Title: Hainan- An opportunity for starters to shape the future of Business
Kalsoom Durrani
Sub-title: Showcasing Pakistani business among 71 countries in the 5th China International Consumer products Expo
Hainan Free Trade Port (FTP) is a major economic initiative by China to turn Hainan Island into a globally influential free trade port by 2025 (with full implementation by 2035). Many goods imported into Hainan are tax-free, especially for production and consumer use. Foreign companies can operate more freely with fewer restrictions. Lower corporate and personal income taxes for eligible businesses and talent. More relaxed visa policies, duty-free shopping (up to 100,000 RMB/year per person), and open sectors like healthcare and education. Trade & Investment Freedom to make Hainan a hub for trade, tourism, and investment, competing with places like Hong Kong and Singapore
The Hainan Expo officially known as the China International Consumer Products Expo, or CICPE is a major annual trade and business exhibition held in Haikou, Hainan. It promotes international trade, investment, and Hainan’s Free Trade Port policies. Consumer goods, luxury products, tech, healthcare, tourism, and duty-free shopping. Global brands, investors, and government officials (China + international). It features forums on trade, innovation, and economic cooperation
Quotes: “This year’s expo was the largest to date, demonstrating the confidence of all parties in China’s economic development,” according to Gu Gang, vice governor of Hainan Province
Starting a small business in Hainan Free Trade Port (FTP) as a Pakistani entrepreneur can be cost-effective due to favorable policies, but expenses depend on the industry, location, and business type
Comparison Hainan vs. Pakistan: The corporate tax for Hainan FTP is 15% with incentives whereas Pakistan’s is 29% to 35%. For Hainan there are no tariffs on many goods but for Pakistan tariffs are high from 18% to 70% on imports. Foreign ownership in Hainan FTP is allowed in many sectors but Pakistan has restrictions. Pakistan’s exports to China: $2–3 billion mainly textiles, seafood, agricultural products. China’s exports to Pakistan: $18–22 billion machinery, electronics, chemicals, steel. Pakistan imports far more from China than it exports. CPEC focus shifts from infrastructure to industrial cooperation, agriculture, and tech. Chinese companies dominate Pakistan’s tech (Huawei, Xiaomi), automotive (MG, Changan), and renewables (solar panel plants). Agri-tech & mining: Chinese firms are investing in potato farms, lithium mines, and fertilizer plants
China grants zero-duty access to 313 Pakistani products (including textiles, leather, seafood). Pakistan offers concessions on 245 Chinese items. Alibaba’s sets e-commerce hubs in Pakistan. Chinese fintech Alipay, WeChat Pay are expanding in Pakistan. Pakistan struggles to boost exports to China. Attacks on Chinese nationals (e.g., Karachi bombing 2022) deter investments. Pakistan aims to increase rice, sesame, and beef exports to China. Chinese automakers (BYD, SAIC) plan electric vehicle (EV) plants in Pakistan. The Hainan Free Trade Port policy can significantly boost business ties between Pakistan and China by leveraging Hainan’s liberalized trade environment, tax incentives, and strategic connectivity. Businesses should attend Hainan Expo to network with Chinese buyers. Pakistan’s participation is a key player in China’s trade ecosystem, especially under CPEC. Here’s a detailed, structured breakdown of Pakistan’s role in the Hainan Expo, with historical context and future projections
In 2022 Pakistan debuted with a small pavilion showcasing textiles (e.g., Nishat Mills’ denim). Agricultural products (Basmati rice, pink Himalayan salt). In 2023 Pakistan included surgical instruments (Sialkot-based exporters) and handicrafts. In 2024 it on IT services (e.g., Arbisoft’s software solutions) and halal food. Pakistani pink salt saw a 300% surge in Chinese buyer inquiries after the 2023 Expo
Pakistan’s Role in Hainan Expo 2025 China International Consumer Products Expo – CICPE
Official Confirmation: Pakistan will double its exhibition space at the 2025 China International Consumer Product Expo in Hainan, with 50+ businesses participating (Ministry of Commerce Pakistan, 2024). $200M+ deals expected in textiles, IT and agriculture. 5,000+ Chinese buyers targeted (Hainan Expo organizer estimate). Pakistan has officially confirmed its participation in the 2025 Hainan Expo, marking its fourth consecutive year at the event. The country will expand its presence with High-profile delegations, including Pakistan’s Commerce Minister and CPEC Authority officials
Pakistan will showcase: Organic cotton, denim, ready-to-wear on Alibaba and JD. Basmati rice, pink Himalayan salt, mangoes in Hainan duty-free stores and supermarkets. Halal Food, Certified meat, dairy, spices for Muslim consumers in China & global buyers. Software development, freelancing platforms in Chinese tech firms outsourcing the talent
New Initiatives for 2025: "Taste of Pakistan” Food Festival Live cooking demos with Pakistani chefs. B2B Matchmaking Sessions Pre-scheduled meetings with Chinese distributors. CPEC-Hainan Linkage Promotion highlight Gwadar-to-Hainan trade routes
Official Statements: ” Pakistan’s 2025 Hainan Expo pavilion will be our biggest yet, reflecting our commitment to tapping China’s $6T consumer market.” Said Abdul Razak Dawood, Former Commerce Advisor of Pakistan (2024 interview)
What I actually observed in Hainan Expo 2025 for Pakistan was just a small pavilion showcasing sculptures made of Onix stone and pink salt along with some other wooden handicrafts and handwoven shawls
When I interviewed the seller about how much it cost him to launch a business here? The reply was “more than the expected cost”. First it needs to register your business in China then, pay for the space at expo, also the transportation cost to China. And most of all you need to pay taxes to Pakistan as well. My second question was what is the minimum limit for a business from Pakistan to China? The answer was more than 3 million RMB. There was nothing happening as the Ministry of commerce has promised which was bit disappointing. Traders are suffering from the instability in the government of Pakistan. The government of Pakistan is not keeping their words which is also disappointing for the new entrepreneurs
As for me, visiting the expo with my colleagues and observing multiple countries showcasing their goods on international platform was a bit disappointing concerned to my country as it was a huge opportunity to boost up the business internationally and make connections beyond the borders
Now about the expo… I generally observed a lot of different business from different countries selling different products and seeking opportunities. There were a lot of ideas for cross border trade. A lot of options for medical goods, Artificial Intelligence based goods, jewelries from different countries, crockery, beauty and esthetic goods, medicine, herbal goods, food items, super foods, telecommunication goods, toys and much more
The trade war between the U.S. and China are raising taxes on each other’s goods, especially in areas like electric cars, computer chips, and green energy. The U.S. says China plays unfair, while China fights back with its own taxes and limits on key materials. This battle is causing problems for global business, and it doesn’t look like it will end soon. The trade war could help some other countries as businesses are moving factories from China to places like Vietnam, India, and Mexico to avoid high taxes. These countries get more jobs and money as a result. Also, if the U.S. and China stop trading as much, other nations can sell more of their own products which can be taken as an opportunity for developing countries and developing businesses
I would suggest people thinking of starting a new business should visit and make more connections and business ideas and think how to make it work in one’s country. Because I think if you want to gain you need to take a risk. You never know the depth of a sea without jumping into it, sometimes you may catch the treasures
About The Author
