Why Beijing wants Hainan to be more than just ‘China’s Hawaii’

China’s island province of Hainan is gearing up to play a critical role in the country’s economy as a free-trade port. Direct foreign investment into China fell 10.4 per cent in the first three quarters of 2025 and Beijing is banking on “China’s Hawaii” to reverse the trend. In a first for the country, the central government designated the entire province as a distinct customs territory that functions separately from the rest of mainland China. The Post explores what is behind the island’s radical policy overhaul, from its 100,000-yuan (US$14,400) annual duty-free shopping quota to its special “electronic fence” bank accounts.