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6 Special Report on the State of Business in South China
5. Hainan Province 2013 Hainan’s Major Industrial Products
National Rank (total 30 provinces/municipalities)
An Island of Tourism and Agriculture
Product National Rank
Hainan province includes over two hundred islands off of
China’s southern coast in the South China Sea, with Hainan Refined Sugar 5
Island (30 miles off the coast of Guangdong) accounting for 97
percent of provincial land area. China’s smallest province and Natural Gas 18
largest special economic zone, Hainan is at the same latitude as Crude Oil 16
Hawaii, Bali and Phuket and has developed into one of China’s
prime resort areas, earning the nickname “oriental Hawaii.” Cars 21
Although the service industry accounted for 51.9 percent of Paper 16
GDP `in 2014 , Hainan also has the largest primary sector of all
of China’s provinces , through the important contribution of its Fertilizer 21
fisheries and tropical cash crops like coconuts, pepper, coffee,
tea and rubber. Hydropower 22
Economy Chemical Fiber 23
While many of the tourists who travel to Hainan are Chi- Source: National Data(Official website of NBS)
nese, the government is attempting to change this; the State
Council has announced a strategic plan to make Hainan a Shopping Center has attracted a vast number of top-end and
world-class international tourist destination by 2020. The cen- flagship stores to its 125,000 square meter complex after open-
tral government has approved a further 15 resorts and 63 five- ing in September 2014.
star hotels as part of the island’s existing Five-Year Plan. Tourists
may visit the island without a visa as long as they are part of a The accumulative value of the duty-free goods purchased
tour group organized by a state-approved international travel per one-time visitor departing from Hainan Island is limited to
agency. RMB8, 000 and the allowable quantity of each individual type
of good is as shown in the Annex. As long as the import duty
The most valuable government policies issued in connection of the goods has been paid, each visitor may also purchase one
with promoting Hainan as an international tourist destination product priced over RMB8, 000.
are the island’s duty-free policies, post-departure tax refunds,
and visa exemptions for tourists from 26 countries and regions. Hainan Island occupies 42.5 percent of the nation’s total
tropical landmass used for agriculture, forestry, animal husband-
Since April 2011, tourists have been able to purchase duty- ry and fishery. Major agricultural industries include natural rub-
free commodities at duty-free stores in the province and leave ber, coffee, tobacco, tropical flowers and tropical fruits such as
the island by air, greatly increasing tourism and high-end con- coconuts, watermelons and bananas. Hainan is also developing
sumption. Having recognized the tremendous benefits brought aromatic vegetables into a major industry.
to the local economy by the policy, the Chinese central govern-
ment loosened previous restrictions in October 2012. The min- The province is home to 70 percent of China’s titanium
imum age for purchasing duty-free commodities was lowered to reserves and is a major salt production center. Main exports
16, while the upper value limit for duty-free commodities was include aquatic products, furniture and wood, electrical and
increased from RMB5, 000 to RMB8, 000. Moreover, three electronic products, and iron and steel. Hainan’s main import
additional categories of commodities have been added to the and export trading partners are the E.U., ASEAN, the U.S. and
duty-free list, namely, beauty and health care products, table- Japan.
ware and kitchen appliances, and toys - expanding the scope of
duty-free commodities to 21 categories. Hainan’s territory covers an enormous amount of seabed - a
radius of about 200 miles around the island area - and the local
In an effort to bring the huge potential of the duty-free pol- government is keen to exploit this in terms of aquaculture and
icy into full play, construction of the world’s largest duty-free offshore oil and gas production in the South China Sea. Since
shopping center has begun in the resort city of Sanya. With an 1996, Hainan has been supplying Hong Kong with natural gas
investment of RMB3.45 billion, the Haitang Bay International through a 770-kilometer pipeline. Large oil and gas reserves
have been discovered in the South China Sea, a major source of
66 conflict between China and its neighboring countries in recent
times.
