Showing posts with label Hainan News. Show all posts

Tuesday, March 8, 2022

Hainan to reap opening-up dividends

Cargo is being unloaded from a ship docked at a port in Haikou, capital of Hainan province, on Aug 25, 2020. (PHOTO FOR CHINA DAILY)

Foreign investors are flooding into the Hainan Free Trade Port as implementation of a master plan with attractive policy incentives have been unfolding step by step, generating huge opportunities and a wide range of benefits for high-end individuals and corporations at home and abroad.

China released a master plan for the development of Hainan Free Trade Port on June 1. It provided a long list of opening-up policies aiming to build Hainan Island, which is about 49 times the size of Singapore, into a globally influential free trade port by the middle of the century.

The master plan, together with a number of implementation plans issued in the past two months by ministries under the State Council and the Hainan provincial government, provide incentive policies and attractive options such as a low income tax rate for individuals and corporations.

The rate is set at a maximum of 15 percent compared to 17 percent in Hong Kong. The new moves will encourage facilitation of capital flows, expansion of duty-free coverage for goods purchased on the island, and the development of tourism, modern services and high tech industries.

Industry experts said the Hainan free trade port and reform plan is a new example of market-oriented reform policies implemented throughout China in recent years.

Data from the Hainan provincial department of commerce showed that from January to June, a total of 203 foreign enterprises were set up in Hainan, up 24.54 percent year-on-year, with 50 of them established in June.

Industry experts said the Hainan free trade port and reform plan is a new example of market-oriented reform policies implemented throughout China in recent years

ALSO READ: Hainan residents realize dreams of prosperity

The investors came from 30 countries and regions including leading multinational companies such as the Rio Tinto Group from the United Kingdom, energy giant EDF from France and the Charoen Pokphand Group from Thailand.

Newly registered companies hit a record of 75,000 from January to August, a year-on-year increase of 75.26 percent, the highest growth rate in the country, according to the provincial market supervision administration.

"We have keenly felt the 'heat' of interest from overseas business people toward Hainan FTP in the past two months," said Frederick Mang, Hainan Office Lead Partner with PricewaterhouseCoopers Zhong Tian LLP, the first international service company to settle in Hainan in May, 2018.

Mang said a large number of foreign companies have contacted his Haikou PwC office, showing a strong intention to start operations in Hainan Island, which covers 35,400 square kilometers.

Xiang Weiming, global vice president of GE in the United States and president and CEO of GE China, told Shen Xiaoming, the governor of Hainan during a recent working meeting in Haikou, the provincial capital, that GE will push forward in-depth cooperation with Hainan in such fields as aviation, medical service, clean energy and remanufacturing.

Genting Cruise Lines, a division of Genting Hong Kong, announced last week it is working to forge a strategic partnership with Sanya to launch domestic cruise itineraries out of the central cruise hub of Hainan. It will also support the development of a free trade pilot cruise tourism zone on Hainan Island.

"We are keen on supporting the Chinese government's efforts in rebuilding its travel and tourism sector by providing a safe and carefree vacation option for consumers," said Kent Zhu, president of Genting Cruise Lines.

More than 70 international innovative medicine and medical equipment manufacturers have entered their names for an everlasting exhibition that displays the latest and advanced drugs and devices that have not entered the Chinese market, said Gu Gang, administration head of the Boao Lecheng International Medical Tourism Pilot Zone.

The zone was the only one of its kind in China that enjoys special preferential policies such as special permission to import medical technology, medical equipment and medicines that are not yet allowed in other parts of the country.

Gu said that the implementation of the Hainan free trade port preferential policies such as zero tariff, low tax rates and a simplified tax system will draw more big international pharmaceutical companies and professionals to the pilot zone.

The boom of foreign investment is expected to continue as more specified implementation plans roll out one by one and an increasing number of promotions are made at home and abroad, online and offline, said local government officials.

"As it presses ahead with the construction of a free trade port, Hainan will become a new high in China's opening up, " said Bernard Dewit, chairman of the Belgian-Chinese Chamber of Commerce, at an online business promotion conference last week.

Patrick Nijs, former Belgian Ambassador to China and co-founder of the EU-China Joint Innovation Center, expressed his optimism in Hainan-Belgium cooperation in the future. He said Belgium is willing to develop together with Hainan and share the development opportunities of the free trade port construction.

Centrally administrated State-owned enterprises from the transportation, tourism, energy and infrastructure sectors have also enlarged their presence in the Hainan FTP.

The State-Owned Assets Supervision and Administration Commission, the nation's top asset regulator, said that more than 40 central SOEs and their subsidiaries have launched regional headquarters and business units across the province with 47 billion yuan ($6.72 billion) of registered capital.

