Wednesday, March 2, 2022

Hainan's capital to boost development of an ideal business climate

 Hainan's capital Haikou will introduce a number of innovative measures to create a top-notch business environment in the region, the provincial party committee announced on Monday.

 

"Haikou is constantly at the forefront. <...> We expect that under its influence, Hainan's other cities and counties will make a new leap forward and create a first-class climate for business," says the statement obtained by TASS.

 

It emphasizes that the Haikou authorities will "continually promote innovation, unleash its multifaceted potential," and "directly contribute to lay a solid foundation" for improving the business environment across the island. It is expected that by 2025 the city will become one of the most attractive places for investors in China.

 

Plans for the future


As the authorities specified, in the near future the Haikou administration plans to use means that will ensure intensive economic growth of the entire province. After the General Program for the Development of Hainan's Free Trade Port was published on June 1, the authorities, in accordance with the strategy of the Chinese State Council, began to boost the liberalization process even more actively, while simultaneously working to improve control mechanisms.

 

The city is offering incentive bonuses of 15 million yuan (about $ 2.3 million) for high-profile companies that are promoting the introduction of the latest manufacturing technologies and planning an initial public offering on the Shanghai and Shenzhen stock exchanges. In addition, a wide range of benefits and privileges has been drafted aimed at creating new growth factors. Thanks to them, the government intends to draw companies that can play a key stimulating role in the development of the entire Island of Hainan in the long run.

 

Small business support in Haikou is being implemented through the introduction of new financing models. They make it possible to more accurately assess the risks of lending by organizing close interaction between the banking sector and a number of government agencies, which help to provide an objective assessment of enterprises in need of loans.

 

Haikou is one of the 11 strategically important zones of the regional free trade port, where the "unified system" is actively implemented in the investors' cooperation with the authorities. A multidisciplinary service platform has been created in the city, which allows entrepreneurs to relieve most of the worries related to registering a company, obtaining competent legal advice, finding a suitable location for an office and employees' apartments, hiring employees, protecting intellectual property, listing on the stock market. All of these services are provided in both Chinese and English. Thanks to this mechanism, businessmen can organize an efficient production process on Hainan in the shortest time possible.

 

The new district of Jiangdong continues to play a particularly important role in attracting investors this year, which, according to official data, has attracted about 3, 000 additional companies to Haikou. This includes many of the world's most competitive commercial enterprises.

"Without successful projects, there is no successful development, and dynamic growth is impossible without big facilities," the local administration explained the principles of selecting key investors.

 

Hainan's development program


The implementation of all these measures is carried out in accordance with the state program, according to which by 2025 an effective mechanism to stimulate sustainable and long-term growth should be set up on Hainan. It is expected that thanks to new methods, many of which are being introduced in China for the first time, the province will be able to fulfill a number of key socio-economic tasks necessary for the formation of a powerful new financial and economic center in the south of the country. It is expected that by 2035 both the economic and innovation potential of this region will maximize, and it will become one of the most attractive places for international investors.

 

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.

 


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