Volume of used foreign capital in Hainan increases 4.9 times in January-August

 

HAIKOU /China/, October 28. /TASS/. The volume of used foreign capital in actual use the southern Chinese province of Hainan in January - August this year was $1.907 billion, with an increase of 386% compared to the same period last year, as reported by China's Ministry of Commerce.

 

 

According to a document published on the official website of the Ministry, there were 1,367 enterprises with foreign capital on the island during this period. This is 3.4 times more in annual terms. 

 

 

At the end of 2020, the amount of foreign investment actually used in Hainan doubled year-on-year to $3 billion.

 

 

Last June 1, the Central Committee of the Communist Party of China and the State Council of China published a program for the formation of a free trade port in Hainan. The document provides for the creation of a special customs zone on this tropical island. The PRC authorities plan to complete the construction of the free port on the territory of the province in 2025, by which time the island should have a complete system of free trade and investment. By 2035, Hainan is expected to have free trade and investment as well as cross-border capital flows, entry and exit of people, and freight transportation. 

 

Hainan’s Haikou Meilan International Airport opens new terminal

 

HAIKOU /China/, December 2. /TASS/. The Meilan International Airport in Haikou (South Hainan province) officially opened it’s second terminal on Thursday, according to the Hainan International Communications Network reported.

 

The area of the new terminal is nearly 300 thousand square meters. It was designed by a joint effort of Chinese and foreign companies. The architects have integrated many elements of Hainan culture into its design. With the help of various cunningly placed decorative elements, which create images of waves, beaches and landscapes, the central hall of the terminal looks like a tropical island.

 

The terminal is designed in a way, which ensures that there is no more than a five minute walking distance from the passenger security check to the farthest boarding gate in the clear zone. The terminal is equipped with 110 check-in counters, automatic check-in and baggage drop-off counters, as well as the most advanced equipment, including facial recognition technology, which will speed up the passenger service process. It is also equipped with all necessary transportation infrastructure, as well as a parking lot for 3,700 cars on an area of approximately 170,000 square meters.

 

The expansion of the Meilan Airport playes an important role in the creation of Haina’s free trade port, since air transport takes on the bulk of passenger and cargo traffic. New runways with a total length of 3.6 kilometers were built, as well as a second terminal ss part of the second phase of the airport expansion project. A total of 17.8 billion yuan (about $2.7 billion) was invested in the construction of the new infrastructure.

 

The new infrastructure will allow to increase the total annual passenger traffic up to 45 million people, and the volume of cargo up to 600 thousand tons. There are also plans to increase international passenger traffic from 8 million to 10 million people annually.

 

Hainan's administrative center to boost development of modern services in 2022

 

HAIKOU /China/, Jan. 4. /TASS/. Haikou city, the administrative center of China's Hainan province, plans to boost the development of the modern services sector in 2022, the Hainan Daily newspaper reported.

 

"We are striving to create a cluster of headquarters and leading companies in the modern services sector, actively attracting businesses engaged in offshore trade, international investment and mutual settlements," the newspaper quoted the city's Commerce Department as saying. Haikou authorities are making efforts to form a reliable resource base, which is necessary for the industry structure to produce a wide range of products with high added value.

 

As noted by the publication, e-commerce is actively developing in the city. For instance, according to preliminary official estimates, Haikou's online transactions in 2021 amounted to some 180 billion yuan ($28 billion) and are expected to continue to grow. In addition, the local government has recently started working with companies that provide healthcare services and train medical professionals.

 

"We are also fostering cooperation among various companies, taking steps to do so on several fronts at once," the local investment development office informed. According to the department, Haikou will soon seize additional opportunities to boost the growth dynamics of the cross-border trade sector.

 

According to the government plan, in the coming years, the provincial capital will attract a number of Chinese and international banks and large insurance companies to form a free trade port of Hainan and finance numerous projects related to the modern services sector. For this purpose, the city is actively building infrastructure, creating comfortable living and working conditions for highly skilled professionals. 

Hainan Education Innovation Pilot Zone attracts 23 universities from across the globe

 

HAIKOU /China/, January 13. /TASS/. The Hainan Lingshui Li’an International Education Innovation Pilot Zone has signed cooperation agreements with 23 universities from China and other countries, the Hainan Daily reported.

