Hainan Province and Island
Hainan, China’s most southern province, is becoming an increasingly attractive destination for investors.
Where is Hainan?
Hainan is strategically located at the crossroads of Asia and the Pacific, making it an ideal hub for trade and commerce. With its modern infrastructure and world-class transportation links, Hainan is well-positioned to become a major player in the global economy.
Hainan is a tropical island province located in southern China, in the South China Sea. It is the southernmost province of China and is separated from Guangdong province to the north by the Qiongzhou Strait.
Hainan is in the east of Vietnam, and north of Singapore. It is approximately 600 kilometers southwest of Hong Kong.
How big is Hainan?
With approximately 35,400 square kilometres, Hainan is significantly larger in land area than Belgium. As of 2021, the population of Hainan is estimated to be around 10 million people. The majority of the population is Han Chinese, but there are also significant ethnic minority groups, including the Li, Miao, and Hui. The population density of Hainan is relatively low compared to other provinces in China, with an average of around 270 people per square kilometre. However, the population of Hainan has been growing rapidly in recent years, driven in part by the province’s favourable business environment and high quality of life.
What is the Free Trade Port policy?
Hainan’s free trade port policy is considered to be a game-changer for businesses, companies, SMEs and investors looking to tap into the growing Chinese market. There are several reasons why this policy is so:
- Tax incentives: Businesses operating in Hainan’s free trade port (the whole province will be transformed into a free trade port.) enjoy a range of tax incentives, including exemptions from import and export duties, value-added tax, and corporate income tax. This can significantly reduce the cost of doing business in Hainan and make it more attractive for companies, SMEs, and investors.
- Open market: Hainan’s free trade port policy allows for the free flow of goods, services, and capital, creating a more open and competitive market. This can help businesses to access new markets and customers, and can also encourage innovation and entrepreneurship.
- Favorable business environment: Hainan’s free trade port policy is designed to create a favorable business environment, with streamlined regulations, simplified procedures, and a focus on innovation and development. This can help businesses to operate more efficiently and effectively, and can also attract new talent and investment to the region.
- Strategic location: Hainan’s free trade port is strategically located at the crossroads of Asia and the Pacific, making it an ideal hub for trade and commerce. With its modern infrastructure and world-class transportation links, Hainan is well-positioned to become a major player in the global economy.
Overall, Hainan’s free trade port policy is a powerful tool for businesses and investors looking to tap into the growing Chinese market and take advantage of the region’s favourable business environment, open market, and strategic location.