Among China's coastal cities, Sanya in the southern Chinese island province of Hainan is relatively young. It was established in 1987, riding the very wave of the country's reform and opening up. In less than four decades, it has transformed from a fishing town to a premier tourist destination and pivotal trade port.

By the end of September, the number of foreign nationals entering and exiting through Hainan's ports had reached 980,000, a surge of 46.3 percent year on year, surpassing pre-pandemic 2019 levels. As of early November, Sanya Phoenix International Airport had handled 795,000 passenger arrivals, a 60-percent year-on-year increase. Among these travelers, 83 percent are foreign nationals, with 93 percent of them entering visa-free—both metrics ranking among the highest for air hubs nationwide.

Currently, passengers from 86 countries can enter Hainan visa-free, making the island province one of China's most accessible destinations for international travelers.

Duty-free pulse 

At 10 a.m., sunlight pours into the Sanya International Duty-Free Complex, dappling the floors through its colossal glass walls. Within the sleek, yacht-inspired structure, the morning beat of commerce is already palpable.

In the sorting and distribution warehouse of the complex's logistics department, supervisor Tang Shuaishuai's eyes are fixed on real-time data flickering across his computer screen as duty-free goods purchased in the complex are placed on flights to the purchaser's destination. "Our intelligent sorting system can automatically identify the urgency level of each order, ensuring delivery to the aircraft before the customer's flight departs," he told Beijing Review. His walkie-talkie intermittently crackled with confirmation messages from various pick-up points.

Pointing to a recently updated data entry, he noted, "See here, this customer's flight was rescheduled, but the system has already automatically re-routed the delivery. If a traveler updates their information at least six hours ahead, the system will rearrange the delivery route for on-time arrival of the goods." This seemingly minor convenience is underpinned by the intricate and precise operation of an entire logistics ecosystem.

Furthermore, the methods for collecting duty-free goods have become increasingly diversified. In addition to the standard airport and port pickup, a range of more convenient options have been introduced, including home delivery. The mail delivery service, now covering the entire nation, effectively addresses the common consumer dilemma of wanting to buy more than one can carry.

The realization of the benefits offered by the offshore duty-free policy, which allows visitors to make tax-free purchases at designated stores, is inextricably linked to highly efficient and stringent customs oversight. A departure from the old model, today's regulatory framework is defined by smart, unobtrusive oversight.

"From the moment goods arrive in Hainan and enter bonded warehouses, information including brands, specifications, and quantities is reported to and enters the monitoring process of the customs authorities," Tang elaborated. Within the customs surveillance zone, data for every duty-free item is synchronized in real-time with the customs platform at every stage: warehousing, exit from the warehouse, sale, and final collection.

Strolling through the vast complex, one observes an intriguing phenomenon: Alongside the familiar international luxury brands, the counters of Chinese brands like Huawei, Florasis, and Caremore also draw substantial crowds.

"We introduced these premium domestic products to the duty-free complex both to meet the interest of international tourists in Chinese goods and to bolster the confidence of domestic consumers in homegrown brands through direct comparison," Feng Chonghan, Deputy General Manager of the Sanya International Duty-Free Shopping Complex, told Beijing Review.

This strategy is yielding positive results. On October 1, the inaugural themed exhibition of Dimoo dolls, with Dimoo being a popular character created by designer toy company Pop Mart, was held at the complex, featuring an immersive experience that fused trendy art with local culture and attracting a large number of young consumers. Through such innovative models, a growing number of distinctive guochao (China-chic) brands are leveraging this platform to reach a global audience.

Feng revealed that the complex plans to continuously increase the proportion of domestic brands, aiming to upgrade from a platform primarily for introducing international goods to a hub facilitating flows of goods in both directions.

In another part of the city, the Sanya FLY3 Cross-Border Experience City is dedicated to assembling a diverse array of goods from international markets. As the permanent home of the China International Consumer Products Expo (CICPE), a premier national-level trade fair. The venue hosts over 10 national pavilions and has become a year-round marketplace, facilitating over 10,000 cross-border transactions since its opening in July.

With products from countries participating in the China-proposed Belt and Road Initiative, which works to boost connectivity along and beyond the ancient Silk Road routes, now enjoying a year-round presence, Sanya solidifies its role as an established hub for premium international products, moving beyond temporary exhibitions to sustained commerce.

Invisible convenience 

In the international departure hall of Sanya Phoenix International Airport, as passengers push their luggage carts through security checkpoints, few are aware they are participating in a quiet revolution in regulatory procedures.

By the end of 2024, the airport had streamlined its entry process into a single, unified inspection. Under this model, a single baggage scan is reviewed simultaneously by both security and customs officers on separate screens, a collaborative screening that has reduced clearance times to under 60 seconds.

"As soon as luggage is placed on the conveyor belt, CT scan images are simultaneously transmitted to the customs backend. Passengers don't need to have their bags scanned a second time, achieving a seamless clearance experience," explained Gao Shiying, Chief of the Passenger Inspection Section at Sanya Airport Customs, a unit of Haikou Customs.

This efficiency is driven by the ongoing refinement of intelligent passenger inspection systems, which leverage advanced imaging and AI analysis to balance precise oversight with seamless passenger flow.

Immigration facilities have also been upgraded. In July, to support the 240-hour visa-free transit policy, dedicated lanes were introduced that combine permit issuance with entry checks. Currently, travelers from 55 eligible countries who meet certain criteria can enter China through any of 65 designated ports in 24 provincial-level regions and stay in the country for up to 240 hours, or 10 days, without a visa before heading to a third destination.

"This enables transit passengers to arrive, complete procedures and depart with minimal delay," said Wang Jian, deputy station head of the Phoenix Border Inspection Station under the Haikou Exit-Entry Frontier Inspection Corps. Official statistics show that from the start of the year until the end of September, the port visa office at the airport had processed over 12,000 applications, a year-on-year increase of 15 percent.

Notably, promotional videos detailing the visa-free entry process, dubbed in Russian, play on loop on the large screens at the entry of the airport. Since the start of this year, Sanya has received more than 167,000 Russian visitors, a remarkable 177-percent increase compared to the previous year. In response, the airport's border inspection station has deployed Russian-speaking staff, multilingual translators, smart form-filling kiosks and high-definition guidance screens, ensuring a seamless air-to-ground passenger flow.

A free trade port (FTP) system focusing on trade and investment liberalization and facilitation will be "basically established" in Hainan by 2025 and become "more mature" by 2035, according to a master plan released by China's central authorities in 2020. It further states that the island province will become a globally influential high-level FTP by the middle of the century.

Bolstered by the policies on Hainan's FTP development, Sanya has launched 38 international and regional air routes. This captivating tropical coastal city is embracing global travelers with ever-greater efficiency, security and openness. BR

(Reporting from Sanya, Hainan Province) 

Printed edition title: A Frontier Without Borders     

Copyedited by G.P. Wilson 

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