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Great expectations for Hainan FTP

By Natan Colombo | chinadaily.com.cn | Updated: 2025-12-19 14:09
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Yachts and motorboats shuttle near an island in Sanya, Hainan province, on Aug 3. YE LONGBIN/FOR CHINA DAILY

The first time I heard about Sanya and Hainan was during my first visit to China in 2011, when I came to Sanya for a short holiday with some friends. It only took me a few days to fall in love with this city because of its amazing beaches, culinary delights, interesting culture, and breathtaking sunsets. Back then, I would have never expected that Hainan would eventually become my second home.

Later, I attended Chinese language courses at Tsinghua University to develop language skills that would allow me to be fully self-sufficient in my daily life in China. Since 2013, I have been living and working in Sanya at the International School of Hainan Tropical Ocean University, where I am responsible for courses of economics, business management, and law.

Fourteen years ago, Sanya was certainly very different from the city it has become today. In recent years, I have experienced firsthand its rapid and steady growth as I watched the entire Hainan province, and particularly its larger cities, benefit from a truly impressive development. For instance, in terms of infrastructural expansion, the strengthening of major ports and the enlargement of major airports have already increased the number of inbound tourists and consequently supported related consumption.

Service-oriented industries have also been significantly expanded and changed profoundly. The quality and efficiency of the services provided by various governmental offices and agencies — from which I have personally benefited — have improved significantly.

In April 2018, the intention to transform Hainan into a pilot free trade zone was announced. Since then, I have followed the development of the Free Trade Port (FTP) very closely. The decision to establish a free trade port in Hainan is clearly associated to the island's geographical location in the South China Sea and its proximity to ASEAN countries. In this regard, the FTP is expected to ensure greater integration between China and these countries within the context of the Belt and Road Initiative.

Undoubtedly, the creation of the Hainan FTP highlights the special attention that the central government pays to Hainan and its development. At the same time, it represents a significant step in a more elaborate strategy for strengthening the Chinese economy and fostering medium- and long-term growth from a macroeconomic perspective. Besides, the expansion of the FTP can also be seen as an interesting opportunity for foreign companies and businesses to invest directly in Hainan and participate in its economic development.

Certainly, the policies of the FTP that have influenced my work as a university lecturer are those related to attracting qualified personnel, especially in the higher education sector. For example, in 2023, I was recognized by the Hainan provincial government as Hainan FTP talent E and this allowed me to enjoy certain benefits, including a subsidy for renting an apartment in Sanya. But there are many other benefits, such as preferential channels for enrolling the children of talents in schools in Hainan. A few days ago, I attended a conference on economic cooperation between China and Italy held at Yazhou Bay Science and Technology City and, on that occasion, I met some Italian colleagues who teach in China and they were very impressed by the benefits that Hainan offers to talents and the investment, research, and development opportunities that the FTP encourages and supports. Many expressed to me their desire to move here in the near future and this let me reflect on how attractive Hainan has become not only for businessmen, but also for academicians and researchers because of the FTP policies.

Investment opportunities for international companies are significant and varied, especially in the service-oriented industries, which are the most important sectors for Hainan. Because of the FTP, there is a clear competitive advantage of investing directly in Hainan, in particular, in the transportation and logistics sector, the development of new applications and IT technologies based on Artificial Intelligence, the creation and implementation of technological systems, medical treatments, green economy-oriented industries, and sustainable development. The Hainan FTP offers immense opportunities as an extraordinary platform for foreign companies to enter the large consumer market in China. As an example, Italian companies and businesses can find substantial advantages in investing in the Hainan FTP with specific regard to the luxury sectors, which are among the most profitable segments of the Made-in-Italy product offering worldwide.

I expect that the changes for Hainan will be even more significant than those we have seen in recent years. Hainan will evolve as a gateway to global markets based on easier and freer entry of imported goods, expanded zero-tariff coverage, and tailored policies for businesses. I am confident that the future will be full of interesting opportunities for Chinese and foreign companies in Hainan thanks to the establishment and evolution of the FTP.

Natan Colombo is a professor of economics, management, and law at the International School of Hainan Tropical Ocean University.

The views don't necessarily represent those of China Daily.

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