Hong Kong, Hainan can ‘forge strong partnership’, build on strengths: John Lee

AdvertisementJohn LeeHong KongPoliticsHong Kong, Hainan can ‘forge strong partnership’, build on strengths: John LeeLee says the launch of Hainan’s separate customs regime presents business opportunities for Hong Kong companies2-MIN READ2-MIN ListenMatthew ChengPublished: 1:36pm, 25 Mar 2026Hong Kong and Hainan should forge a strong partnership and explore new models of cooperation, the city’s leader has said, urging the business sector to capitalise on the mainland Chinese province’s free-trade port status by offering professional services in areas such as finance, law and accounting.Chief Executive John Lee Ka-chiu’s call followed a meeting with Feng Fei, the Communist Party secretary of the Hainan provincial committee, on the sidelines of the Boao Forum for Asia annual conference on Wednesday.Hainan, a 35,000 sq km (14,000 square miles) island that is 32 times the size of Hong Kong and 49 times that of Singapore, implemented a separate customs regime last December as it sought to develop into an offshore financial and duty-free hub amid escalating external trade barriers.AdvertisementUnder the regime, most overseas goods entering the island are exempt from import duties, value-added tax and consumption tax. But if the goods are subsequently shipped to other parts of the mainland, they will be taxed as if imported from abroad.If imported items are processed in the province and achieve more than 30 per cent value added, they may enter the mainland market tariff-free.John Lee (left) meets Hainan party secretary Feng Fei on Wednesday. Photo: HandoutLee said the launch of the regime presented multifaceted business opportunities for Hong Kong companies.AdvertisementAdvertisementSelect VoiceSelect Speed0.8x0.9x1.0x1.1x1.2x1.5x1.75x00:0000:001.00x