operate in Hainan. Furthermore, Hainan will deepen economic and trade ties and industrial cooperation with Hong Kong, explore rule alignment and mechanism connectivity, and enhance coordinated development with the Guangdong-Hong Kong-Macao Greater Bay Area.

Implementation and Risk Management

The notice calls on relevant units to uphold Party leadership, balance development and security, and implement policies effectively. Hainan authorities are required to fulfill their primary responsibilities, refine work mechanisms, and establish risk prevention and control systems with whole-process supervision to safeguard security. Foreign founders should monitor how these measures are implemented locally, as they may affect market entry, licensing, and operational compliance.

Practical Implications for Foreign Founders

For foreign entrepreneurs planning to register a company in China or expand operations, Hainan’s free trade port continues to offer a testbed for liberalized trade rules. The new measures reduce restrictions in specific sectors such as medical services, exhibition organization, energy trading, and bonded remanufacturing. However, details will depend on implementing regulations and local procedures. It is advisable to consult professional advisors to understand licensing requirements and ensure compliance with Chinese law.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

For assistance with company registration and operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.