How China’s Hainan reinvented itself as Hong Kong’s rival and partner

Mar 20th 2026

Since creating a separate customs regime, Hainan is positioning itself as a low-tax regional hub and strategic partner to Hong Kong, blending competitive overlap with signals of closer cooperation.

  • Hainan launched a separate customs regime three months ago as part of its free-trade port push.
  • Officials say Hainan aims to be a gateway to the Chinese market and a 'super partner' to Hong Kong across industry chains, finance and tourism.
  • Both Hainan and Hong Kong offer a corporate tax rate of 15 per cent and are positioned close to Southeast Asian markets.
  • Hong Kong provides more than 70 per cent of Hainan's foreign investment and Hainan proposes a model of orders in Hong Kong, production in Hainan and sales worldwide.