Brief by Shorts91 Newsdesk / 07:25am on 23 Dec 2025,Tuesday International
China launched island-wide special customs operations in Hainan, creating the world's largest free-trade port with zero-tariff eligibility for 74% of goods up from 21%. The island, 50 times Singapore's size, operates as a separate jurisdiction with its own customs, tax, and regulatory systems. Companies registered in Hainan pay only 15% corporate tax versus 25% mainland rates, while skilled professionals face just 15% income tax compared to mainland's 45%. Products gaining 30% value through Hainan processing enter mainland China duty-free. Since 2020, over 8,000 foreign companies from 176 countries invested $14.6 billion. This bold move counters rising global trade barriers and aims to reverse China's 10% FDI drop. (PC: India Today)
