Situated at the southernmost tip of China, Hainan
overlooks Guangdong across the Qiongzhou Strait to the north, Vietnam across
the Beibu Bay to the west. It is at the center of the Asia Pacific economic
circle with ready access to international shipping routes of the South China
Sea.
It covers a land area of 35,400 square kilometers and
administers neighboring Xisha, Nansha and Zhongsha islands, as well as their
waters. The central Hainan Island is dome-mountain shaped and surrounded by
lower flat land. Mountains, hills, tablelands and plains form the annular and
laminar landform with obvious cascade terrain structure.
A pleasant tropical maritime climate makes Hainan Island
an ideal habitat, especially for seniors or those seeking health benefits. The
island knows no winter and has an annual sunshine duration of 1,750 to 2,650
hours, a yearly average temperature of 23 C to 26 C, and an average annual
rainfall of above 1,600 mm.
The total population is approximately 9.25 million and
consists of diverse ethnic groups, including Han, Li, Zhuang, Miao and Hui.
Approximately 23 out of every 100,000 people in Hainan live to a grand old age
of over 100.
Hainan boasts rich biological resources and enjoys the
reputation of a "green treasure island". With a wide range of
tropical plants, flowers, fruits and herbs, Hainan is the largest tropical gene
bank of China. It also has rich oil, natural gas, ferrous metals, non-ferrous
metals, sea salt and soil resources.
Economic Overview
Hainan Island, part of the southernmost province of
China, is not only the largest special economic zone in the country but also a
key link on the 21st Century Maritime Silk Road. With its dynamic and vibrant
economic developments, especially the gradual exploration of establishing the
China (Hainan) Pilot Free Trade Zone and a free trade port with Chinese
characteristics, Hainan has attracted investors from all around the world.
In the year 2017, Hainan's GDP achieved 446.25 billion
yuan ($65.3 billion), an increase of 7 percent compared with 2016. The added
value in the primary industry was 97.93 billion yuan, increased by 3.6 percent;
that in the secondary industry was 99.71 billion yuan, increased by 2.7
percent; that in the tertiary industry was 248.61 billion yuan, increased by
10.2 percent. The ratio of the three industries is 22.0:22.3:55.7, indicating
that the effect of Hainan’s service industry in supporting local economic
development was enhanced by that year.
Pillar Industries
To accelerate and optimize industrial structure in Hainan
province as a new economic growth point, and promote Hainan's comprehensive,
sustained and healthy development economically and socially, instructions to
adhere to ecological red lines have been implemented. According to the Main
Functional Area Planning in Hainan province and the red line of ecological
protection requirements, the overall development of space and industrial layout
was formulated based on the province's economic and social development over a
period of time.
There are 12 key provincial cultivation
industries:
Tourism
On the premise of protecting the ecological environment,
the province focuses on the development of marine tourism, medical tourism,
shopping tourism, convention and exhibition tourism, sport tourism, rural
tourism, forest tourism, RV camping tourism and characteristic urban
tourism.
Tropical feature high-efficiency
agriculture
The province mainly focuses on enhancing off-sea
breeding, developing natural rubber, consolidating and developing aquaculture
of winter vegetables and melons, speeding up the development of tropical
fruits, promoting the development of modern agriculture services, especially in
logistics industry of agricultural product processing and leisure agriculture,
Internet+ agriculture, and agricultural insurance.
Internet industry
The province enhances the development of application
service industries, including electronic commerce, game animation and service
outsourcing. Meanwhile, Hainan strengthens the integration between Internet and
other industries including tourism, agriculture, medical care, education,
logistics, real estate, and finance.
Medical care and health industry
The province focuses on promoting the development of
medical licensing in Chinese medicine, health care, health insurance and
internet health care services.
Finance and insurance industry
The province encourages domestic and foreign financial
institutions to set up branches in Hainan, expands market players, increases
credit funds, constructs multi-level financial markets, makes good use of the
insurance dividend policy, strengthens inclusive finance, and promotes local
financial innovation and other measures to enhance the development of the
financial services industry in Hainan.
Exhibition industry
The province further improves facilities and services,
actively introduces international conferences, associations and company annual
meetings, cultivates a group of exhibitions with the characteristics of
internationalization, specialization and branding in tourism shopping, marine
tourism, health care, the Internet industry, efficient agriculture, aerospace
and other fields.
Modern logistics industry
The province focuses on strengthening the province's
integrated transport system, logistics infrastructure and logistics service
facilities, studies the establishment of trading centers for energy, rubber,
jewelry and other commodities, developing bonded logistics, cross-border
electronic commerce, and promoting the logistics mode of innovation and
logistics resource integration.
Oil and gas industry
Hainan strengthens efforts in the development of the raw
materials industry, including oil, aromatic hydrocarbons, urea, and methanol,,
as well as the fine chemical industry, new materials industry, high-end
chemical product industry and energy trading industry.
Pharmaceutical industry
Relying on "Haikou Medical Valley", Hainan
focuses on the development of medical industries in bio medicine, Chinese
medicine, and medical equipment.
