Hainan Free Trade Zone is really a hot destination for investment. Hainan’s development as a free trade zone could prove as a milestone in China’s next phase of economic reform and opening-up, and trigger growth in the area. The following are the policies released to encourage overseas businesses to invest in Hainan Free Trade Zone.
Cancellations and Relaxations
1. Cancels restrictions on the proportion of foreign share capital invested in the breeding of new varieties of vegetables and seed production.
2. Delegates the approval rights for foreign capital to access value-added telecommunications services to Hainan province; cancels restrictions on the ratio of foreign share capital invested in domestic multiparty telecommunications services, internet access services for internet users, storage and forwarding services.
3. Removes restrictions on the ratio of foreign share capital in the design, manufacturing and maintenance of ships (including subsections) and trunk lines, branch lines and general aircraft.
4. Cancels the requirement that oil and gas exploration and development must be carried out by means of product-sharing contracts signed by oil and gas companies, with foreign cooperative franchises approved by the Chinese government.
5. Cancels restrictions on foreign share capital in international maritime transport companies and international shipping agency companies.
6. Cancels foreign investment restrictions in new energy vehicles.
7. Substantially relaxes foreign capital market access. In particular, the maximum ratio of foreign share capital in life insurance companies is increased to 51%.
New Permissions
1. Wholly-owned foreign construction companies established in the FTZ are allowed to undertake construction projects within the zone, and not be subject to restrictions on the investment ratio of both parties in the project.
2. Foreign professionals, who have obtained qualifications to be first-class registered architects or first-class registered structural engineers in China, are allowed as partners to set up architectural engineering design firms, according to their corresponding qualifications.
3. Professionals in the financial, construction, planning and patent agency fields - with Hong Kong and Macao practicing qualifications - are allowed to provide professional services for companies in the FTZ after filing.
4. Allows Hainan to launch pilot projects to temporarily open waters to international yachts.
Support Policies
1. Supports piloting of customs tax guarantee insurance. Simplifies the export of licensing procedures for wild animals and plants.
2. Supports the establishment of commodity futures bonded delivery warehouses in special customs supervision areas and bonded supervision areas.
3. Supports the development of cross-border e-commerce providers, global maintenance and other formats, construction of overseas warehouses for key countries and key markets.
4. Supports development of offshore spot trading and bonded deliveries of bulk commodities such as rubber.
5. Supports establishment by multinational corporations and trading companies of international or regional trade networks and creates regional offshore trade centers.
6. Promotes financial opening and innovation of the FTZ. Further expands cross-border use of the renminbi, explores the convertibility of capital accounts, deepen reforms of foreign exchange management.
7. Supports development of stem cell clinical frontier medical technology research projects.
Tannet provides a full range of business services in Hainan. Up to know, we have established three branches locally. Our team are equipped with competent English-speaking professionals and overseas returnees. We are glad to help with your business startup in Hainan.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated at:
(1) 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China;
(2) Unit702-703, 7/F, Fourseas Bldg, 208-212, Nathan Rd, Jordan, Hong Kong;
(3) Unit 610, 6/F, Huaxia Bank Tower, No. 61 Guoxing Avenue, Meilan Dist., Haikou, Hainan, China.
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