Hainan approves fourteenth five-year development plan

 The Hainan authorities approved the fourteenth five-year plan for the socio-economic development of the region for 2021-2025, TASS correspondent reported citing the propaganda department of the provincial party committee.

 

According to statement, the Hainan administration has also set goals for the period until 2035. It is assumed that in 10 years both the economic and innovation potential of the island will maximize, and it will become one of the most attractive places for foreign investors. In accordance with the tasks set by the authorities, Hainan is going to zero duties on many goods and reduce trade barriers for a wide range of imported products during this period of time.

 

According to the information obtained by TASS, by 2025 the provincial leadership intends to "lay the foundations of a system-forming mechanism for the implementation of the development strategy of Hainan's free trade port."

 

The key principles of cooperation with foreign partners in the trade and economic sphere, as noted, will include the simplification of procedures and the gradual abolition of customs duties. In addition, the island's investment and business climate "should generally reach its highest level" over the next few years. In response to domestic and international risks, "effective countermeasures will be taken that will allow timely elimination of the impact of negative factors."

 

During the new five-year plan, the Hainan government is going to place particular emphasis on the development of the modern financial services sector, which allows creating many new jobs. At the same time, the authorities are improving mechanisms to simplify the activities of domestic and foreign qualified investors with limited liability. These special regimes enable companies to overcome a range of barriers to cross-border investment.

 

Hainan's achievements during the thirteenth five-year plan

According to official data, during the thirteenth socio-economic development plan (2016-2020), the annual growth rate of the province's gross regional product averaged over 10%. Hainan has become one of the key Chinese administrative regions with high per capita income. Tourism, the modern service sector and advanced technology industries have played a particularly important role in improving the welfare of the local residents.

 

The authorities also said that over the past five years they have successfully completed the initial stage of modernizing Hainan's economy. As a result, the number of competitive market players, contributing to the growth of innovations, has sharply increased. As noted in the released statement, "the basis for the development of an international consumer zone of global importance on the island has been formed."

 

According to preliminary estimates of the region's statistical office, the average per capita income of the urban population of Hainan in 2020 will reach 27,600 yuan (over $ 4,200 at the current exchange rate). This is 45% higher than in 2015.