Tax Incentives: Hainan's "30% value-added processing" policy enables goods processed on the factory in the island to enter the Chinese mainland duty-free(0% tariff tax), offering an advantage that Singapore's intermediary model cannot match.
New routes, such as Batam to Yangpu, enable ASEAN goods to bypass Singapore, cutting sailing time to just 6 days compared to the 20-day detour through the Malacca Strait. Direct shipping routes from Yangpu to Indonesia saw a 78% surge in cargo volume during the first 10 months of 2025, ahead of the full customs closure.
Direct routing to Yangpu can cut business costs by up to 32% while significantly lowering spoilage rates for perishables, such as tropical fruits, from 8% to just 3%.