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5 Special Report on the State of Business in South China
5. Hainan Province
An Island of Tourism and Agriculture Hainan’s Major Industrial Products
National Rank (total 30 provinces/municipalities)
Hainan province includes over two hundred islands o of
China’s southern coast in the South China Sea, with Hainan Product National Rank
Island (30 miles o the coast of Guangdong) accounting
for 97 percent of the province’s land area. China’s smallest Refined Sugar 5
province and largest special economic zone, Hainan is at the
same latitude as Hawaii, Bali and Phuket and has developed Natural Gas 15
into one of China’s prime resort areas, the “oriental Hawaii.” Crude Oil
Economy Cars 19
While many of the tourists who travel to Hainan are Chi- Chemical Fiber 19
nese, the government is attempting to change this; the State
Council has announced a strategic plan to make Hainan a Source: China Statistical Yearbook, 2013
world-class international tourist destination by 2020. e
central government has approved a further 15 resorts and 63 e accumulative value of the duty-free goods purchased
per one-time visitor departing from Hainan Island is limited
ve-star hotels as part of the island’s existing Five-Year Plan. to RMB8,000 and the allowable quantity of each individual
Tourists may visit the island without a visa as long as they are type of good is as shown in the Annex below. As long as the
part of a tour group organized by a state-approved interna- import duty of the goods has been paid, each visitor may also
tional travel agency. purchase one product priced over RMB8,000.
e most valuable government policies issued in connec- Hainan Island occupies 42.5 percent of the nation’s to-
tion with promoting Hainan as an international tourist des- tal tropical landmass used for agriculture, forestry, animal
tination are the island’s duty-free policies, post-departure tax husbandry and shery. Major agricultural industries include
refunds, and visa exemptions for tourists from 26 countries natural rubber, co ee, tobacco, tropical owers and tropical
and regions. fruits such as coconuts, watermelons and bananas. Hainan is
also developing aromatic vegetables into a major industry.
Since April 2011, tourists have been able to purchase du-
ty-free commodities at duty-free stores in the province and eprovinceishometo70percentofChina’stitaniumreserves
leave the island by air, greatly increasing tourism and high- and is a major salt production center. Main exports include
end consumption. Having recognized the tremendous ben- aquatic products, furniture and wood, electrical and electronic
e ts brought to the local economy by the policy, the Chi- products, and iron and steel. Hainan’s main import and export
nese central government loosened previous restrictions in trading partners are the E.U., ASEAN, the U.S. and Japan.
October 2012. e minimum age for purchasing duty-free
commodities was lowered to 16, while the upper value limit Hainan’s territory covers an enormous amount of seabed - a
for duty-free commodities was increased from RMB5,000 to radius of about 200 miles around the island area - and the local
RMB8,000. Moreover, three additional categories of com- government is keen to exploit this in terms of aquaculture
modities have been added to the duty-free list, namely, beauty and o shore oil and gas production in the South China Sea.
and health care products, tableware and kitchen appliances, Since 1996, Hainan has been supplying Hong Kong with
and toys - expanding the scope of duty-free commodities to natural gas through a 770-kilometer pipeline. Large oil and
21 categories. gas reserves have been discovered in the South China Sea, a
major source of con ict between China and its neighboring
In an e ort to bring the huge potential of the duty-free countries in recent times.
