Hong Kong, as a global trading hub, will continue to complement the Hainan Free Trade Port (FTP) and pursue mutual benefits while working together to promote free trade, said Chief Executive John Lee Ka-chiu.
The remarks were made during a meeting with Hainan's Party Secretary, Feng Fei, on Wednesday (Mar 25), ahead of the city's leader attending the Global Free Trade Ports Development Forum at the Boao Forum for Asia Annual Conference 2026.
According to Lee’s social media post, he and Feng engaged in a conversation on strengthening in-depth exchanges between Hong Kong and Hainan in areas such as economic and trade investment, finance, and professional services.
Lee noted that Hainan initiated its island-wide customs closure on December 18 last year, which has enabled the free flow of various elements within the island and significantly increased the variety of zero-tariff goods.
He stated that Hong Kong has long implemented a zero-tariff policy and is a long-standing free port, stressing that the city is the primary source of foreign investment for Hainan and a key trade partner, with many Hong Kong-based enterprises operating in the province.
The new customs operation in Hainan presents more opportunities for these businesses, he said, adding that Hong Kong and Hainan can create a powerful synergy by exploring new cooperation models.
"Hong Kong can leverage its advantages in global procurement, trade financing, and logistics to import raw materials from overseas," Lee outlined. "If these materials are processed in Hainan and achieve a value-add of over 30 percent, the resulting products can enter the mainland market duty-free."
At the same time, he highlighted that Hong Kong can provide a full range of professional services, including finance, legal, accounting, consulting, and mediation, to support Hainan's industrial development.
"By making full use of these tariff preferences, an efficient industrial chain can be formed," Lee said.
The Hainan FTP is the world's largest by area, and its latest special customs operation allows freer entry of overseas goods, an expanded zero-tariff coverage, and more business-friendly measures.
Chinese officials describe the system as offering "freer access at the first line," referring to trade between Hainan and areas outside China's customs borders, and "regulated access at the second line," which involves applying standard customs controls for goods moving from Hainan to the mainland.
