Editorial | Hong Kong can and must remain competitive with Hainan

Under the new customs regime, about 75 per cent of taxable imports qualify for duty-free entry. Goods imported duty-free and later shipped to the mainland will face tariffs as if they originated abroad. But goods further processed on Hainan can enter the mainland tariff-free or be re-exported, subject to a value-added threshold of 30 per cent. This is bound to further enhance the island’s economic growth, including tourism. President Xi Jinping first unveiled plans for a Hainan free-trade zone seven years ago, positioning the island as a key connector with the global market. Hainan is now cast as a showcase…