Hainan pilot free trade zone was expected to be completed by the year 2020. On Oct 16, 2018, China unveiled a detailed plan to establish the country's southern province Hainan as a free trade zone (FTZ), in its latest move to open up the economy. The development of the Hainan FTZ is said to be a key measure for making new ground in pursuing opening up on all fronts. The move shows China's resolution and confidence to open wider to the world.
Brief Introduction to Hainan Free Trade Zone
The new area－the Haikou Jiangdong New District of China (Hainan) Pilot Free Trade Zone－covers 298 square kilometers on the east coast of Haikou, the provincial capital. It will have two parts: a 106-sq-km ecological region boasting a key national wetland natural reserve, and 192 sq km that will serve both industrial and urban purposes.
Strategic Position of Hainan Free Trade Zone
1. A pilot zone for comprehensively deepening reform and opening up;
2. A display of the country's ecological civilization;
3. An international tourism and consumption center;
4. A zone offering services and support for the country's major strategies;
5. A key gateway to the Pacific and Indian Oceans.
Features of Hainan Free Trade Zone
A significant feature of Hainan FTZ is that the zone is an entire island, spanning 35,400 sq km. The other 11 FTZs are 120 sq km each.
The other 11 FTZs are built on regions with good economic bases, while there are both developed and less developed areas in Hainan island, so various experiences can be summed up from Hainan FTZ.
Target of Hainan Free Trade Zone
Build Hainan into a high-quality FTZ that promotes trade and investment facilitation, provides an excellent legal environment, thorough financial services, efficient regulation, a favorable ecological environment, and boosts the development of surrounding areas by 2020.
Preferential and Favorable Measures
1. Fewer restrictions
Foreign investors will have wider access in a number of key areas including tourism, education, and telecommunications. A negative list approach, which outlines economic areas restricted for foreign investment, will be adopted in the Hainan FTZ. Foreign investment caps in areas including the breeding of new vegetable varieties and their seed production as well as international maritime transport businesses will be lifted.
Hainan will have more autonomy in granting foreign investment access. International businesses providing value-added telecommunication services will no longer need to go through central authorities to enter the market. To promote international trade, data-based systems will be put into use to improve customs efficiency while multinationals and trade companies will be encouraged to treat Hainan as the center of their global or regional trade network.
2. Stronger service sectors
Domestic and foreign shipping companies will be encouraged to set up operational or regional centers in the FTZ, as part of the efforts to build the area into an international shipping hub. More cruise lines with Hainan as a stopover will be developed to foster the local tourism industry. Tourists from 59 countries can travel visa-free if they start or transit in countries and regions with direct flights to Hainan.
In the pilot zone, patients can get medicine and medical equipment accredited by EU, Japan, and US authorities before they have been officially accredited by the Chinese government. Tariffs for some medical equipment will be cut in the pilot zone.
Reasons to Invest in Hainan Pilot Free Trade Zone
1. The biggest pilot free trade zone in China;
2. The artery of transportation by sea;
3. Prioritizing full convertibility of renminbi & tax free policies;
4. Mainstay tourism industry & booming service industry.
In the early of this year, Tannet has prepared to build a professional team to serve local and outcome investors. Up to know, we have already established three branches there, and have provided services for quite a lot entrepreneurs and enterprises, including company formation, visa application, bank account opening, accounting and bookkeeping, etc.
Contact Us
If you have further inquiries, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Shenzhen hotline at 86-755-82143422 or Hong Kong hotline at 852-27826888, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in16/F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu, Shenzhen, China.
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