policy into full play, construction of the world’s largest duty-
free shopping center has begun in the resort city of Sanya. e 12th Five-Year Plan of Hainan aims to promote the
With an investment of RMB3.45 billion, the Haitang Bay modern service industries, including tourism, commercial
International Shopping Center has attracted a vast number exhibitions, modern logistics, and sports and leisure. It also
of top-end and agship stores to its 125,000 square meter aims to greatly increase investment into the new energy, new
complex after opening in September 2014. materials and biomedical industries, such that they become the
province’s main pillars of economic growth. e Plan hopes to
62 form ve industry groups in the automobile, food & beverage
and agricultural product processing, photovoltaic, medical
and pharmaceutical, cultural and creativity, and leisure and
entertainment industries, with output of over RMB10 billion
5. Hainan Province
An Island of Tourism and Agriculture Hainan’s Major Industrial Products
National Rank (total 30 provinces/municipalities)
Hainan province includes over two hundred islands o of
China’s southern coast in the South China Sea, with Hainan Product National Rank
Island (30 miles o the coast of Guangdong) accounting
for 97 percent of the province’s land area. China’s smallest Refined Sugar 5
province and largest special economic zone, Hainan is at the
same latitude as Hawaii, Bali and Phuket and has developed Natural Gas 15
into one of China’s prime resort areas, the “oriental Hawaii.” Crude Oil
Economy Cars 19
While many of the tourists who travel to Hainan are Chi- Chemical Fiber 19
nese, the government is attempting to change this; the State
Council has announced a strategic plan to make Hainan a Source: China Statistical Yearbook, 2013
world-class international tourist destination by 2020. e
central government has approved a further 15 resorts and 63 e accumulative value of the duty-free goods purchased
per one-time visitor departing from Hainan Island is limited
ve-star hotels as part of the island’s existing Five-Year Plan. to RMB8,000 and the allowable quantity of each individual
Tourists may visit the island without a visa as long as they are type of good is as shown in the Annex below. As long as the
part of a tour group organized by a state-approved interna- import duty of the goods has been paid, each visitor may also
tional travel agency. purchase one product priced over RMB8,000.
e most valuable government policies issued in connec- Hainan Island occupies 42.5 percent of the nation’s to-
tion with promoting Hainan as an international tourist des- tal tropical landmass used for agriculture, forestry, animal
tination are the island’s duty-free policies, post-departure tax husbandry and shery. Major agricultural industries include
refunds, and visa exemptions for tourists from 26 countries natural rubber, co ee, tobacco, tropical owers and tropical
and regions. fruits such as coconuts, watermelons and bananas. Hainan is
also developing aromatic vegetables into a major industry.
Since April 2011, tourists have been able to purchase du-
ty-free commodities at duty-free stores in the province and eprovinceishometo70percentofChina’stitaniumreserves
leave the island by air, greatly increasing tourism and high- and is a major salt production center. Main exports include
end consumption. Having recognized the tremendous ben- aquatic products, furniture and wood, electrical and electronic
e ts brought to the local economy by the policy, the Chi- products, and iron and steel. Hainan’s main import and export
nese central government loosened previous restrictions in trading partners are the E.U., ASEAN, the U.S. and Japan.
October 2012. e minimum age for purchasing duty-free
commodities was lowered to 16, while the upper value limit Hainan’s territory covers an enormous amount of seabed - a
for duty-free commodities was increased from RMB5,000 to radius of about 200 miles around the island area - and the local
RMB8,000. Moreover, three additional categories of com- government is keen to exploit this in terms of aquaculture
modities have been added to the duty-free list, namely, beauty and o shore oil and gas production in the South China Sea.
and health care products, tableware and kitchen appliances, Since 1996, Hainan has been supplying Hong Kong with
and toys - expanding the scope of duty-free commodities to natural gas through a 770-kilometer pipeline. Large oil and
21 categories. gas reserves have been discovered in the South China Sea, a
major source of con ict between China and its neighboring
In an e ort to bring the huge potential of the duty-free countries in recent times.
policy into full play, construction of the world’s largest duty-
free shopping center has begun in the resort city of Sanya. e 12th Five-Year Plan of Hainan aims to promote the
With an investment of RMB3.45 billion, the Haitang Bay modern service industries, including tourism, commercial
International Shopping Center has attracted a vast number exhibitions, modern logistics, and sports and leisure. It also
of top-end and agship stores to its 125,000 square meter aims to greatly increase investment into the new energy, new
complex after opening in September 2014. materials and biomedical industries, such that they become the
province’s main pillars of economic growth. e Plan hopes to
62 form ve industry groups in the automobile, food & beverage
and agricultural product processing, photovoltaic, medical
and pharmaceutical, cultural and creativity, and leisure and
entertainment industries, with output of over RMB10 billion
