On February 5th, the Hainan Free Trade Port rolled out a new duty-free shopping policy just for island residents.

The goal is to help lower the cost of living and make sure that the people who live and work here directly benefit from the FTP’s growth.

Under the new policy, eligible residents can shop for daily necessities free of taxes at designated stores. Everyone gets an annual quota of 10,000 yuan to use, and there’s no limit on how many separate shopping trips you make. (Note: This is a separate quota from the existing 100,000-yuan allowance for the island-departure duty-free policy.)

The policy covers Chinese citizens who are Hainan residents (with a local ID card, residence permit, or social security card), as well as foreigners who live and work in Hainan and hold valid residence documents.

The product range is focused on daily essentials, including food and drinks, personal care products, household items, and maternity and baby supplies.

The province’s first five dedicated shops open on February 11th in these locations:

. Haikou:​ Guomao, Chengxi, and West Coast commercial districts

. Sanya:​ Sanya CBD

. Danzhou:​ Xiari Square shopping area

The policy is open to all types of enterprises: state-owned, private, and foreign-invested. To qualify, companies need to prove they have reliable import sources, are well-managed, and have a strong credit history. This helps maintain product quality and consistent operations.

Hainan’s latest policy aims to boost openness and improve daily life for its residents. After seeing how these initial stores perform, the province will slowly expand the network, making it easier for locals to access these benefits.