On June 1, 2020, the Chinese government issued a master plan for the Hainan FTP, which focused on facilitating free trade investment, establishing a policy system suitable for a high-level Free Trade Port, and creating an internationally influential special customs administration area.
In the year following the publication of the master plan, 791 projects kicked off in Hainan, with a total investment of 223.48 billion yuan (about $35.06 billion).
In the first quarter of 2021, Hainan achieved a regional GDP of 139.6 billion yuan (about $21.9 billion), a year-on-year increase of 19.8%, the second-highest growth rate of any Chinese province.
Several key policies have been implemented in the FTP, including a 15% income tax for both individuals with high-level and in-demand expertise working in Hainan and eligible Hainan-registered companies in certain industries, zero tariffs on listed imported raw materials, zero tariffs on listed imported vehicles and yachts, and a negative list for zero tariffs on manufacturing equipment for internal production use.
As of the end of 2020, a total of 45,940 companies had opened in Hainan’s province-level key industrial parks, increasing total company numbers by 74.5%. Hainan’s 11 key Free Trade Port industrial parks were home to a total of 38,899 companies, an increase of 89.8%.
On May 1, 2018, Hainan implemented a policy allowing citizens of 59 countries to enter without a visa. In the first quarter of 2021, 419 foreign invested companies were set up in Hainan, a year-on-year increase of 525.37%. Actual use of foreign investment funds totaled 555.8 million USD, a 432.98% increase over the previous year’s numbers, and Hainan saw new foreign invested companies from 66 countries and regions set up in the province.
As the world’s largest Free Trade Port, as well as an international tourism island brimming with tropical romance, Hainan had attracted 232,000 talented individuals as of April 12, 2021, and is turning into one of the hottest new places for investment on the planet as well as a new home for young people from near and far.
SOURCE Hainan International Media Center (HIMC)
