1. A Tropical Island with a Rich Past and a Bright Future
The tropical island of Hainan is found at the southernmost tip of China. Roughly the size
of Belgium, its lush forests, vibrant biodiversity, and monsoon rains form a unique part
of China’s natural heritage.
Totalling one-third of China’s rainforests,
Hainan is a hotspot for fauna and flora with thousands of species of plants and animals
living there, including rare endemic species of monkeys, deer, and the Asian bear. The
natural wealth of this unique ecosystem is preserved in one of China’s first and largest
national parks.
2. A Pioneer in Blue Economy
In addition to its green heritage, the tropical island also intends to become a
world-class pioneer in the field of the blue economy, i.e. the sustainable development and
management of ocean resources.
Hainan already benefits from its white beaches
and clear waters through tourism, but new projects are coming to life from coastal carbon
capture projects and the restoration and protection of maritime ecosystems to the
development of sustainable fisheries. Thus, the island is turning an emerging concept into
vibrant economic opportunities.
3. A Distinct and Diversified Culture
With a population of over 10 million, Hainan is also home to an ancient culture distinct
from the mainland.
The Li people have thrived on the island for thousands of
years. To the present day, they have maintained their traditions, notably a strong
practice of gender equality, atypical architectural constructions, or folk dress and
music, which attract millions of tourists from the Chinese mainland and beyond every year.
national parks.
4. Port Cities: History & Beauty
More than 2000 years ago, Hainan’s city of Sanya was known as “the end of the Earth”. Yet,
enjoying a warm climate all year round, Sanya is today famous for its palm trees and
beaches, its luxurious hotels, and for being the home of the largest duty-free shopping
mall in the world.
Twin city of Cannes, Blackpool, and Cancún, Sanya is the
hotbed of Hainan’s growing tourism industry.
Hainan’s capital Haikou was one of the first ports opened to Western merchants in 1858. And
still today, the city benefits from its proximity to one of the busiest trade routes in the
world.
Its long history as a trading hub and cultural melting pot is showcased in its
broad range of architecture, mixing both Western and South-East Asian styles with Chinese and
local traditions.
In 2022, the whole island became the largest free trade port in the world with the promise
of becoming a central node in global maritime trade routes, as well as one of the drivers of
Chinese growth and innovation. The free trade port policy identifies key sectors enjoying
lighter and tailored regulations but also reduced taxation and other incentives welcoming
foreign talent and capital.
Making the Business Case for Hainan, the World’s Largest Free Trade Port
In 2022, the island of Hainan became the largest free trade port in the world and constitutes a
key pilot project in China’s national « opening up » policy which aims at trade and investment
liberalisation.
The Hainan Free Trade Port is founded on 6 key pillars:
Free Trade
A competitive entry point into China’s mainland markets:
Free trade both in goods and services between Hainan and the rest of the world with the
establishment of a special customs supervision zone Zero-tariff trade policy
for a
wide range of goods (e.g. equipment used by Hainan-based companies, yachts, vehicles, raw materials, …) not falling
within a limited catalog of goods Full establishment of the zero-tariff regime by 2025 Reduced tariffs on more than 12,000 categories of goods (notably electromechanical, textile,
pharmaceutical and chemical products) Cargos transporting goods included in the selected categories are exempted from routine
inspections Goods flowing from Hainan into China’s mainland are exempted from import tariffs if at least 30% of their value is added to Hainan island Expanded and equal access in service sector procurement for foreign investors, manufacturers
and service providers Simplified administrative procedures across the board Investment Liberalisation
China’s most open and welcoming market on a number of dimensions:
Expanded market access for foreign investors in priority sectors (further details below) Equal treatment of foreign and domestic companies in administrative procedures, government
procurement, standard setting, permit issuance, business operations, … Application of competition and anti-monopoly laws Enforcement of property laws, notably intellectual Qualified individuals benefit from a reduced 15% income tax rate Comprehensive simplification of the tax framework as a whole Free Cross-Border Capital Flows
An offshore financial center in-the-making that will gradually enable the free flow of
capital between Hainan and the rest of the world by:
Opening China’s financial sector to international actors, notably through an expanded scope
of use of foreign capital Supporting the establishment of trading venues and settlement centres in the fields of
energy, shipping, property rights, equity management, … Supporting the development of real estate investment trusts Facilitating foreign debt fund exchanges Facilitating trade settlements by allowing for post-operation authenticity checks Launching a distinctive multi-functional free trade account system Developing new forms of cross-border investment and asset management Free Movement of People
A top destination for domestic visitors with unique attractions for international talents
and tourists through:
Gradually implementing a visa-free entry policy Facilitating the issuance of work permits for foreign talents in strategic sectors linked to
high-tech industries, modern services, and tourism Enabling convenient access to the island for yachts and cruises Allowing foreign personnel to work as legal representatives in public institutions and
state-owned enterprises Building a Global Transportation Hub
A transportation hub of world-class proportions through:
Supporting ship registrations in Hainan’s port of Yangpu Increasing shipping and flight routes Easing airspace controls and airway rights restrictions Facilitating financing for the shipping and aerospace industries, notably by lifting
restrictions on foreign investment in these sectors Open and Secure Data Flows
A digital environment fostering a secure and innovative high tech economy:
Data openness will be expanded Innovation in system security design will be promoted Equity ratios for foreign companies in value-added telecommunication services will be
lifted Priority Sectors
1. HIGH TECH INDUSTRIES
Internet of Things Artificial Intelligence Blockchain E-commerce New energy vehicles Autonomous driving Advanced agriculture Biomedicine Deep sea mining Space industries Tropical agriculture 2. MODERN SERVICES
Modern finance Business services Headquarters economy for transnational companies Shipping registration center and international shipping hubs Health & medicine International exhibition centers International education Marine economy such as infrastructure, tourism and awareness Service for global supply chains 3. TOURISM
Yachting and marine services International cruising hub Duty-free shopping Culture & sports Medical service and elderly care ... Hainan Free Trade Port's strategic location, favourable policies, and diverse investment opportunities make it a destination for foreign investors seeking to tap into China's vast potential
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