More than 100 SOEs are expected to enter Hainan FTP in about three years, according to the provincial government.

On the government front, the island province, which connects the world through 103 international air routes and has a population of 9.4 million, will continue to build a fair business environment for global investors that is hailed for system integration and innovation to ensure efficient and high-quality collaboration.

Building a first-class business environment is a key measure to transform government functions, upgrade service, improve the way government officials perform their tasks, and enhance people's sense of gain, satisfaction and happiness, Liu Cigui, secretary of the CPC Hainan provincial committee, said at the mobilization conference on creating a first-class business environment for Hainan Free Trade Port held in Haikou last week.

He added that "we must see to it that high-quality and high standard requirements are implemented throughout each project and reflected in each link of the process".

"Hainan's institutional building and progress will cultivate a more open and fairer business environment, further boosting market vitality and internal growth momentum of the economy," said Xia Feng, executive director of the Institute for Advanced Studies of Humanities and Social Sciences at Hainan University.

He said in the long term, the Hainan FTP will become a comprehensive demonstration zone for economic circulation in terms of cross-border trade and those between Hainan Island and other parts of the Chinese mainland.

"Hainan will play a key role in Southeast Asia if all key factors needed for boosting Hainan to its new leading position shall be implemented," said Yuval Golan, CEO of Unique 1 Asia Ltd, a consulting and investment firm operating in Hainan.

He believes reform of government services will help remove all hurdles and red tape for both domestic and international companies and citizens. "The master plan will make Hainan a hub for innovation, sustainability and true high-quality level of living."

Friday, March 4, 2022

Business registration shortened to 1 day in Sanya

hainan.gov.cn | Updated: 2020-11-30

South China's Hainan has continued to deepen comprehensive reform in business services and as a result, business registration procedures can now be completed in Sanya within one day.

"The Hainan Free Trade Port is really efficient in handling business registration affairs," said a businessman surnamed Li from Tianjin.

Attracted by the opportunities brought by construction of the Hainan FTP, Li sought to start a business in Sanya and the business registration agency Company Steward helped him finish all the procedures, such as business license application, company seal making, invoice application, social security registration, and bank account opening, on Nov 27.

Company Steward was established by several university graduates in March this year to provide services to enterprises in the Sanya Central Business District.

The Hainan FTP has attracted a large number of investors from home and abroad, with more than 170 new companies like Company Steward being established, most of which are from outside the island and some are even run by foreign investors.

According to statistics, a total of 14,629 companies have been registered in Sanya as of Nov 25 since the launch of the master plan for the construction of the Hainan FTP on June 1, up by 117 percent year-on-year.

The comprehensive reform of Hainan's business services is an important reason for the growing number of investors in Sanya, according to Li Junfeng, a registrar from the Sanya administration for market regulation.

According to Li, business entities can now log on to an online platform to apply for business registration at any time. They can submit application forms and the system will process them instantly without the need for registrar review. After confirmation of registration, an electronic business license will be issued and then the entire process of business license, official seal making, invoice application, social security registration, as well as bank account opening can be completed without having to show up in person.

A staff member (R) from Sanya guides an investor on the online business registration process. [Photo/hinews.cn]

Thursday, March 3, 2022

China's master plan paves the way for Hainan's globalized future

China on Monday released a master plan for the Hainan free trade port, through which China has enlisted 60 key measures to turn the tropical island and China's popular tourist destination into an international hub that could compete with global centers such as Dubai and Singapore.

According to the package of special policies, Hainan is expected to "basically establish" a free trade port system focusing on trade and investment liberalization by 2025, to become "more mature" by 2035 and to turn into an "internationally influential, high level" port by 2050.

In order to meet the development plan of the region over the 15-year span schedule, a delegation of the local government has been sent to Dubai, Singapore, etc., to study how free trade rules have been successfully implemented.

An immediate consequence of the proposed policies could be an attempt to turn Hainan into China's new frontier free trade port and transportation hub, as well as opening to foreign investments in fields such as healthcare, biotech, education, entertainment and innovation leaving financial services.

Hainan has always been considered of strategic importance by the Chinese leadership since the era of Deng Xiaoping when it's promoted to the country's smallest and southernmost province in 1988, to April 2018 when President Xi Jinping announced the plan to make the island into China's largest free-trade zone (FTZ).

At this regard, the latest master plan represents a bigger and more ambitious initiative than the previous FTZ in 2018 and will be characterized by tax free on imports and exports, a more opened and friendly investment environment and an increased capital flow.