Low carbon manufacturing
Hainan spares no effort in the development of the
automobile manufacturing industry, green food processing industry, new energy
and new materials industry.
Estate industry
Hainan focuses on the development of shantytowns to
improve residential real estate in the island, operating tourism real estate,
and commercial real estate. Hainan has established a stable and healthy real
estate product supply system and housing security system, and enhances the
development of quality and features, which are considered as priorities.
High technology, education, culture and
sports industry
Hainan cultivates biological medicine, membrane
materials, special glass and special natural rubber materials, photovoltaic
silicon solar cells and components and breeding, and pursues international
cooperation in education. It also cultivates a characteristic entertainment
industry, cultural tourism industry, cultural festival exhibition industry,
film and television production industry, new media and creative industries,
sports leisure industry and international cultural trade industry.
Advantages
First, it has unique regional advantages. Located in the
conjoining area of Asia and the Pacific Ocean, Hainan Island is located midway
between Japan andSingapore. It is an important maritime transportation route
connecting two major water systems: the Pacific Ocean and the Indian Ocean.
Second, it has an open free trade zone policy Hainan is
intended to be a free trade zone under a major national strategic policy, and
will gradually explore and steadily promote free trade port construction with
Chinese characteristics, all planned, deployed and encouraged by the central
government. The China (Hainan) Pilot Free Trade Zone will operate across the
entire island, with its strategic positioning as a "pilot area with
comprehensively deepened reform and opening-up ", a "national
experimental area for ecological civilization", an "international
tourism consumption center" and a "national major strategic service
area".
Third, it has innovative development planning. Hainan was
the first pilot province approved by the central government to carry out the
reform of replacing multiple plans for provincial development with one master
plan. In accordance with requirements of pilot reforms proposed by the central
government, Hainan insists on unified planning and becoming both a big and
scenic city. It wants to break the barriers of department and division segmentation,
optimize space layout and resource allocation, and coordinate the six types of
space planning, namely essential functions, ecological wealth, urban systems,
land use, forest land protection and use, and marine functions.
Fourth, it has high-level infrastructure. A convenient
"traffic network" including the sea, land and air has been
constructed in Hainan. The island has the world's first roundabout high-speed
railway, running through 12 cities and counties in the east and west. Total
road length of the province is 20,860 km; the network density is 79.23 km/100
square km. Haikou Meilan International Airport and Sanya Phoenix International
Airport have a combined throughput of 40 million person-times. Boao
International Airport has been completed and put into operation. The system of
"four directions, five ports", with Haikou port and Yangpu port as
the two cores, has been improved on a daily basis.
Fifth, it has multicultural talent pool. Hainan is the
youngest province in China. It grew from the grand occasion of "100,000
talents crossing the strait" in its early days, and is growing now from
the magnificent feat of "1,000,000 talents entering Hainan action
plan". At present, Hainan has nearly 1.3 million talents, of whom nearly
50,000 are high-level. With its unique ecological environment, Hainan attracts
more than 100,000 "migratory bird" talents every year, over 30
percent at the top of their professions.
Sixth, it has efficient review. Hainan will energetically
simplify administrative licensing items, focus on improving examination and
approval services, eliminate more than 1,200 items subject to delegated
authority to lower-level governments and adjust their examination and approval
procedures, and eliminate the application materials for 875 provincial-level
administrative licensing items.
To facilitate people who want to invest
and set up business in Hainan, here is an introduction of Types of business
presence in China:
WhollyForeign Owned Enterprise
(WFOE) is a Limited liability company wholly owned by the
foreign investor. WFOE requires no registered capital and it's liability of
equity , can generate income, pay tax in China and it's profit could be
repatriate back to investor's home country. Any enterprise in China which is
100 percent owned by a foreign company or companies can be called as WFOE.
RepresentativeOffice (RO) is a
Liaison Office of it's parent company. It requires no
registered capital. It's activities would be: product or service promotion,
market research of it's parent company's business, Quality Control liaison
office etc in China. RO generally is prohibited to generate any revenue nor
generating contracts with local businesses in China.
Business set-up in Hainan is a big
project by itself, which requires financial and time commitments, business
management knowledge and China expertise. Identifying a competent agent to
manage the complex process will be a cost and time effective way to avoid
potential pitfalls . Tommy China Business Consulting has direct connections in
the local government
Since 2006, TCBC has been focusing on
consulting services for our clients to invest in Haikou, Sanya Hainan China. We
are specialized in establishment of wholly foreign owned enterprises (WFOEs),
setting up of offshore companies, trading services, tax minimization, Assist
in obtaining government approvals and certificates for running business,
negotiate and draft various legal documents provide legal advice, negotiate government
officer for Land acquisition. Advising on formation of WOFE and business
structures, managing and controlling WOFE in Hainan China, drafting privacy
policies and structuring commercial transactions
-Wholly Foreign Owned Enterprises (WFOE
)
-Joint Ventures (Equity/Co-operative)
-Foreign Invested Partnership
Enterprises (FIPE)
