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5 White Paper on the Business Environment in China
3.5 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
Although the service industry accounted for 46.9 percent Cars 19
of GDP `in 2012, Hainan also has the largest primary sector of
all of China’s provinces, through the important contribution Chemical Fiber 19
of its sheries and tropical cash crops like coconuts, pepper,
co ee, tea and rubber. Source: China Statistical Yearbook, 2013
Economy free shopping center has begun in the resort city of Sanya.
With an investment of RMB3.45 billion, the Haitang Bay
While many of the tourists who travel to Hainan are International Shopping Center has attracted a vast number
Chinese, the government is attempting to change this; the of top-end and agship stores to its 125,000 square meter
State Council has announced a strategic plan to make Hainan complex after opening in September 2014.
a world-class international tourist destination by 2020. e
central government has approved a further 15 resorts and e accumulative value of the duty-free goods purchased
63 ve-star hotels as part of the island’s existing Five-Year per one-time visitor departing from Hainan Island is limited
Plan. Tourists may visit the island without a visa as long as to RMB8,000 and the allowable quantity of each individual
they are part of a tour group organized by a state-approved type of good is as shown in the Annex below. As long as the
international travel agency. import duty of the goods has been paid, each visitor may also
purchase one product priced over RMB8,000.
e most valuable government policies issued in
connection with promoting Hainan as an international Hainan Island occupies 42.5 percent of the nation’s
tourist destination are the island’s duty-free policies, post- total tropical landmass used for agriculture, forestry, animal
departure tax refunds, and visa exemptions for tourists from husbandry and shery. Major agricultural industries include
26 countries and regions. natural rubber, co ee, tobacco, tropical owers and tropical
fruits such as coconuts, watermelons and bananas. Hainan is
Since April 2011, tourists have been able to purchase also developing aromatic vegetables into a major industry.
duty-free commodities at duty-free stores in the province
and leave the island by air, greatly increasing tourism and e province is home to 70 percent of China’s
high-end consumption. Having recognized the tremendous titanium reserves and is a major salt production center.
bene ts brought to the local economy by the policy, the Main exports include aquatic products, furniture and
Chinese central government loosened previous restrictions in wood, electrical and electronic products, and iron
October 2012. e minimum age for purchasing duty-free and steel. Hainan’s main import and export trading
commodities was lowered to 16, while the upper value limit partners are the E.U., ASEAN, the U.S. and Japan.
for duty-free commodities was increased from RMB5,000
to RMB8,000. Moreover, three additional categories of Hainan’s territory covers an enormous amount of seabed - a
commodities have been added to the duty-free list, namely, radius of about 200 miles around the island area - and the local
beauty and health care products, tableware and kitchen government is keen to exploit this in terms of aquaculture
appliances, and toys - expanding the scope of duty-free and o shore oil and gas production in the South China Sea.
commodities to 21 categories. Since 1996, Hainan has been supplying Hong Kong with
natural gas through a 770-kilometer pipeline. Large oil and
In an e ort to bring the huge potential of the duty-free gas reserves have been discovered in the South China Sea, a
policy into full play, construction of the world’s largest duty- major source of con ict between China and its neighboring
countries in recent times.
254
e 12th Five-Year Plan of Hainan aims to promote the
modern service industries, including tourism, commercial
exhibitions, modern logistics, and sports and leisure. It also
aims to greatly increase investment into the new energy, new
3.5 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
Although the service industry accounted for 46.9 percent Cars 19
of GDP `in 2012, Hainan also has the largest primary sector of
all of China’s provinces, through the important contribution Chemical Fiber 19
of its sheries and tropical cash crops like coconuts, pepper,
co ee, tea and rubber. Source: China Statistical Yearbook, 2013
Economy free shopping center has begun in the resort city of Sanya.
With an investment of RMB3.45 billion, the Haitang Bay
While many of the tourists who travel to Hainan are International Shopping Center has attracted a vast number
Chinese, the government is attempting to change this; the of top-end and agship stores to its 125,000 square meter
State Council has announced a strategic plan to make Hainan complex after opening in September 2014.
a world-class international tourist destination by 2020. e
central government has approved a further 15 resorts and e accumulative value of the duty-free goods purchased
63 ve-star hotels as part of the island’s existing Five-Year per one-time visitor departing from Hainan Island is limited
Plan. Tourists may visit the island without a visa as long as to RMB8,000 and the allowable quantity of each individual
they are part of a tour group organized by a state-approved type of good is as shown in the Annex below. As long as the
international travel agency. import duty of the goods has been paid, each visitor may also
purchase one product priced over RMB8,000.
e most valuable government policies issued in
connection with promoting Hainan as an international Hainan Island occupies 42.5 percent of the nation’s
tourist destination are the island’s duty-free policies, post- total tropical landmass used for agriculture, forestry, animal
departure tax refunds, and visa exemptions for tourists from husbandry and shery. Major agricultural industries include
26 countries and regions. natural rubber, co ee, tobacco, tropical owers and tropical
fruits such as coconuts, watermelons and bananas. Hainan is
Since April 2011, tourists have been able to purchase also developing aromatic vegetables into a major industry.
duty-free commodities at duty-free stores in the province
and leave the island by air, greatly increasing tourism and e province is home to 70 percent of China’s
high-end consumption. Having recognized the tremendous titanium reserves and is a major salt production center.
bene ts brought to the local economy by the policy, the Main exports include aquatic products, furniture and
Chinese central government loosened previous restrictions in wood, electrical and electronic products, and iron
October 2012. e minimum age for purchasing duty-free and steel. Hainan’s main import and export trading
commodities was lowered to 16, while the upper value limit partners are the E.U., ASEAN, the U.S. and Japan.
for duty-free commodities was increased from RMB5,000
to RMB8,000. Moreover, three additional categories of Hainan’s territory covers an enormous amount of seabed - a
commodities have been added to the duty-free list, namely, radius of about 200 miles around the island area - and the local
beauty and health care products, tableware and kitchen government is keen to exploit this in terms of aquaculture
appliances, and toys - expanding the scope of duty-free and o shore oil and gas production in the South China Sea.
commodities to 21 categories. Since 1996, Hainan has been supplying Hong Kong with
natural gas through a 770-kilometer pipeline. Large oil and
In an e ort to bring the huge potential of the duty-free gas reserves have been discovered in the South China Sea, a
policy into full play, construction of the world’s largest duty- major source of con ict between China and its neighboring
countries in recent times.
254
e 12th Five-Year Plan of Hainan aims to promote the
modern service industries, including tourism, commercial
exhibitions, modern logistics, and sports and leisure. It also
aims to greatly increase investment into the new energy, new
