Beijing designated an island with an economy comparable to a small European nation as a distinct customs zone, part of efforts to drive commerce and seed China’s targeted accession to a trans-Pacific trade pact.
Hainan, a tourist destination famed for its resorts, this week became a duty-free region and now allows foreign companies to operate in sectors there that they are barred from in mainland China.
Beyond luring foreign investment, Beijing is also aiming to join the CPTPP free-trade deal, underscoring how even as US protectionism has grown, trade has deepened elsewhere.
Cambodia recently applied to join, too, while the EU is pushing agreements with India and with a South American bloc, and China has pressed for a Gulf deal.