By ken_fang    Photo：CANVA

1. Location and Positioning

A front line separated by water, now a duty free gateway for Taiwan trade

Off the southeastern waters of Xiang’an District in Xiamen, Dadeng Island sits within sight of Kinmen, Taiwan, at points separated by little more than a narrow channel. Once the forward edge of the “Heroic Three Islands,” a symbol of past military confrontation, the area has since been recast as the home of the mainland’s first small-scale duty free trading platform for Taiwan goods: the Xiamen Dadeng Cross-Strait Small-Quantity Commodity Trading Market, widely promoted today as “Dadeng Town, Taiwan Duty Free Park.”

2. Origins and Evolution

Policy approval and official launch

The Dadeng cross-strait small-quantity commodity trading market was approved in 1998 by the State Council and the Central Military Commission, and officially opened on May 1, 1999, becoming the mainland’s first duty free, small-quantity trading platform dedicated to Taiwan goods.

From a battlefield tourism stop to a commerce–tourism–culture hub

Built on roughly 13.2 square kilometers of land and the “red memory” associated with the Heroic Three Islands, the market started alongside a former battlefield tourism park, then gradually developed into a cross-strait exchange window that blends commerce, tourism, and cultural activities.

Early growth and expansion (1999–2011)

In its early years, the market operated with just 504 shops and annual import volumes measured in only a few million U.S. dollars. After 2008, redevelopment and expansion repackaged the site as “Dadeng Town,” bringing in more than a thousand Taiwan brands. Annual import value reached a reported peak of about US$80.48 million in 2013.

Transformation and upgrading (2017–present)

As e-commerce reshaped retail and intensified competition, the market pivoted. Xiang’an District launched a 3.04-square-kilometer “Taiwan Trade Specialty Town” project, adding new formats such as a Taiwan youth entrepreneurship park and a cross-border e-commerce logistics center. The aim has been to move Dadeng beyond traditional retail toward a composite model combining commerce, cultural tourism, and youth entrepreneurship.

3. Built Environment and Policy Appeal of Dadeng Town

Scale and design identity

Branded as a national AAA-rated tourist attraction, “Dadeng Town” covers about 830,000 square meters. Designed by a team led by Taiwan architect Lee Tsu-yuan, it blends Minnan-style traditional residences with Taiwan street-house aesthetics. Its central draw, however, is its distinctive duty free shopping policy.

Key duty free and customs facilitation measures

• Duty free allowance: Consumers can purchase up to RMB 6,000 per day in Taiwan-origin goods, exempt from import duties and import-stage taxes.
• Product scope: Offerings include food and edible oils, agricultural and livestock products, textiles and apparel, handicrafts, light industrial goods, pharmaceuticals, and more, with categories expanding over time.
• Scale of trade: The market reportedly showcases tens of thousands of product types, with cumulative imports approaching RMB 6 billion, positioning it as a key “bridgehead” for Taiwan goods entering the mainland.
• Customs facilitation: Customs applies expedited procedures described as “declare and inspect on filing, with priority checks,” and the Kinmen–Xiang’an logistics channel has been restored, cutting cargo transit time to roughly three hours.
• Tax policy updates: In 2025, the Ministry of Finance and other departments expanded the duty free list to seven categories covering 50 items, and raised the duty free alcohol allowance to 4,500 milliliters per person per day.
• Entrepreneurship support: A cross-strait youth entrepreneurship park offers measures such as rent reductions and startup mentoring, supported by services including self-service tax terminals.

4. Xiamen’s Extended Advantages in Cross-Strait Shipping and E-Commerce

A port city with strategic weight

Xiamen is a major port on China’s southeast coast and a strategic node in the Maritime Silk Road framework. Beyond the baseline strengths shared by many port cities, Xiamen’s cross-strait geography and institutional experience give it distinct advantages, particularly in shipping and trade links with Taiwan.

Geography and historical ties

Xiamen and Taiwan face each other across the sea, sharing linguistic and cultural affinities and a long history of commercial exchange, factors that continue to underpin a close economic relationship.

Direct cross-strait routes and efficiency

Xiamen Port is one of the mainland’s primary cross-strait shipping gateways, supported by stable, frequent direct container liner services as well as routes for bulk and general cargo. Transit times are short, and costs are often relatively competitive.

Special supervision models and spillover know-how

Cross-strait trade through Xiamen, especially via the Dadeng small-quantity trading market, operates under specialized trade and regulatory arrangements. While the market’s core business is import-oriented, its supporting logistics and customs-handling experience has also fed into export operations.

Cross-border e-commerce as a logistics hub

Xiamen has become a leading mainland hub for cross-strait e-commerce. A significant share of cross-border parcels bound for Taiwan—particularly fast-moving consumer goods(FMCG) and cultural or creative products—are routed through Xiamen, supported by established dedicated lines and streamlined clearance channels.

5. Challenges, Responses, and the Direction of Change

Adjusting operations under e-commerce pressure

Even as e-commerce disrupts traditional retail and supporting infrastructure remains uneven, Dadeng has pursued a set of countermeasures, including longer operating hours, consumer festivals, and improved transport links. Under the policy guidance commonly summarized as “promote integration through connectivity, benefits, and people-to-people ties,” the market is positioning itself to leverage its unique role, moving from a “small market” toward a “larger platform” aimed at deepening cross-strait economic cooperation and integration.

From trading venue to lifestyle and experience platform

At the heart of the shift is an attempt to expand Dadeng’s role from “commodity transactions” toward “shared living and experience.” Some Taiwan businesses are increasingly using mainland e-commerce platforms and logistics networks, treating the market as a showroom and experience center while operating an integrated online–offline model to sell products nationwide.

6. Assessment and Conclusion

Symbolic policy experiment—and its ceiling

In sum, the Dadeng cross-strait small-quantity commodity trading market is a policy pilot with strong political and economic symbolism rooted in a specific historical period. Its special environment once provided a uniquely positioned platform for small-scale cross-strait trade.

But it now faces a clear ceiling. The original policy advantages have been diluted by broader market-based channels, while location constraints, limited business formats. Today, Dadeng stands at a pivotal moment: a make-or-break transition phase, with hopes increasingly tied to a new airport plan that could enable a “rebirth” of the broader area.

The throughline of three decades

Dadeng’s three-decade evolution traces a living shift from “policy-driven growth” to “socially generated momentum.” It reflects a deeper transition—from a one-way channel built on preferential policy toward a more multidimensional platform shaped by consumer demand and people-to-people ties.

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