The 12th Five-Year Plan of Hainan aims to promote the
modern service industries, including tourism, commercial exhi-
bitions, modern logistics, and sports and leisure. It also aims to
greatly increase investment into the new energy, new materials
and biomedical industries, such that they become the province’s
main pillars of economic growth. The Plan hopes to form five
5. Hainan Province 2013 Hainan’s Major Industrial Products
National Rank (total 30 provinces/municipalities)
An Island of Tourism and Agriculture
Product National Rank
Hainan province includes over two hundred islands off of
China’s southern coast in the South China Sea, with Hainan Refined Sugar 5
Island (30 miles off the coast of Guangdong) accounting for 97
percent of provincial land area. China’s smallest province and Natural Gas 18
largest special economic zone, Hainan is at the same latitude as Crude Oil 16
Hawaii, Bali and Phuket and has developed into one of China’s
prime resort areas, earning the nickname “oriental Hawaii.” Cars 21
Although the service industry accounted for 51.9 percent of Paper 16
GDP `in 2014 , Hainan also has the largest primary sector of all
of China’s provinces , through the important contribution of its Fertilizer 21
fisheries and tropical cash crops like coconuts, pepper, coffee,
tea and rubber. Hydropower 22
Economy Chemical Fiber 23
While many of the tourists who travel to Hainan are Chi- Source: National Data(Official website of NBS)
nese, the government is attempting to change this; the State
Council has announced a strategic plan to make Hainan a Shopping Center has attracted a vast number of top-end and
world-class international tourist destination by 2020. The cen- flagship stores to its 125,000 square meter complex after open-
tral government has approved a further 15 resorts and 63 five- ing in September 2014.
star hotels as part of the island’s existing Five-Year Plan. Tourists
may visit the island without a visa as long as they are part of a The accumulative value of the duty-free goods purchased
tour group organized by a state-approved international travel per one-time visitor departing from Hainan Island is limited to
agency. RMB8, 000 and the allowable quantity of each individual type
of good is as shown in the Annex. As long as the import duty
The most valuable government policies issued in connection of the goods has been paid, each visitor may also purchase one
with promoting Hainan as an international tourist destination product priced over RMB8, 000.
are the island’s duty-free policies, post-departure tax refunds,
and visa exemptions for tourists from 26 countries and regions. Hainan Island occupies 42.5 percent of the nation’s total
tropical landmass used for agriculture, forestry, animal husband-
Since April 2011, tourists have been able to purchase duty- ry and fishery. Major agricultural industries include natural rub-
free commodities at duty-free stores in the province and leave ber, coffee, tobacco, tropical flowers and tropical fruits such as
the island by air, greatly increasing tourism and high-end con- coconuts, watermelons and bananas. Hainan is also developing
sumption. Having recognized the tremendous benefits brought aromatic vegetables into a major industry.
to the local economy by the policy, the Chinese central govern-
ment loosened previous restrictions in October 2012. The min- The province is home to 70 percent of China’s titanium
imum age for purchasing duty-free commodities was lowered to reserves and is a major salt production center. Main exports
16, while the upper value limit for duty-free commodities was include aquatic products, furniture and wood, electrical and
increased from RMB5, 000 to RMB8, 000. Moreover, three electronic products, and iron and steel. Hainan’s main import
additional categories of commodities have been added to the and export trading partners are the E.U., ASEAN, the U.S. and
duty-free list, namely, beauty and health care products, table- Japan.
ware and kitchen appliances, and toys - expanding the scope of
duty-free commodities to 21 categories. Hainan’s territory covers an enormous amount of seabed - a
radius of about 200 miles around the island area - and the local
In an effort to bring the huge potential of the duty-free pol- government is keen to exploit this in terms of aquaculture and
icy into full play, construction of the world’s largest duty-free offshore oil and gas production in the South China Sea. Since
shopping center has begun in the resort city of Sanya. With an 1996, Hainan has been supplying Hong Kong with natural gas
investment of RMB3.45 billion, the Haitang Bay International through a 770-kilometer pipeline. Large oil and gas reserves
have been discovered in the South China Sea, a major source of
66 conflict between China and its neighboring countries in recent
times.
The 12th Five-Year Plan of Hainan aims to promote the
modern service industries, including tourism, commercial exhi-
bitions, modern logistics, and sports and leisure. It also aims to
greatly increase investment into the new energy, new materials
and biomedical industries, such that they become the province’s
main pillars of economic growth. The Plan hopes to form five
