Page 172 - 2025 Special Report

Hainan

The economy Recent policies and reforms

at the southernmost tip of Master Plan for the Construction of the
Located China, Hainan overlooks Hainan Free Trade Port
Guangdong across the Qiongzhou Strait to the
north, Vietnam across the Beibu Bay to the west. On 1 June 2020, the State Council issued the
Its neighbors in the South China Sea include the Master Plan for the Construction of the Hainan
Philippines, Brunei and Malaysia. It became a Free Trade Port in order to benchmark against
province and SEZ in 1988, abbreviated as Qiong. high-level international economic and trade
2
The island covers a land area of 35,400km and rules, liberate thoughts, make bold innovations,
2
has a maritime area of about 2,000,000km , focus on the liberalization and facilitation of
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with total population of 10.4 million . Hainan trade and investment, establish a policy and
is at the forefront of China’s opening up and institutional system suitable for a high-level
is accelerating preparations for independent free trade port, create a special area of customs
customs operation in 2025. supervision with international competitiveness
and influence and build the Hainan Free Trade
In 2023, the GDP of Hainan reached RMB755.1 Port into a “shining flag” and an important open
billion, up 9.2% from a year earlier . Total export portal leading to China opening up to the outside
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and import grew 15.3% YoY, reaching at RMB231.2 world. This plan includes:
billion. Meanwhile, the offshore duty-free shopping
market in Hainan has been thriving, with sales of Development goals:
offshore duty-free products exceeded RMB43.7
billion, up 25.4% YoY. Despite various challenges, in • By 2025, a free trade port policy and
H1 2024, the economy of Hainan continued to see institutional system will have been established,
steady expansion, with GDP increasing by 3.1% YoY. focusing on the liberalization and facilitation
of trade and investment. The overall business
environment will be brought to the first-class
Market highlights level in China, the number of market entities

will be substantially increased, industrial
Tourism industry is the one of the top priorities competitiveness will be significantly improved,
of Hainan’s economy development. More than 90 powerful and effective risk prevention and
million domestic and overseas tourists visited Hainan control mechanisms will be in place, laws and
in 2023, up 49.9% YoY. During the same period, regulations will be gradually perfected to adapt
Hainan experienced rapid development in cruise to the construction of a free trade port and the
tourism. Cruises to the Xisha Islands in the South quality and efficiency of economic development
China Sea saw 400 trips, up 277.8% YoY and received will be markedly enhanced.
149,400 domestic tourists, up 405.33% YoY.
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80 Government site of Hainan, http://en.hainan.gov. • By 2035, the free trade port system and
cn/englishgov/AboutHainan/abuothainan.shtml operation mode will be more mature. Trade
81 Government site of Hainan, https://www.hainan. and investment rules characterized by freedom,
gov.cn/hainan/tjgb/202402/240285520f9148fca830eb4 fairness, rule of law and high-level process
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82 Government site of Hainan, https://www.hainan. supervision will be basically established to realize
gov.cn/hainan/tjgb/202402/240285520f9148fca830eb4 free and convenient trade, free and convenient
26f8d046e.shtml
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