Hainan to reward hi-tech companies that transfer their business to Hainan

 HAIKOU, November 2.  The Hainan authorities will reward high-tech enterprises that fully transfer their businesses to the island, reported the Hainan Daily newspaper.

 

Innovative development companies, 12 months after registering a business on Hainan, can receive a cash bonus of 5% of their fixed capital investment or 10% of their research and development (R&D) investment. The maximum amount they can count on a year after the move is 5 million yuan (about $ 745,000).

 

Moreover, in the future, the provincial authorities will annually provide development companies with funds to pay off 30% of their R&D expenses, large enterprises will be able to receive up to 2 million yuan (about $ 300,000), the rest — up to 1 million yuan (about $ 150,000). The local administration is also preparing to simplify the scheme for granting loans to such enterprises and to make concessions for those organizations that incur serious operating losses and experience difficulties in paying real estate tax.

 

In April 2018, President Xi Jinping said that the Chinese authorities intend to actively involve Hainan in globalization and to draw foreign investors to the island province. By 2050, according to the authorities, the island should become a unique international cluster with an advanced economy, developed tourism, top-notch scientific, technical and financial potential, and modern medicine. The branches of the best universities and offices of the most powerful corporations in the world will be located on the Island of Hainan. 

 

By 2025, the Chinese government intends to create an "international center for tourism and consumption" on Hainan. In order to do so, the "Eastern Hawaii" with their unique natural landscapes, thick rainforests and great climate will establish a developed network of hotels, which blend perfectly with white sandy beaches stretching along the coastline. The combination of an exotic subtropical nature and a modern eco-friendly infrastructure will boost tourist inflow to the island from the most distant parts of the world.