In global finance, tax plays a pivoting role in the direction of flows of investments and capitals and is a key element for turning a place into an attractive pole for consumers, talents, investors and companies.

Places such as Dubai and Singapore have become over the years so wealthy and prosperous because of the lower than average income tax on both businesses and individuals and these successful case studies unquestionably represent an incentive for Hainan to convert itself into a better and thriving place where to live and to conduct business.

In this sense, the decision to set a 15 percent maximum personal income tax on eligible talents and corporate income tax on enterprises is going to guarantee Hainan the ability to establish a level playing field with other global tax havens.

The strategic location of Hainan, which stands besides Guangdong Province and in a southern position than Hong Kong, plays a key role in extending the border of China and in bridging the mainland territory and its Greater Bay Area with South East Asian countries such as Vietnam, the Philippines and Indonesia, enhancing trade and cooperation and making Hainan the natural entry point to China from the southern part of the world.

The tropical climate plays in favor of making Hainan a natural alternative to Singapore for holding important international political and economic events due to the large experience as a tourist spot and to an already well developed infrastructure of five-star beachfront hotels and a resort-like atmosphere.

In this sense, China could add to the so-called "summer Davos" in Dalian another international renowned location where to hold major events with an immediate benefit for the domestic economy in terms of increased volume of international tourism and consumption and in terms of strengthening China's image and influence on the global stage.

The decision made by China to bet on Hainan represents a wise move in the direction of a further expansion of the country's economy by promoting joint development with the Greater Bay Area.

In light of China's opening-up policy, the country has chosen to develop its crown jewel by converging economic and political interests, making Hainan into a future global center and a natural choice for foreign investments.

Enterprises to enjoy more benefits at Hainan free trade port

Market entities will enjoy a batch of benefits in investment, tax and market access when doing business at the Hainan free trade port, Shen Xiaoming, governor of Hainan, said on June 8.

License application and government approval will not be required for industries that are not prohibited by law or mandatory standards, Shen told a press conference in Beijing.

Foreign investment will be subject to a management system combining pre-establishment national treatment and a negative list designated for the free trade port, further reducing restrictions and prohibitions on the basis of free trade zones, Shen said.

Domestic firms registered in the free trade port will be encouraged to raise funds by issuing shares abroad. The free trade port will also offer tax benefits for firms operating in sectors such as tourism, modern services and high technology by exempting enterprise income tax for the income from their direct investment overseas.

Intl airline set up in Sanya to boost Hainan free trade port

An international airline company will be created jointly by China Eastern Airlines and its partners to serve the construction of the Hainan free trade port, according to a strategic cooperation framework agreement signed on Saturday.

The joint venture, named Sanya International Airlines, will be controlled by China Eastern Airlines, with its stake owners including Hainan Province Transport Investment Holding Co Ltd, Sanya Development Holdings Ltd, Juneyao Airlines and Trip.com Group.

The agreement is among a slew of key projects reached to accelerate the development of the southern island province into an international trade hub and a free trade port in years to come.

Chinese authorities unveiled a master plan on June 1, vowing to build Hainan into a globally influential high-level free trade port by the middle of the century, the Xinhua News Agency reported.

Aviation is Hainan's most important transport solution due to the island province's unique geographical conditions and location, and its rapid development needs a convenient and well-connected aviation network.

China Eastern is one of the first batch of carriers to launch business in Hainan since 1998. Currently, the carrier is operating flights in three airports in the province and transporting up to 3 million passenger trips annually.

Hainan launches first cross-border cash-pooling for multinational group of companies

HAIKOU, June 16. /TASS/. The Bank of China launched a first full-fledged system of bilateral cross-border cash-pooling for a group of multinational companies belonging to the Changfeng Energy Group in order to manage cross-border capital from the center, reported the Hainan Daily.

The cash-pooling system is used to consolidate the funds of a group of companies in one bank account and also allows to control multiple accounts simultaneously. The system of this kind was first launched in Hainan's pilot free trade zone.
Changfeng Energy Group specializes in investment, development and operation of energy projects. The major foreign company mainly invests in gas industry. As cross-border trade on Hainan grows, difficulties arise in the movement of capital between the Chinese and foreign subsidiaries within this multinational group of companies. The first cross-border cash-pooling launched in yuan, the newspaper writes, became an example of innovation in the financial sector based on the free trade account on the island. This system will boost the development of the business of multinational enterprises in the province's free trade port.
A free trade account creates the necessary basic conditions for cash-pooling. Not only enterprises established in the free trade port will be able to open accounts, the newspaper writes, but also companies registered abroad. "This means that foreign parent companies and subsidiaries of transnational groups can open accounts in Hainan's free trade port, which will create a global capital management center in the free trade port of Hainan," the news outlet quotes a representative of the Bank of China's Hainan office.

Innovative breakthroughs can build better pilot FTP: Industry experts

Hainan may seek innovative breakthroughs in economic and social governance to build a better pilot free trade port, industry experts said.

Lin Zhigang, deputy research fellow at the Chinese Academy of International Trade and Economic Cooperation of the Ministry of Commerce, said at an online seminar that to better build the Hainan Free Trade Port, there should be innovations in policies and systems, and the newly-launched master plan for the Hainan Free Trade Port already demonstrates the country's efforts in governance innovation. The online seminar was jointly held by the Hainan Research Institute of the University of International Business and Economics and the Free Trade Zone Research Institute of Nanjing University.

According to the master plan, qualified overseas personnel are allowed to serve as legal representatives of legal institutions, public institutions, and State-owned enterprises in the Hainan Free Trade Port.

The breakthrough is beneficial for Hainan to attract more international talents to serve the free trade port, he said.

In addition, according to the master plan, the free trade port should implement an international evaluation mechanism for talents, and conduct market-based evaluation through salary levels to form a market-oriented talent mechanism.

The policy helps Hainan attract talents of various types in a more flexible and convenient manner, Lin said.

Nie Pingxiang, deputy director of the service trade institute under the MOC, said that the master plan also demonstrated institutional innovation and reform in trade and investment liberalization and facilitation.

According to the plan, for trade in goods, the system of liberalization and facilitation with "zero tariff" as the basic feature should be implemented. For service trade, the measures of "allowing both market access and operation" should be carried out.

UIBE's Hainan Research Institute said in the process of implementing the master plan, it will accurately grasp policy trends, enhance academic research and strengthen academic cooperation to offer constructive suggestions on building the Hainan Free Trade Port.

Hainan Free Trade Port transforms tourist island into int'l retail heaven

The COVID-19 pandemic has devastated the tourism and retail sectors, as much of the world stayed home and airplanes sat idly for months. But in south China's Hainan Free Trade Port (FTP), duty-free stores are ready to bring back the big-spending bargain hunters with the island positioned as an international tourism and consumption destination.

Despite being the country's largest special economic zone since 1988, the southern island province, home to more than nine million people with an area of 35,000 square kilometers (13,500 square miles), is better known for its tropical beach resorts and in recent years, real estate.

In April 2018, China's leadership announced that the country will support the development of an island-wide free trade zone in Hainan with promises of zero-tariff on imported goods, low taxes and relaxed visa procedures for foreigners. The overall plan for a "high-level FTP" with global influence by 2050 was unveiled on June 1.

Among key policies designed to facilitate freer flow of capital and goods cross-border is an independent customs regime on the island. Qualifying goods and items entering China through the FTP will be exempt from import duties, VAT and consumption tax.

This will vastly expand the availability of international brands and bring cheaper imported goods closer to home for Chinese consumers.

In a push to reinvigorate consumer spending, the government has raised the purchasing allowance for duty-free items to 100,000 yuan per person, more than tripling the 30,000 yuan allowed since 2018. The list of offshore duty-free product categories will also be expanded by early July.

"In short, China wants to share the benefits of the Hainan Free Trade Port with the rest of the world and make Hainan feel like heaven for shopping," said Ruslan Tulenov, supervisor at Hainan Provincial Bureau of International Economic Development.

Aerial view of Haitang Bay duty-free shopping complex in Sanya, Hainan Province. /VCG

One-stop duty-free shopping

While gloomy business sentiments persist, there have been encouraging signs that Hainan's revamp is on track. Despite a plummet in tourism in the first half of 2020, the island's duty-free sales hit 1.9 billion yuan (279 million U.S. dollars) in May, up 147.9 percent from the previous year.

The Sanya International Duty Free Shopping Complex, operated by China Duty Free Group (CDFG), reported record one-day online sales during a May promotion.

In addition to the existing outlets at the island's two international airports, two new department stores opened last year to cater to domestic consumers, while the world's largest duty-free mall is under construction in the provincial capital Haikou.

As China reopened its economy, this year's Labor Day holiday saw returning domestic tourists spend 28 million U.S. dollars in Hainan's duty-free shops, far exceeding expectations, according to Charles Chen, president of CDFG.

"It is a very encouraging result and signal to us. Offshore duty-free has become a popular choice for Hainan tourists, whose purchasing power remains strong," Chen said. "They also bring us great confidence for the future."

In recently released guidelines, the provincial government set the annual duty-free sales target at 30 billion yuan (400 million U.S. dollars).

Nevertheless, the coronavirus epidemic's impact has been felt by all those in travel-related industries. During the peak of China's outbreak, over 130 duty-free stores in the country were closed, according to Chen. Around half have reopened since then, but those located at the airports remain closed, he said.

"The problem we have is that there are not enough passengers," said Chen, who noted that the return of air traffic will depend on how the virus can be contained outside of China.

Hainan FTP welcomes foreigners

The recovery of international travel is in line with the plan to keep Hainan wide-open to the world.

To make the new FTP a welcoming place for non-Chinese, the government is looking to introduce a relaxed visa policy for foreign professionals and visitors, including easier applications for visa-free entry and a potential waiver for foreign tourist groups and cruise passengers.

Many foreign nationals who came to the island for the tropical scenery and balmy weather, have stayed for the opportunities and also hospitality of the locals.

Sarah Sinskie, an American who has lived in Hainan with her husband for four years, now works as a presenter for the state-run Hainan International Media Center. She told CGTN she was impressed by the friendly atmosphere and the beautiful environment there. "It's a wonderful place for my kids to grow up," she said.

Sarah Sinskie, an American living in Hainan, works as a presenter for Hainan International Media Center. /Courtesy of Sinskie

Sinskie said that it is easy to find work in Hainan as a foreigner, particularly in the teaching field. "Hainan is definitely a welcoming place for foreigners to live and work, especially when we respect the culture and seek to learn the language. People are friendly and always ready to help us," she said.

According to the government's plan, both public and private sectors, along with state-owned enterprises, will offer some 470 high-paying positions for "international talents," mainly in aviation, hotel management and foreign language teaching.

Hainan opens doors to woo more visitors

Province increases duty-free shopping quota, adds more product categories

Hainan will substantially increase the annual offshore duty-free shopping quota for visitors from Wednesday as part of the efforts to boost development of Hainan Free Trade Port, officials said on Tuesday.

The Ministry of Finance, the General Administration of Customs and the State Taxation Administration said in a statement on Monday that individuals will be allowed to make duty-free purchases of 100,000 yuan ($14,130) every year, compared with 30,000 yuan now.

The categories of duty-free goods will also be expanded from the current 38 varieties to 45, with some electronic products such as smartphones, laptops, game players and wine products being added to the duty-free list.

The duty-free shopping policy was introduced in 2011 to help Hainan develop as a world-class international tourism destination and the shopping quota has been upgraded since then gradually. Offshore duty-free shopping volume stood at 53.8 billion yuan and the number of buyers amounted to 16.31 million by the end of 2019, according to data from the local Customs authorities.

"The move shows that the central authorities are not only using policy tools to meet tourists' spending desire and further stimulate their purchasing power in Hainan, but also injecting fresh momentum to the province's service sector, including airlines, cruises, conferences and exhibitions, catering and hospitality businesses to drive cross-industry collaborative development," said Liang Ming, a researcher with the Beijing-based Chinese Academy of International Trade and Economic Cooperation.

He said this is part of the country's efforts to put in place economic and trade rules that match global standards. This has sent an important signal that China is fully capable of adopting proactive policies and promoting vigorous institutional innovation while mitigating the impact caused by the COVID-19 epidemic.

In addition to helping Hainan attract more tourists from other provinces during the post-COVID-19 era, he said the increased offshore duty-free shopping quota will attract tourists from the Association of Southeast Asian Nations, Russia and other parts of the world.

"The expanded quota policy, especially the lifting of the 8,000-yuan limit on a single duty-free product, will unlock the consumption power of high-end Chinese consumers, attract Chinese residents who will otherwise go shopping overseas to buy international brands, to Hainan island," said Xie Xiangxiang, an associate professor of tourism at Hainan University.

He said duty-free shopping is expected to become the new blockbuster "growth point" for Hainan's tourism industry.

Four duty-free shops are currently in operation in Hainan, with two in Haikou, the provincial capital, one in Boao of Qionghai on the eastern coast of the island and one in Sanya, a coastal resort city at the southern tip of Hainan island.

A new duty-free shopping city is under construction on the western coast in Haikou. Spread over 926,000 square meters and entailing an investment of 12.86 billion yuan, it will be a new shopping paradise when completed in 2023, according to the city government.

Luo Zilian, head of the General Administration of Customs' Sanya branch, said Hainan has benefited from its visa-free access for 59 nations by tapping into the local tourism boom and the Hainan Free Trade Port's greater connectivity. Customs authorities will continue to upgrade supervision over e-commerce activities to help consumers purchase more duty-free products.

The Ministry of Finance said on Tuesday that companies registered in the Hainan Free Trade Port and operating businesses in areas encouraged by the government can enjoy lower corporate income tax rate of 15 percent, which is lower than the general level of 25 percent for most companies in the country.

For foreign companies' income earned through their newly increased direct investment in tourism, modern services and high-tech industries in the port, the corporate income tax will be exempt, according to the ministry.

The Ministry of Finance and the country's tax authorities also clarified that income-tax exemptions would be given to high-end and most-needed talents. All the favorable tax policies are effective until 2024 and seek to support the development of the Hainan Free Trade Port, said a statement on the finance ministry's website.

Foreign diplomats hail Hainan's free trade port as promising

Hainan will continue to expand its "circle of foreign friends" and will attract more and more global resources to develop the region's economy

HAIKOU, August 18. /TASS/. The diplomats who visited Hainan on August 13-15 praised the prospects for the island's free trade port, reported www.hihainan.info.

More than 70 foreign diplomats from 37 countries were on a three-day visit to Hainan to discuss international trade and economic cooperation with this Chinese region. They visited the sites with companies operating in the field of the Internet industry, cruise and medical tourism, modern services and advanced technologies.

“Over these few days we saw a lot of ambition, energy and goodwill here. We would like to see how the concept of Hainan's free trade port develops further, we hope that the Netherlands, with its knowledge and technology, can also play a role and contribute to its creation and promotion on a higher level," Consul General of the Netherlands in the Chinese city of Guangzhou Michil Birkins was quoted as saying.

Peleg Levy, Israel's Consul General in Guangzhou, noting the great importance of Hainan as a trade and transport hub, also stressed that this province is also of interest as a partner for the development of scientific and high-tech cooperation. According to the diplomat, Israeli companies have already held a seminar with the Lecheng International Medical Tourism Zone Office on the prospects for cooperation in the field of digital medicine.

During the visit, the diplomats visited Sanya — the science city of Yazhou Bay, the central business district and the duty free zone. Consul General of the Republic of Belarus in Guangzhou Andrei Popov highly appreciated the importance of the city's business center. According to him, as soon as this project is completed, it "will create new opportunities for the development of trade cooperation between different regions of Belarus and Hainan."

The recent diplomatic visit was the largest in terms of the number of foreign representatives who visited Hainan at a time since the province was formed in 1988. According to Wang Sheng, head of the international relations department of the Hainan Party Committee, "the arrival of foreign diplomats indicates that Hainan's free trade port is drawing more and more attention from the international community." He noted that Hainan will continue to expand its "circle of foreign friends" and will attract more and more global resources to develop the region's economy.

China's Ministry of Commerce plans to introduce new liberalization policy on Hainan

The Chinese Ministry of Commerce intends to create a more open economy on the island

HAIKOU, August 19. /TASS/. China's Ministry of Commerce intends to test a number of economic liberalization measures in some experimental areas of the Island of Hainan, reported the Hainan Daily with reference to the complex program for the innovative development of pilot zones.

The Chinese Ministry of Commerce proposes to quit some formalities of doing business on Hainan to create a more open economy on the island. For example, the country's authorities are considering the possibility of canceling the registration of foreign trade participants involved in the export and import of technologies. According to the government's plans, this measure should help revitalize the economic activity of these market players.

In addition, the authorities plan to cancel the registration procedures for franchising on Hainan. Franchisors (those who provide a franchise) will only need to disclose information about those who purchase a franchise on the website of the Ministry of Commerce at least 30 days before an agreement between them is reached. This will not apply to franchise businesses between regions.

Also, the Chinese authorities are going to allow foreign institutions to independently hold economic and technological exhibitions on the island. At the same time, the title of events should not include the words "China", "Chinese" and other similar wording. These events must be coordinated with the Hainan administration, regardless of whether they are held exclusively by foreign organizers or jointly with the Chinese partners.

In addition, the authorities intends to liberalize policies in Hainan's Lecheng International Medical Tourism Zone. They will simplify the procedure for obtaining visas for foreign patients, payments for treatment and diagnostics, as well as calculating health insurance.

In June the Central Committee of the Communist Party of China and the Сhinese State Council published the “General Program for the Establishment of a Free Port on Hainan,” according to which the island’s administration intends to create an effective system to fulfill a number of important social and economic goals by 2025, and within 10 years to decisively enhance the innovative mechanisms for the region's development.

Hainan to boost wedding tourism industry

HAIKOU, August 28. /TASS/. China's Hainan intends to promote the development of the wedding tourism industry, it expects to go global in providing services for those who spend their honeymoon on the island. This was announced at the Shanghai presentation of the province's potential in this field, organized by the Hainan Administration of Tourism, Culture, Radio, Television and Sports.

The presentation took place in the northern part of the Bund, in Hongkou urban area. The event was attended by over 100 representatives of wedding event planners based in Shanghai and neighboring eastern provinces.

The presentation was part of a joint effort by the Hainan authorities to promote the province's free trade port and turn the island into an international center for tourism and consumption. The head of the department Xie Qiuxiong told the participants of the event about the favorable conditions created in the province for the development of wedding tourism.

In particular, since July, Hainan raised the quota for one person for purchases in duty free shops from 30,000 to 100,000 yuan (from $ 4,200 to $ 14,200), the list of duty free goods has been expanded as well. According to Xie Qiuxiong, the new policy is in the interest of consumers and will allow young couples to purchase more items such as jewelry, watches, wedding dresses and shoes from duty free stores.

There are currently over 100 hotels and 15 tourist attractions on Hainan offering a variety of wedding services. In addition, there are about 500 wedding photo studios and about 1,000 wedding agencies on the island.

According to official figures from the Hainan Wedding Tourism Association, in 2019, about 280,000 couples spent their honeymoon in Hainan province. About 380,000 more came to the province to take wedding photographs. Over the past year, about 2,600 wedding ceremonies were organized on the island.

Hainan betters the procedure of obtaining work and resident permits for foreigners

HAIKOU, October 13. /TASS/. The Hainan authorities have reduced the time it takes to process work and residence permits for foreign specialists from 30 to 10 working days.

The island's authorities decided to comprehensively simplify the employment procedure for foreign highly skilled workers in order to promote the liberalization of the regional economy and the construction of Hainan's free trade port. For example, earlier, foreign specialists had to provide the provincial administrative bodies with 22 types of materials and fill in 93 fields with information in the documents, now their number has decreased to 18 and 73, respectively.

In addition, in the past, citizens of other countries planning to relocate to this Chinese province for work had to apply separately for employment and registration to two different departments: the Foreign Specialists Bureau and the Migration Department. Now a package of documents can be submitted at a time via the integrated system through an employer in all major cities and industrial parks on Hainan. The information about a new employee is uploaded to an online platform, and the relevant departments can get everything they need.

More than 10,000 foreign specialists currently live on Hainan, according to official figures. They work in education, tourism, transport, business services, science and technology, culture and other fields, and contribute greatly to the construction and development of Hainan's free trade port.

Over the recent years, the Hainan authorities have been pursuing a targeted policy of attracting valuable personnel. Thus, for example, a preferential income tax with the maximum rate of 15% is established for this category of employees. Moreover, the Hainan authorities provide a temporary residence permit for up to five years or a residence permit for foreign professionals and their family members.

Hainan's Haikou presents the plan on bettering business climate

HAIKOU, October 16. /TASS./ The Haikou authorities (the administrative center of Hainan) have unveiled a plan to better the business climate for 2020-2025, reported www.hinews.cn.

According to the news outlet, the measures were taken to promote the construction of Hainan's free trade port. The document includes three key initiatives: providing high-quality services to companies, promoting investment, and strengthening monitoring of the development of business environment.

The first initiative includes accelerating and optimizing the process of creating new enterprises entering Haikou's market, as well as improving the regulations in this area, improving the protection of the legitimate rights and interests of companies. Investment promotion means improving corporate finance, creating unified dispute resolution services. Boosting monitoring includes improving the quality of public services provided to companies, enhancing the system for protecting intellectual property rights.

According to the news outlet, 18 key indicators were established to control the plan's implementation. By 2022 they should reach the "good" mark, by 2025 — hit the "excellent" mark.

The authorities presented a plan for the free trade port’s development on June, 1. In accordance with the plan, the Hainan province will be turned into a special customs zone. The country’s government intends in general to wrap up the creation of the free trade port on the island by 2025: by this time the island should acquire a system to ensure free trade and investments.

By 2035, the free trade port and its model will become more solid. By this time, Hainan intends to ensure the freedom of trade and investments, trans-border movement of capital, people and shipping.

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.

Hainan presents plan on improving business climate on the island

HAIKOU, October 25. /TASS/. The Hainan authorities have unveiled an action plan for 2020-2021 to create a top-notch business climate on the island. The document was published on the official website of the provincial administration.

The Hainan authorities intend to improve the conditions for doing business on the island in 11 areas, each of which has its own section in the document. These include the conditions for setting up a business, obtaining construction permits, registering property, obtaining loans, taxation, cross-border trade, investor protection, contract execution, bankruptcy, talent acquisition, and a service-oriented government.