 

Ten Chinese higher education institutions are cooperating with the cluster. They include Peking University, Nanjing's Southeast University, Tianjin's Nankai University and Chengdu's University of Electronic Science and Technology of China. Thirteen foreign universities have also signed agreements with the experimental educational zone, namely Canada's University of Alberta, UK's University of Glasgow, the Stockholm School of Economics and the USA's Rutgers University, Rice University and the University of Michigan.

 

The education cluster administration expects to reach 1,000 students in the International Education Zone in the fall semester of 2022.

 

The International Education Innovation Pilot Zone is located on the Li'an Peninsula in Linshui Li Autonomous County in the southeast of Hainan Island. It is one of the 11 key areas of Hainan Free Trade Port. The main purpose of the project is to create a platform for cooperation between Chinese and foreign universities, provide international-class educational services, develop innovation in education, and attract foreign universities to manage local educational institutions. 

Hainan waives import duties on certain types of equipment for entertainment industry

 

HAIKOU /China/, February 17. /TASS/. Hainan province abolished import duties on some types of imported equipment used in the entertainment industry. This was announced by China's Ministry of Finance.

As noted in the statement of the ministry, the list of goods exempt from customs duties included vehicles for amusement rides, for roller coasters, components for merry-go-rounds, sports simulators and equipment for water parks. The new measures apply to importers who are registered in the province and use the above products in the service sector.

In addition, companies importing said equipment to the island from abroad are exempt from VAT and consumption tax on foreign products. These measures are expected to accelerate the formation of Hainan's free trade port and promote the competitiveness of the local entertainment industry.

The list of goods exempted from taxes and duties with the indication of foreign trade codes is published on the website of the Chinese Ministry of Finance. The eight items of nomenclature appearing in it cover a broad list of products occasionally purchased for cultural and leisure parks and various tourist facilities.

Gradually lifting trade barriers

As of December 1, 2020, Hainan has dropped duties on a wide range of products used in manufacturing and services, from agricultural products to liquefied natural gas to aircraft and helicopter components. Eligible importing companies were allowed to import products related to 169 items of the customs nomenclature onto the island without paying any fees. The list of goods exempt from taxes included rye, barley, oats, buckwheat, as well as sunflower seeds, hydrocarbons and chemical raw materials, various types of wood, boat motors, parts from boats and yachts, radar and aerospace equipment.

Last March, the Chinese government issued a duty waiver on technical equipment imported into Hainan for use in infrastructure construction, manufacturing, research and development, logistics, tourism, health care, and inspection and repair work. These measures apply to both machine tools, machines, instruments and other devices, as well as their components.

More than 200 duty-free stores to participate in Hainan Consumer Expo

 

HAIKOU /China/, February 17. /TASS/. China Duty Free Group (CDFG) is actively participating in the organization and work of the China International Consumer Products Expo which will be held in Hainan Province (South China) in April. According to the Hainan International Communication Network, CDFG will organize more than 200 duty-free stores to participate in the exhibition.

CDFG will co-host the Duty Free & Travel Retail Global Summit as well as the Sustainable Consumption Forum at the event, according to the story.

In addition, the group will organize more than 200 duty-free stores and procurement specialists to participate in the exhibition: to establish contacts and negotiate with global brands and promote procurement activities.

The Second China International Consumer Products Expo will be held in Haikou (the administrative center of Hainan) from April 12 to 16. The exposition area will exceed 100 thousand square meters.

The First China International Consumer Products Expo was held on May 7-10, 2021 in Hainan International Exhibition Center in Haikou, which was attended by representatives of 70 countries and regions, more than 2.6 thousand premium brands and more than 1.5 thousand companies. The event attracted about 240 thousand visitors. 

Hainan expands market before launching new offshore zone mechanisms

 

HAIKOU /China/, February 19. /TASS/. Hainan authorities made progress in 2021 in expanding the regional market to create a special offshore zone on the island and launch new free trade port mechanisms ahead of the transition of the local customs control system to a new mode of operation, Wu Mingyue, ddeputy head of the Provincial Development and Reform Commission, said.

"Our province has made good progress in the first phase of market expansion," he told a news conference on the implementation of the regional government's special measures announced in early April last year. "In the next phase we will strengthen coordination between the governing and subordinate structures, we will take the initiative into our own hands <...> to strengthen the strategic leverage involved in the run-up to the closure of customs offices throughout the island (referring to the transition to the foreign trade mechanisms of the new offshore model until 2025 - TASS note)".

