Hainan had one job for years: capturing domestic luxury-goods spending. Now China wants the island province to work harder.

Beijing’s message is unmistakable: If Hainan can no longer thrive as a place for domestic shoppers to buy their perfume and handbags, it will have to become a place to process goods, attract overseas capital and experiment with a more open economic model.

​Beijing’s message is unmistakable: If Hainan can no longer thrive as a place for domestic shoppers to buy their perfume and handbags, it will have to become a place to process goods, attract overseas capital and experiment with a more open economic model.