The Hainan authorities are planning 31 activities to stimulate the activity of various market players and create an attractive international business environment based on the rule of law in the province. In particular, the Hainan authorities plan to simplify registration procedures for starting a business in key industrial parks - Yangpu Economic Development Zone, Lecheng International Medical Tourism Zone, Jiangdong New District and Yazhou Bay Science City.

The provincial government also intends to introduce a joint mechanism for lending to small and medium-sized enterprises in the scientific and technical fields, which will involve the state, banks and insurance companies. The government will select innovative SMEs, after which insurance companies will provide guarantees and banks will issue long-term loans. In the areas of tourism, modern services, high technology and other key industries, a guarantee lending model will be used, when big enterprises will act as guarantors for small companies.

In addition, the Hainan administration plans to streamline logistics in cross-border trade. In order to speed up customs clearance, the provincial authorities intend to improve the unified submission system for providing services to participants in trade chains, comprehensively promote a simplified two-stage declaration of imported goods, and optimize paperless document flow in the Yangpu container port.

First special Hainan talent cultivation fund begins operation

On October 30, 2020, the first partnership meeting of the Hainan Rongzhi Talent Innovation and Entrepreneurship Fund Investment Partnership Enterprise (Limited partnership) was successfully held in Sanya Yazhou Bay Science and Technology City, marking the official start of operations for the 1st phase of the Hainan Provincial Talent Fund.

The Hainan Provincial Talent Fund, which has a target of 1 billion yuan, mainly invests in early and mid-stage enterprises that are established both directly and indirectly by talented individuals and teams in accordance with the Action Plan for the Introduction of Talents in Hainan (2018-2025). The fully-funded first phase of the fund totals 210.1 million yuan. This fund is not only the first special fund for talent cultivation in Hainan but also the first government-invested fund established in cooperation with key industrial parks in Hainan.

The establishment of the Talent Fund is an innovation to transfer financial funds from an administrative allocation to a market orientation. Additionally, the Fund will be complementary to other special talent cultivation capital in Hainan.

The Hainan Provincial Finance Bureau and the Talent Development Bureau of the CPC Hainan Provincial Committee plans to make the best use of the first phase of the fund’s operation to attract more social capital for innovation and entrepreneurship for talented individuals in Hainan.

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.

Sanya's international asset trading center begins operating

HAIKOU, November 3. The Sanya International Asset Trading Center which began operating on November 1 will be an important part of Hainan's free trade port project, according to the local newspaper "Hainan Daily".

This center, according to the head of the Provincial Treasury Department Chen Yang, will cover domestic needs, expand openness to the outside world, link Chinese financial institutions with foreign assets, and integrate the digital economy with real financial and scientific and technical sectors. The work of the center, he said, will become a kind of driving force for increasing international exchanges, the movement of goods and capital.

The Sanya center also became the country's first tourism asset trading platform, the newspaper writes. The work in that direction will promote closer cooperation between companies providing services for logistics, accommodation, organization of tours and food for tourists.

The creation of new financial instruments and platforms is an important part of setting up a free trade port in the province. A new stage began after the publication of the program for its development on June 1. According to the document, Hainan will be turned into a special customs zone. The Chinese government expects to complete the creation of Hainan's free port by 2025: by this time, a system for ensuring free trade and investment should be established on the island.

By 2035, the free port and its model will become more solid. By this time, it is planned to ensure freedom of trade and investment on Hainan, cross-border movement of capital, entry and exit of people, freight traffic.

Hainan eyes creating international community for entrepreneurs

HAIKOU, November 3. China's Hainan is planning to create an International Business Community to promote an attractive international business climate on the island, reported the Hainan Daily citing the region's International Economic Development Department.

The community will act as an intermediary between business and the government of Hainan, their representatives will be able to conduct dialogue and openly exchange information at the platforms organized by the organization. The new structure will also facilitate cross-sectoral communication, for which the community of entrepreneurs intends to hold thematic seminars for companies in tourism, high technologies and modern services.

In addition, this organization plans to become a platform for interregional and interstate communication of businesses interested in the construction of Hainan's free trade port. In addition to organizing functions, the organization will also exercise control over the "connecting" various market participants, the publication notes.

The Hainan authorities believe that the world-class business climate in the province is very important, and they consistently create conditions for its development. In October, the island's administration published a plan for 2020-2021 to better business environment in various ways. In particular, the document highlights the conditions for starting a business, obtaining a permit for construction work, registering property, obtaining loans, taxation, cross-border trade, protecting investors, fulfilling contracts, filing bankruptcy, attracting talent and creating a government that is focused on the provision of services.