HOME / how hainan s deep sea no 1 phase ii cluster powers the free trade port
On 10 June 2021, the 29th meeting of the Standing Committee of the 13th National People's Congress passed the Hainan Free Trade Port Law of the People's Republic of China, which determined to establish and improve the Hainan Free Trade Port customs supervision special zone system with closed-off customs operations on the entire island.
China already has 22 free trade zones (FTZs), but Hainan represents a fundamentally different level of openness. Most FTZs are limited to specific urban areas and focus on upgrading local industries. Hainan has transformed an entire island into a unified free trade port, with its own customs, tax and regulatory system.
On 5 January 2024, the inspection area for railway freight trains at Huairou South railway station —the first railway customs clearance project of the Hainan Free Trade Port, built by the China Railway 25th Bureau Group—was completed.
The "Notice on Preferential Corporate Income Tax Policies for Hainan Free Trade Port" proposed that enterprises in encouraged industries registered and operated in Hainan Free Trade Port shall be subject to a reduced corporate income tax rate of 15%.
Current Tariff Landscape for Lithium-ion LiFePO4 Battery Imports from China to USA is a complex mix of tariffs. As of April 2025, total tariffs range from about 70% to over 170% depending on battery type and classification.
Mitigating tariff risk in battery energy storage system (BESS) projects is crucial for ensuring project financial viability, as tariff changes can significantly affect cost structures and overall project economics.
Recent trade actions have introduced significant battery tariffs on goods imported from China. These changes include duties as high as 104% on some clean energy components, including lithium-ion batteries, critical for energy storage and EV systems. According to U.S. import data, lithium battery shipments from China reached $1.9 billion in 2024.
As of April 2025, total tariffs range from about 70% to over 170% depending on battery type and classification. This includes a 3.4% base duty, a high Section 301 tariff, and extra surcharges, making imports much more expensive and encouraging domestic production.
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