China’s policymakers have signaled the country’s commitment to institutional opening-up, with the Hainan FTP serving as a key testing ground

The 2026 Boao Forum for Asia Annual Conference in Hainan convenes at a critical time of global economic fragmentation and geopolitical strain. China’s policy direction outlined during the two sessions, the annual meetings of China’s top legislative and political advisory bodies in March, reflected the country’s focus on high-quality development, expanded opening-up and industrial modernization. Within this framework, advancing the marine economy in the South China Sea and the accelerated construction of the Hainan Free Trade Port emerge as strategic pillars with profound implications for Asia and the broader Global South.

High-quality development, a core theme of China’s economic strategy, entails a shift from speed-driven growth to innovation-led, green and sustainable development. The marine economy — encompassing shipping, fisheries, offshore energy, marine biotechnology, coastal tourism and seabed resource exploration — is the next frontier sector capable of delivering such transformation.

Strengthening ecological conservation and advancing maritime industries are some key directions outlined in the 15th Five-Year Plan (2026-30) for national economic and social development. This approach reflects a dual commitment: safeguarding maritime ecological security and upgrading the value chain of ocean-related industries.

Importantly, high-quality marine development aligns with China’s dual circulation paradigm, wherein domestic and international economic flows reinforce one another. Modern ports, smart shipping corridors and integrated coastal economic belts not only serve domestic upgrading but also enhance connectivity with the Association of Southeast Asian Nations and other Asian economies. As the Boao Forum’s agenda underscores, deeper regional integration — particularly through the effective implementation of the Regional Comprehensive Economic Partnership — can amplify these synergies. Efficient maritime logistics and harmonized customs procedures will facilitate smoother trade flows across Asia-Pacific markets.

The development of the Hainan FTP represents one of China’s most ambitious economic initiatives. Building on the experiences of earlier pilot free trade zones, Hainan is poised to emerge as a globally influential free trade port by mid-century, characterized by zero tariffs on most goods, simplified taxation, liberalized services trade and greater cross-border capital facilitation. During the two sessions, policymakers reaffirmed the commitment to institutional opening-up, and the Hainan FTP can serve as a key testing ground for such reforms.

Hainan’s strategic location in the South China Sea positions it as a key hub for the marine economy, supporting maritime services, offshore finance, marine technology innovation and international shipping. By integrating traditional marine industries with high-end services such as finance, insurance and R&D, the Hainan FTP is well placed to enhance the competitiveness and sophistication of the region’s ocean economy.

For Malaysia, these developments present practical opportunities. As a maritime trading nation, Malaysia can leverage China’s Hainan province as a complementary platform for trade between China and ASEAN, particularly in logistics, port services and halal-certified seafood exports benefiting from streamlined customs procedures. Collaboration in marine research, green shipping and offshore finance could further deepen bilateral economic ties while strengthening Malaysia’s role in regional supply chains.

A central question facing almost every country in the Asia-Pacific region is how to inject certainty into an increasingly volatile global environment. China’s high-standard opening-up — exemplified by the Hainan FTP — signals policy continuity and sustained global engagement. Rather than retreating from globalization, China seeks to improve it through institutional openness and deeper regional cooperation, including renewed emphasis on revitalizing the Asia-Pacific Economic Cooperation mechanism toward an Asia-Pacific community vision and strengthening diversified cross-border payment systems.

In response to unilateral trade measures, reinforcing regional frameworks such as the RCEP provides a buffer against external shocks. At the same time, enhanced marine connectivity — through port digitalization, green shipping technologies and upgraded maritime infrastructure — can reduce logistics costs, foster integrated supply chains and anchor Asia’s leading role in global economic transformation.

Beyond Asia, the implications extend to the Global South, where many developing countries continue to face structural constraints, including limited access to capital, technological gaps, commodity dependence and heightened climate vulnerability. China’s development trajectory — particularly its strategic use of special economic zones and coastal regions to facilitate industrial upgrading — offers practical policy insights. The experience of the Hainan FTP illustrates how institutional opening-up, regulatory innovation and targeted sectoral development can be combined to attract investment while fostering domestic capacity building.

High-quality marine development further underscores the importance of sustainable resource governance, coastal resilience and marine ecosystem conservation. For some Global South economies with extensive coastlines, technological cooperation in marine renewable energy, smart port logistics and sustainable aquaculture presents concrete avenues for South-South collaboration as climate pressures intensify. For example, Brazil — with its long coastline and strong agro-industrial base — could leverage cooperation in sustainable aquaculture and offshore renewable energy to diversify beyond bulk commodity exports, moving toward higher value-added seafood processing and green energy industries. Such partnerships would support technology transfer, enhance environmental governance and strengthen domestic industrial upgrading.

At the same time, openness has to be balanced with prudent risk management. The 15th Five-Year Plan’s green development goals therefore can signal high-level environmental standards and greater investment in blue carbon initiatives, underscoring that high-quality growth should not come at the expense of ecological integrity.

Overall, the Boao Forum for Asia 2026 serves as both a barometer and a catalyst for rebuilding consensus and restoring confidence in an increasingly turbulent global landscape. By convening policymakers, business leaders and scholars, the forum underscores Asia’s — and particularly China’s — potential to contribute to a more inclusive and stable international order. This will be achieved through the integration of marine economic development and institutional opening-up, with the Hainan FTP serving as a key exemplar. As China’s 15th Five-Year Plan unfolds this year, the interplay between domestic modernization and global engagement will be central to shaping China’s future direction. If implemented with transparency and consistency, China’s high-standard opening-up measures could help bolster international trust, enhance regional resilience via deeper connectivity and trade facilitation, and unlock meaningful development opportunities for the Global South. Together, these efforts represent a strategic response to the ongoing transformation of the global order.

The author is a research associate at the Malaysia-China Friendship Association and the former deputy director of the Institute of China Studies at the University of Malaya. 

The author contributed this article to China Watch, a think tank powered by China Daily. The views do not necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn.