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The administration of Hainan's Yangpu International Port, in cooperation with the large German consulting company Rudolf Scharping (RSBK), has accelerated the promotion of the project to create a Sino-German industrial park, reported the Hainan Daily.
According to the publication, it is planned to locate logistics, energy and petrochemical companies, enterprises specializing in telecommunication technologies, in the development in the field of artificial intelligence, as well as organizations engaged in commercial activities in the field of health care, in the production of eco-friendly vehicles and new materials.
According to the local authorities, one of the key tasks of the project is to form a highly efficient industrial cluster in this part of the province. In order to accelerate the adaptation of investors from Germany to the development program of Hainan's free trade port, RSBK specialists, together with their Chinese counterparts, are working out new opportunities for mutually beneficial projects. At the current stage, according to the newspaper, they have begun to agree on a number of important details regarding the increase in the inflow of foreign capital into Yangpu's economy.
According to official statistics, the port's cargo turnover last year increased by 44%, exceeding 1 million standard containers.
Yangpu plays a key role in the development of China's transportation and logistics network. In 2020, the GDP of this economic region, which is home to more than 89,000 residents, exceeded 27.9 billion yuan ($ 4.3 billion), an increase of 10.5%. In accordance with the comprehensive plan for the formation of a new integrated sea and land corridor of the Chinese State Committee for Development and Reforms, by 2035 the port will become a key point for the distribution of trade flows from the country's various regions to Southeast Asia and Oceania, Europe and North America. It is expected that by 2025 it will become a major regional transport hub, through which up to 5 million containers will pass annually.
Participants take pictures at the opening of the RCEP Media& Think Tank Forum in Haikou, Hainan, on Sunday. [Photo by CHEN ZEBING/CHINA DAILY]
The introduction of 28 new measures to facilitate faster goods and service trade at the Hainan Free Trade Port will boost the port's high-quality development and help it achieve its phased growth goals before 2025, experts and business leaders said.
The new measures, jointly announced by the Ministry of Commerce and other 19 central government departments in April, are in response to the demand of market players and part of the master plan announced in June last year, they said.
The measures not only provide strong policy support for the development of the Hainan Free Trade Port and promote the "dual circulation" development paradigm, but also show China's determination to further liberalize international trade, help develop an open world economy, and expedite globalization, said Sang Baichuan, director of the Institute of International Business at Beijing-based University of International Business and Economics.
While 13 of the 28 measures focus on goods trade, the rest deal with trade in services. In some special areas, the authorities have done away with licenses for mechanical and electrical goods, and support the development of secondhand car exports and new offshore international trade.
Yet despite having a long coastline, Sang said, Hainan does not have some of the characteristics of the Hong Kong Special Administrative Region, or Singapore or other successful port cities, so it needs to develop in accordance with its real conditions and needs. As such, the free trade port should use its unique environmental and geographical features to advantage. And that Hainan is rapidly building a modern industrial system supported by tourism, modern service industries, emerging industries and tropical agriculture shows it is moving in the right direction, he said.
Chi Fulin, president of the Haikou-based China Institute for Reform and Development, said the free trade port must take appropriate measures to complement ASEAN's tourism sector, and integrate with the region's commodity and factor markets. For example, the free trade port should use its import tariff exemption and origin of production policies to attract agricultural products from ASEAN member states to process them in Hainan, create more than 30 percent added value and sell them in China's expansive market without paying any tariffs, he said.
After the COVID-19 pandemic is effectively contained, Chi said, Hainan should deepen cooperation with members of the Association of Southeast Asian Nations in cruise tourism, tourist exchanges, resource sharing and joint marketing.
"With its unique location and policy advantages, the Hainan Free Trade Port will offer further growth potential for foreign companies. We are confident in this path for the future with the support of major events such as the China International Consumer Products Expo, and other additional policies," said Jean-Etienne Gourgues, managing director of Pernod Ricard China, a French wine and spirits group.
The authorities have shortened the clearance time for imported goods and continuously strengthened intellectual property rights protection in Hainan, he said. Eager to seize a bigger share of China's lucrative market, the French company opened its first Martell retail store in Shenzhen, Guangdong province, last year, and the second in Sanya, Hainan province, in January.
Highlighting the importance of the new policy measures, Cui Weijie, vice-president of Beijing-based Chinese Academy of International Trade and Economic Cooperation, said they have been designed to serve the needs of the free trade port and will give full play to its competitive advantages in the cultural, digital trade, tourism and modern service sectors.
Over the past three years, the number of high-tech companies in Hainan has surged by 273 percent, internet industry revenues have risen by 192 percent, and the supporting role of the high-tech industry has become increasingly vital, according Ministry of Commerce data. Hainan's digital service trade reached 6.73 billion yuan ($1.04 billion) in 2020, up 130 percent year-on-year, while the container throughput of Yangpu Port exceeded 1 million twenty-foot equivalent units.
As the master plan requires the free trade port to initiate independent customs operations for Hainan in order to identify and plug any safety loopholes before 2025, these preparations for trade and investment liberalization are a prerequisite to reach the target, Cui added.
While independent customs operations will cover the whole island of Hainan, the current value-added tax, consumption tax, vehicle purchase tax, urban maintenance, construction tax, education surcharges among other taxes and charges will be streamlined based on laws, said Shi Zongwei, director-general of Haikou Customs District, a local unit of China's General Administration of Customs. Work on charging and collecting sales tax on retail of goods and services has already started, he added.
The government's new policies are attractive for domestic companies, too, said Qian Jiannong, chairman and CEO of Fosun Tourism Group, the tourism business of Shanghai-based conglomerate Fosun International. By developing into a global tourism and shopping hub, Hainan will provide an international platform for companies doing business in the province.
The opening of the new route made it possible to reduce the delivery time of goods to two days and reduce transport costs
HAIKOU. June 9. /TASS/. A direct cargo flight has been launched between Milan and Hainan's Haikou designed to deliver luxury brands to the island. The first plane carrying cosmetics, bags, clothing and other luxury goods landed at Meilan International Airport on June 7, according to www.hinews.cn.
Prior to the launch of this new air cargo route, premium goods manufactured in Italy and Switzerland were delivered to Hainan mainly by sea or indirect flights, which took from 7 to 60 days. The opening of the new route made it possible to reduce the delivery time of goods to two days and reduce transport costs.
A direct cargo flight has been launched between Milan and Hainan's Haikou designed to deliver luxury brands to the island.
The Milan-Haikou cargo route, the news outlet writes, will not only become a new direct and fast channel for promoting trade and other exchanges between Hainan, Italy and other European markets, but will also contribute to the transformation of Hainan's free trade port into a global duty free trade center and consumer hub with premium goods from all over the world.
A woman browses products at a duty-free store in Haikou, Hainan province, on June 18.
WANG CHENGLONG/FOR CHINA DAILY
HAIKOU－South China's island province of Hainan has seen exponential growth in duty-free sales in the year after a new policy was implemented.
Hainan's offshore duty-free sales hit 46.8 billion yuan ($7.2 billion) in the period from July 1, 2020 to June 30, soaring 226 percent year-on-year, provincial Customs said in Hainan's capital Haikou on Saturday.
Duty-free shops in Hainan sold over 60 million duty-free items to more than 6.2 million customers during the period, up 211 percent and 102 percent year-on-year, respectively.
Since July 1, 2020, Hainan has raised its annual tax-free shopping quota from 30,000 yuan per person to 100,000 yuan. The previous tax-free limit of 8,000 yuan for a single product has been lifted, and the duty-free purchase limit for cosmetics was raised from 12 items to 30.
In addition, the categories of duty-free goods were expanded to 45 from 38 with the addition of electronic products such as mobile phones and laptops.
As part of the key moves of constructing Hainan Free Trade Port, the new policy in duty-free shopping attracted more consumers and triggered more spending. The dividends of the duty-free policy were further bolstered in the past year with the opening of five more duty-free shops.
Qin Lin, a tourist from the Guangxi Zhuang autonomous region, was buying cosmetics at a duty-free shop in downtown Haikou. It was her first visit to Hainan, and duty-free shopping was an important part of her itinerary.
"With the duty-free shopping quota raised significantly, we can buy more kinds of stuff," Qin said, adding that with overseas travel hindered by the COVID-19 pandemic, Hainan offers consumers a convenient alternative for duty-free shopping.
Covering an area of 120,000 square meters, the Sanya International Duty Free City in Hainan's Haitang Bay is the world's largest single duty-free shop. With settlement of more than 350 international luxury brands, the place has become a top attraction for tourists from home and abroad.
Gao Xujiang, deputy general manager of the China Duty Free Group, which operates the shop in Sanya, said despite the pandemic last year, the shop has become the top single commercial complex in duty-free sales in both China and the world, making CDF the largest duty-free retailer in the world.
Apart from the one in Sanya, another world-class tourism and shopping complex－Haikou International Duty Free City－is being built by the CDF and is expected to open next June.
As fine-tuned favorable policies continue to draw consumers, the island's offshore duty-free sales are seen exceeding 60 billion yuan in 2021, quadrupling from 2019, Shen Xiaoming, Party secretary of Hainan, said at a news release in April.
A report jointly released by KPMG China and the Moodie Davitt Report in May said the enhanced shopping policy in July 2020 gave tremendous impetus to brands as other duty-free markets fell into a deep pandemic-driven slump.
The report predicted Hainan Free Tade Port will likely become the world's biggest duty-free market in the near term if it continues on its current growth curve.
China released a master plan last June to build the island into a globally influential and high-level free trade port by the middle of the century.
The plan also took aim at Hainan building itself into an international tourism and consumption destination. Duty-free shopping has already become one of the core competitive features of Hainan's tourism consumption.
The new policy significantly boosted duty-free consumption in Hainan, and won back a great deal of overseas business. This will help promote the construction of Hainan as a major attraction in international tourism, said Liu Feng, director of the Research Center for Free Trade Port with Chinese Characteristics at Hainan Normal University.
BEIJING - China's Hainan free trade port (FTP) will further simplify its approval procedures and broaden market access through a recently enacted law on the construction of the FTP, an official said Monday.
The FTP will streamline administrative processes, improve services and provide more institutional convenience for market entities, Feng Fei, governor of Hainan province, told a press conference.
On June 10, China passed a law, making institutional arrangements for the construction of the FTP at the national legislative level.The law also enables market entities, especially foreign-invested companies, to enjoy more opportunities as it features a shortened negative list, which allows more sectors to be opened to foreign investors.
On pooling talent from around the world to Hainan, the law stipulates visa and work permit facilitation for international talent, Feng said.
Last June, China released a master plan to build the southernmost province into a globally influential and high-level free trade port by the middle of the century.
A tourist shops at a duty-free store in Hainan province. [Photo by Meng Zhongde/For China Daily ]
HAIKOU, August 28. /TASS/. The Hainan province published a list of restrictions on cross-border trade in services and became China's first region to switch to a new, more open system of interaction with foreign companies in the relevant field instead of the previous mechanism of "exceptions from what is prohibited," announced the regional administration.
According to statement, the list of state-approved restrictions approved covers 11 areas of international economic cooperation and includes 70 control measures. In all cases of trade in services not specified in this document, foreign companies will carry out commercial activities on Hainan according to the same rules as the Chinese companies. Thus, the province has significantly increased the transparency of the format of business cooperation with other countries, increasing the level of investor confidence.
This is an important step towards enhancing the high-level openness of the Chinese [international trade] system, and is essential for the intensive development of Hainan's free trade port," the Chinese Ministry of Commerce commented on the innovation.
According to the local authorities, these measures "provide for a fairly effective control over regional and systemic risks." It is assumed that the modified system will significantly increase Hainan's competitiveness on the international market.
On April 13, 2018, Chinese President Xi Jinping announced the creation of a pilot free trade zone and port on Hainan. The program aims to involve the island in globalization and international distribution of labor, to lay a solid innovation base. The provincial administration creates attractive conditions for investors, forms a top-notch research infrastructure. According to the government plan, by 2050, this region will become a unique cluster with an advanced economy, with the campuses of leading universities, advanced laboratories and the headquarters of world corporations.
HAIKOU, August 28. /TASS/. The Hainan authorities have begun creating pilot international offshore innovation and entrepreneurship zones province-wide, reported www.hinews.cn.
This offshore business model allows to register both Chinese and foreign companies. Highly qualified foreign specialists can also continue to work in the field of innovation, while staying abroad, but at the same time contribute to transformations in the pilot zone, the resource writes.
The said project is being implemented in order to promote the openness of the province to the outside world, as well as boost development of science and technology. After the country's central government drafted proposals in 2018, the Hainan province is developing as an international offshore innovation and entrepreneurship pilot zone that seeks to draw more skilled foreign specialists and high-tech enterprises and organizations to the region.
The provincial authorities plan to establish from eight to ten offshore innovation and entrepreneurship zones in Hainan's free trade port in order to attract top-notch innovation resources from abroad, as well as to promote international high-tech exchange. Later, this program will be extended to 11 key industrial parks on Hainan.
