Page 116 - 2023 Special Report on the State of Business in South China
P. 116
Hainan
The economy Recent policies and reforms
Locatedat the southernmost tip of Master Plan for the Construction of the
China, Hainan overlooks Hainan Free Trade Port
Guangdong across the Qiongzhou Strait to the
north, Vietnam across the Beibu Bay to the west. On 1 June 2020, the State Council issued the
Its neighbors in the South China Sea include the Master Plan for the Construction of the Hainan
Philippines, Brunei and Malaysia. It became a Free Trade Port in order to benchmark against
province and SEZ in 1988, abbreviated as Qiong. high-level international economic and trade rules,
The island covers a land area of 35,400km2 and liberate thoughts, make bold innovations, focus
has a maritime area of about 2,000,000km2, with on the liberalization and facilitation of trade and
total population of 10.1 million64. In 2021, Hainan investment, establish a policy and institutional
robust economic growth, the GDP of the province system suitable for a high-level free trade port,
reached RMB647.52 billion, surging 11.2% from create a special area of customs supervision with
a year earlier. And Hainan's average growth rate international competitiveness and influence, and
in the last two years reached 7.3%, ranking first build the Hainan Free Trade Port into a “shining
in China. Duty-free shopping has become one of flag” and an important open portal leading to China
the core competitive features of Hainan's tourism opening-up to the outside world. This plan includes:
consumption and has made a great contribution,
with the tropical island reporting over RMB60 - Development goals:
billion of offshore duty-free shopping in 202165.
1. By 2025, a free trade port policy and
Market highlights institutional system will have been established,
focusing on the liberalization and facilitation
Tourism industry is the one of the top priorities of trade and investment. The overall business
of Hainan’s economy development. More than environment will be brought to the first-class
81 million domestic and overseas tourists visited level in China, the number of market entities
Hainan in 2021, up 25.5% YoY, which is equivalent will be substantially increased, industrial
to 97.5% of the number in 2019. To provide a better competitiveness will be significantly improved,
experience for customers, Hainan has rolled out a powerful and effective risk prevention and
range of policies such as flexible pick-up services. control mechanisms will be in place, laws and
Since 1 July 2020, Hainan has raised its annual regulations will be gradually perfected to adapt
tax-free shopping quota from RMB30,000 to to the construction of a free trade port, and the
RMB100,000 per person. The duty-free purchase quality and efficiency of economic development
limit for cosmetics has been raised from 12 items will be markedly enhanced.
to 30. As Covid-19 continues to make overseas
travel difficult, Hainan has grown into an attractive 2. By 2035, the free trade port system and
shopping destination for domestic consumers. operation mode will be more mature. Trade
and investment rules characterized by freedom,
64 Government site of Hainan, http://en.hainan. fairness, rule of law and high-level process
gov.cn/englishgov/AboutHainan/abuothainan.shtml supervision will be basically established to realize
65 China Daily, https://global.chinadaily.com. free and convenient trade, free and convenient
cn/a/202201/20/WS61e8ca36a310cdd39bc823c1.html investment, free and convenient cross-border
116
The economy Recent policies and reforms
Locatedat the southernmost tip of Master Plan for the Construction of the
China, Hainan overlooks Hainan Free Trade Port
Guangdong across the Qiongzhou Strait to the
north, Vietnam across the Beibu Bay to the west. On 1 June 2020, the State Council issued the
Its neighbors in the South China Sea include the Master Plan for the Construction of the Hainan
Philippines, Brunei and Malaysia. It became a Free Trade Port in order to benchmark against
province and SEZ in 1988, abbreviated as Qiong. high-level international economic and trade rules,
The island covers a land area of 35,400km2 and liberate thoughts, make bold innovations, focus
has a maritime area of about 2,000,000km2, with on the liberalization and facilitation of trade and
total population of 10.1 million64. In 2021, Hainan investment, establish a policy and institutional
robust economic growth, the GDP of the province system suitable for a high-level free trade port,
reached RMB647.52 billion, surging 11.2% from create a special area of customs supervision with
a year earlier. And Hainan's average growth rate international competitiveness and influence, and
in the last two years reached 7.3%, ranking first build the Hainan Free Trade Port into a “shining
in China. Duty-free shopping has become one of flag” and an important open portal leading to China
the core competitive features of Hainan's tourism opening-up to the outside world. This plan includes:
consumption and has made a great contribution,
with the tropical island reporting over RMB60 - Development goals:
billion of offshore duty-free shopping in 202165.
1. By 2025, a free trade port policy and
Market highlights institutional system will have been established,
focusing on the liberalization and facilitation
Tourism industry is the one of the top priorities of trade and investment. The overall business
of Hainan’s economy development. More than environment will be brought to the first-class
81 million domestic and overseas tourists visited level in China, the number of market entities
Hainan in 2021, up 25.5% YoY, which is equivalent will be substantially increased, industrial
to 97.5% of the number in 2019. To provide a better competitiveness will be significantly improved,
experience for customers, Hainan has rolled out a powerful and effective risk prevention and
range of policies such as flexible pick-up services. control mechanisms will be in place, laws and
Since 1 July 2020, Hainan has raised its annual regulations will be gradually perfected to adapt
tax-free shopping quota from RMB30,000 to to the construction of a free trade port, and the
RMB100,000 per person. The duty-free purchase quality and efficiency of economic development
limit for cosmetics has been raised from 12 items will be markedly enhanced.
to 30. As Covid-19 continues to make overseas
travel difficult, Hainan has grown into an attractive 2. By 2035, the free trade port system and
shopping destination for domestic consumers. operation mode will be more mature. Trade
and investment rules characterized by freedom,
64 Government site of Hainan, http://en.hainan. fairness, rule of law and high-level process
gov.cn/englishgov/AboutHainan/abuothainan.shtml supervision will be basically established to realize
65 China Daily, https://global.chinadaily.com. free and convenient trade, free and convenient
cn/a/202201/20/WS61e8ca36a310cdd39bc823c1.html investment, free and convenient cross-border
116
