Hong Kong Alternative Hainan?… Duty-Free Limit Raised to 100,000 Yuan from July

[Asia Economy Beijing=Special Correspondent Park Sun-mi] As the Chinese government concretizes its plan to develop the southern island of Hainan into a free trade port where market opening and trade and investment liberalization are realized, the duty-free shopping limit will be raised to more than three times the existing amount starting next month.

According to the Chinese Ministry of Finance on the 30th, the annual duty-free shopping limit per person in Hainan will be adjusted to 100,000 yuan (17 million KRW) starting July 1. This is an increase of more than three times the existing limit of 30,000 yuan. The range of duty-free shopping items will also be significantly expanded to include some electronic products. Additionally, the 8,000 yuan duty-free limit applied to single products will be removed, and the purchase quantity restrictions applied to some items will be relaxed.

The Ministry of Finance stated, "This policy adjustment will greatly improve consumers' shopping experience and increase confidence in the development of the Hainan Free Trade Port."

Amid international concerns that the status of Hong Kong, once a symbol of openness and liberalization, may be shaken due to the passage of the Hong Kong National Security Law (Hong Kong Security Law), the Chinese government is moving forward with the plan to build the Hainan Free Trade Port.

The construction of the Hainan Free Trade Port aims to develop Hainan into a globally influential, high-quality free trade port by 2050. The scope covers the entire Hainan Island. First, by 2025, a basic free trade port system focusing on trade and investment liberalization will be established, and by 2035, the plan is to achieve freedom and convenience in domestic and international capital flows, immigration, and logistics, thereby further maturing the operation level of the free trade port.

Earlier this month, the Chinese State Council announced the construction plan for the Hainan Free Trade Port, which has been analyzed as China preparing an alternative to Hong Kong while emphasizing market opening and liberalization, aiming to strengthen its image as a defender of free trade against the United States.