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Hainan

Business Environment

en.hainan.gov.cn | Updated: 2017-12-18

Overview

Hainan province was established in April 1988. Its jurisdiction extends to Hainan Island, Xisha Islands, Zhongsha Islands and Nansha Islands, as well as more than 240 islets and the surrounding sea territories. Hainan governs two prefecture-level cities, six county-level cities, 10 counties, and the Administration Office for Xisha Islands, Zhongsha Islands and Nansha Islands. With Haikou as the provincial capital, Hainan has a land area of 3.4 million square kilometers and a sea area of two million sq km.  

Situated at the southernmost tip of China, Hainan overlooks Guangdong across the Qiongzhou Strait to the north, Vietnam across the Beibu Bay to the west and Taiwan across the South China Sea to the east. Its neighbors in the South China Sea include the Philippines, Brunei and Malaysia. 

Among over 4,600 kinds of plants, 800-odd species have high economic value and 600 are indigenous to Hainan. 40 percent of the herbal plant species in China are found in this island. There are 37 kinds of exploitable mineral resources, including iron, glass, quartz sand, titanium and natural gas. Moreover, Hainan boasts nearly 30 million square kilometers of high-yield fisheries. Along its 1,530-kilometer coastline, there are 25.7 thousand hectares of coastal tidal flats for aquaculture. Among its aquatic products, redfish, crabs, shrimps, blood clams and pearls are well-known. 

Hainan has ideal natural conditions for developing tourism. Eight percent of its land is still undeveloped. Due to its sunshine, heat, water and other favorable conditions, crops grow much higher in Hainan than in other parts of China. The farmland can be cultivated all the year round and slope farming can yield two or three harvests a year. In addition to food crops and vegetables, dozens of cash crops are also grown, such as rubber, sugar cane, coconut, pineapples, bananas, peppers, mangos, litchi, longan, carambola, coffee, cocoa, and sisal. 

By following a pragmatic and innovative approach, Hainan has utilized its advantages in developing its three pillar industries, namely, tropical high-efficiency agriculture, new and high-tech industry and tropical island tourism.

Yangpu investment environment

1. Development advantage of Yangpu 

Location advantage: Neighboring ASEAN trade area, located in the center of the main sea route of Southeast Asia. 

Port advantage: Yangpu is the largest peninsula in Hainan. It has an area of over 350 square kilometers and a coastline of over 150 km, 70 km of which is deepwater, able to accommodate more than eighty 0.3-million-tonnage piers. The average water depth in Yangpu Bay is 11m and the largest depth is 24.6m. Ships of 30,000-tons can sail in and out of the bay without being affected by tide. Yangpu has the best deepwater port on Hainan Island and possesses the natural conditions for a large seaside industry. 

Resource advantage: Abundant offshore oil and gas resources and quartz sand deposits in surrounding areas. 

Land advantage: Broad hinterland, sparsely distributed population, and poor soil with rock foundation that is suitable to industry and lowers construction cost. All land in the zone has been acquisitioned and a complete set of infrastructure facilities has been built.

Policy advantage: The only state-level economic development zone in China that also enjoys the policies granted to bonded zones. 

2. Infrastructure and service facilities of Yangpu 

The zone has invested more than 6 billion yuan ($910 million) in large-scale construction of infrastructure, including water supply, power supply, natural gas, drainage, discharge, road communication and land leveling.

The zone has finished construction of a main road network, drainage and sewage pipelines, a large sewage treatment plant, and a water supply project. It has well-equipped communication facilities including trunk lines, program-controlled telephone sets, “Little Smart” cordless phones, mobile telecommunications and Internet. 

Yangpu Harbor is a good natural harbor with one 3,000-tonnage dedicated pier, two 20,000-ton and three 35,000-tonnage general piers. The development zone is connected with Hainan West Expressway via a finely built exit road. The Guangdong-Hainan Railway links Yangpu with the railway network of the Mainland and makes the goods transportable between Yangpu and all parts of the country by railway. 

The zone also has a complete set of service facilities such as a bank, school, hospital, cinema, stadium, hotel and restaurant. 

Sanya Investment Environment 

The city invested a total volume of 90.2 billion yuan into its investment environment from 1989 to 1997. Nowadays, a new pattern of water, land, and air communication has begun to take shape. A highway transport network radiates in all directions. There are three main lines (the east, the west and middle in Haiyu) leading to Haikou and other places in the province. Both the eastern line from Haikou to Sanya, with a total length of 272 kilometers, and the western line, running to nine places from Sanya and circulating over the island, has been opened to the public.

1. Policies

Since China's reform and opening-up, Sanya's policy system has become more and more complete. Especially in recent years, a succession of new policies has been introduced. The Sanya government encourages rational benefits distribution through appropriate techniques, management and data application. These policies are helpful in establishing a sound visible market for construction, commercial land development and property rights transactions,  as well as for carrying out public bidding system and eliminating varieties of unfair competition. It is consequently a favorable place for talents and enterprises to develop. 

2. Living environment

Sanya, a new seaside garden city in south China, has won several nationwide awards including National Garden City, National Good Hygiene City, National Model for Environment Protection and Best Tourist City of China for its fresh air, clear sky, beautiful city appearance, standard urban management, convenient transportation and developing economy. In a word, Sanya is one of the best residential cities in China. 

3. Facilities

Since the 1980s, the Sanya government has regarded facilities construction as the base of future development. And Sanya has now formed an advantageous facilities pattern including advanced ports, a modernized airport, and large power and water supply houses, all of which will greatly benefit the city’s economic development.

Railways The Sanya-Shilu Railway passes through five cities and counties in the southern part of Hainan province.

Airlines The Phoenix International Airport in Sanya was brought into operation on July 4, 1994.  At present there are 12 air routes from Sanya to other cities of the country and seven to big cities of other countries.

Ports The Sanya Port is called on all year-round by passenger and cargo liners from more than 30 countries and regions. The Sanya-Xiangan line was the first line from China to Vietnam. The Sanya-Hong Kong Ocean liner has been re-established. The Honghan and Nanshan ports with a capacity of ten thousand tons of oil and gas have both been completed. 

Communications Telecommunication services are flourishing in Sanya. Modern communication technology and facilities for all types of telephones, computers and fiber-optic image communication are available to users, who can make calls directly to 900 big, medium and small cities in the country and to more than 240 foreign countries and regions.