As the official clarified, Hainan showed encouraging results last year in accordance with the task set to develop a cultural and humanitarian program, to implement projects on establishing an advanced medical and health care system, as well as in the field of environmentally friendly energy. In the near future, he said, the provincial government will continue to implement consistent reforms in these areas as well as in the financial sector and education.

New steps in the cultural sector

Among the achievements in recent months, Wu Mingyue mentioned the Hainan International Cultural Art Trading Center in Sanya City, which opened in late January. Beijing Poly International Auction held a festive auction to celebrate its opening, with a total of 800 luxury and antique items on display and sales of more than 100 million yuan (more than $15.7 million).

"This art trade center will facilitate exhibitions, deals and auctions, <...> help reduce the cost of buying art," he stressed. According to the official, one of the main tasks in this direction is to form a coherent industry chain in Hainan that will interact closely with international markets.

Modern online health services

The deputy head of the committee noted that in recent months, regional authorities have created a solid foundation for the development of a multifunctional platform to provide high-quality telemedicine and pharmaceutical services online. "This is a very important project. The Hainan e-prescription center is the first provincial-level government pilot platform created to provide demand-driven services to the public, based on comprehensive health insurance, health care and pharmaceutical control data," he said.

Wu Mingyue explained that the new system will simplify procedures related to diagnosis and prescription, purchase and delivery of drugs. "This prescription center will involve all medical institutions in Hainan. Gradually, it will form a system of interaction on a national scale," he added.

Advanced aesthetic medicine

Wu Mingyue also said that the provincial government is successfully developing the beauty and health industry. In this regard, some 120 kinds of national and foreign cosmetology products will already be on display in Hainan in the near future. "These advanced products from around the world are being introduced on an experimental basis under licenses," he said. "They will be available on the territory of the Hainan Boao Lecheng International Medical Tourism Pilot Zone after they pass the inspection of the competent agencies."

The official added that amid the ever-growing demand, local authorities intend to actively attract qualified personnel both from other regions of the PRC and from abroad. "Lecheng will become a key center for applying advanced drugs and providing high-quality aesthetic medicine services," the deputy head of the committee said.

According to Wu Mingyue, an international consumer zone is also being established on the island. It is closely connected with the tourism projects of the One Belt, One Road Initiative. "This way, everyone who will visit Hainan for vacation will not only be able to take advantage of [the local system] of duty-free trade, but also try out high quality cosmetology services without leaving the country," the official explained.

Advanced pharmaceuticals

Wu Mingyue also pointed out that the authorities have successfully implemented a program to establish a large-scale market for medical products in Hainan. For this purpose a pharmaceutical cluster represented by the leading companies of the PRC and other countries is being  created in the administrative center of the province - Haikou city. In addition, intensive work is underway to create research and production facilities that will enable China's southernmost region to lead the way in cutting-edge technologies in healthcare.

"Once in operation, these projects will have an added value of 2 billion yuan (more than $315 million) a year, generate 200 million yuan (more than $31 million) in annual tax revenue and create about 900 new jobs," Wu Mingyue said. As he noted, it is about forming an industrial base for the production of medical equipment created with the latest developments in smart technology.

"We will apply effective incentives so that advanced pharmaceutical companies build innovation capacity and promote R&D projects," the official added.

Development of environmentally friendly transport system

The deputy head of the committee recalled that by 2030, local dealerships will completely stop selling cars on traditional fuels. A highly efficient network of gas stations for hybrid and electric cars will be created all over the island. For this purpose, a special operator company Yizhangwang and a special platform have been established, with the Hainan Electric Grid Company and the Hainan Transportation Investment Holding Company participating in the development.

According to Wu Mingyue, the project is carried out using digital technology. An app has been created for the convenience of green vehicle owners, allowing them to access the service throughout the island. "Yizhangwang will continue to optimize the control functions of the relevant platform, <...> introduce smart technology, and help make the service more convenient for individual users and companies," he summarized.

In January 2021, the Hainan administration said that by 2025 the local customs checkpoints will cease to operate in their current form. According to Shen Xiaoming, secretary of the provincial party committee, by 2023 all the necessary conditions for this will be in place, and then within two years the authorities plan to agree on the secondary details of the new mechanism. In about three years, island residents will be categorized as offshore residents with a special legal status different from other mainland Chinese citizens.