Policy incentives and specialized clusters drive Hainan's high-standard FTP development

A booth at a sub-venue of the CICPE held at the Boao Lecheng International Medical Tourism Pilot Zone for health and wellness, in Boao, Hainan province. [Photo by Xu Jiayi/chinadaily.com.cn]

Driven by a fresh wave of policy incentives and the recently launched island-wide special customs operations, the Hainan Free Trade Port is rapidly evolving into a high-quality hub for global companies and talents.

As the 15th Five-Year Plan (2026-30) takes shape, the island is moving beyond its role as a tourism destination to become a strategic stepping stone for international companies looking to penetrate the vast Chinese market.

The China International Consumer Products Expo (CICPE) serves as the primary window into this transformation.

Ireland served as the guest country of honor at the 4th expo, showcasing over 100 distinct products from 17 representative brands this year.

Highlighting Ireland's participation, Derek Lambe, economic counselor at the Embassy of Ireland in China, noted that Irish companies are drawn to the platform's immense value.

"We're back again this year and a lot of the Irish companies who are here have come back again and again. And that's because we see so much potential and so much value at the Hainan expo," Derek said, adding that, "Hainan serves as a stepping stone for Irish companies looking to enter the wider Chinese market."

A food processing factory at the Wenluo Industrial Park in Hainan province. [Photo by Xu Jiayi/chinadaily.com.cn]

In addition to the main venue, the expo features sub-venues, including the Boao Lecheng International Medical Tourism Pilot Zone for health and wellness, and the Sanya Boat Festival, reflecting the diversity of Hainan's opening-up.

Beyond the exhibition halls, Hainan's industrial clusters are facilitating robust trade and educational exchange.

The Wenluo Industrial Park in Lingshui Li autonomous county is strategically attracting companies from home and abroad across four main industries spanning food processing, high-end industrial manufacturing, wellness and medical health care, and logistics.

"With the increasing number of settled companies, our output value is expected to reach 2 to 3 billion yuan ($293.04-439.56 million) this year," said Liao Hongyun, Wenluo industrial park's deputy general manager for investment promotion and operation, adding, "products are being sold to the vast domestic and Southeast Asian markets by leveraging Hainan's geographical location."

Students utilize the shared library at the Hainan Lingshui Li'an international education innovation pilot zone. [Photo by Xu Jiayi/chinadaily.com.cn]

Furthermore, Hainan Lingshui Li'an international education innovation pilot zone is exploring new educational models to attract talents by offering shared public facilities and mutual credit recognition among universities, fostering high-quality interdisciplinary professionals.

Huang Xiande, a young entrepreneur and student representative for the 2021 transitional education program, noted that the pilot zone provides comprehensive database support, direct funding, and a suite of policy incentives that have been vital to their company's growth. Moreover, the island-wide special customs operations introduce great policy incentives to similar AI start-ups, including the preferential 15 percent income tax rate.