Hainan to reap opening-up dividends

Cargo is being unloaded from a ship docked at a port in Haikou, capital of Hainan province, on Aug 25. [Photo by Yuan Chen/ For China Daily]

New master plan for the free trade port attracting firms around world, shaping island province into global investment hub

Foreign investors are flooding into the Hainan Free Trade Port as implementation of a master plan with attractive policy incentives have been unfolding step by step, generating huge opportunities and a wide range of benefits for high-end individuals and corporations at home and abroad.

China released a master plan for the development of Hainan Free Trade Port on June 1. It provided a long list of opening-up policies aiming to build Hainan Island, which is about 49 times the size of Singapore, into a globally influential free trade port by the middle of the century.

The master plan, together with a number of implementation plans issued in the past two months by ministries under the State Council and the Hainan provincial government, provide incentive policies and attractive options such as a low income tax rate for individuals and corporations.

The rate is set at a maximum of 15 percent compared to 17 percent in Hong Kong. The new moves will encourage facilitation of capital flows, expansion of duty-free coverage for goods purchased on the island, and the development of tourism, modern services and high tech industries.

Industry experts said the Hainan free trade port and reform plan is a new example of market-oriented reform policies implemented throughout China in recent years.

Data from the Hainan provincial department of commerce showed that from January to June, a total of 203 foreign enterprises were set up in Hainan, up 24.54 percent year-on-year, with 50 of them established in June.

The investors came from 30 countries and regions including leading multinational companies such as the Rio Tinto Group from the United Kingdom, energy giant EDF from France and the Charoen Pokphand Group from Thailand.