China Touts Hainan’s ‘Customs Closure’ as Milestone for Open Markets, but Doubts Persist

Beijing is promoting strong trade and registration figures after Hainan’s customs shift, but analysts say the numbers mask limited structural change.

A cargo ship loaded with containers leaves a port in Haikou in China's southern Hainan Province on May 17, 2021. STR/AFP via Getty Images

When China formally launched its “customs closure” operation at the Hainan Free Trade Port on Dec. 18, the regime quickly framed the move as a milestone in Beijing’s push for innovative economic opening.

State media outlet Xinhua News Agency highlighted surging foreign trade, record duty-free sales, rising port volume, and a spike in new business registrations, portraying the island as the world’s “largest free trade port.”