December will mark a turning point in the Chinese commercial strategy. The island of Hainan will launch its large -scale independent customs operation, becoming The new nerve center For international trade with China. A movement that arrives five years after Hong Kong lost his historical role as a bridge between the East and West.
The western entrance door to China. Hong Kong has lost much of its appeal to Western companies since 2020, when Beijing The National Security Law imposed In the territory. This change in Hong Kong has been one of the ingredients that have contributed to the cooling of foreign investment in China, and that adds to a list that includes The growing geopolitical tensionsminor growth prospects and increased risk perceived after Trump’s return to power.
The former British colony, which for more than two decades had worked as the privileged entrance door to China, no longer offers the predictable commercial environment sought by Western multinationals.
A new commercial bridge. Hainan is presented as the “new and improved Hong Kong”, and The figures They support it more and more: 74% of Tariff lines They will have tariff -free products, compared to current 21%. Tax free items will go from 1,900 to 6,600. In addition, imported products that experience at least 30% added value when processing in Hainan will be able to enter Chinese continental territory without tariffs. That is, China is creating its freer economic zone just when the rest of the countries are fragmented in commercial blocks.
Prepare, Europe. European companies now face a dilemma: maintain coherence with the geopolitical positions of their governments or take advantage of a real economic opportunity. While Europe debate A separation Of its financial connections on the country, Beijing is offering commercial conditions that will be difficult to reject for many multinationals. The Chinese strategy is clear: to turn Hainan into an irresistible magnet for foreign investment at a time when geopolitical tensions are at its highest point.
The signals are already there. First semester data show that companies with foreign investment in China registered A 2.4% growth In its commercial value, reaching 751,720 million euros. The number of foreign companies with commercial activities in China amounted to 75,000, the highest figure for the same period since 2021. Switzerland, Japan, the United Kingdom and Germany increased their direct investment by 68.6%, 59.1%, 37.6% and 6.3% respectively.
What comes now. Europe has not shown a clear strategy yet. While the United States maintains a more defined position in Its strategic competition with ChinaEuropean countries are debated among their economic ties with the Asian giant and pressures to align with Washington. Hainan represents the Chinese commitment to demonstrate that it can offer better conditions than any other emerging market, precisely when its economic model is most questioned.
The countdown has begun. December 18China will officially open its new gateway to the world.
Cover image | Denny Ryanto
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