Page 166 - AmCham South China 2026 Special Report on the State of Business in South China

? Optimized ¡°tariff exemption for value-added intellectual property and better align for cross-
processing¡± policy: One of the most transformative border R&D flows.
measures, this policy sees significantly relaxed
restrictions and now allows cumulative value-added Proposal of the 15th Five-Year Plan
calculation across upstream and downstream (2026-2030) for Hainan Economic and Social
enterprises, making it easier for businesses to meet Development 135
the ¡°over 30% value-added¡± threshold for tariff
exemption when selling finished products into the The 15th Five-Year period is framed as a bridge
mainland market. This mechanism offers a strategic between initial set-up and a more mature system
opportunity to restructure supply chains, reduce by 2035. The plan aims to complete and refine
costs and optimize production. Industries reliant Hainan¡¯s FTP policy architecture while maintaining
on imports can offshore high-value segments while a firm security baseline in areas ranging from
maintaining connectivity with China¡¯s domestic finance and cross-border capital flows to data,
market. Companies can ship primary products or public health and the environment. By 2030,
components to Hainan for substantial processing; Hainan aims to have:
if the value-added meets the standard, the final
products can enter the mainland market tariff-free. ? A more complete FTP with higher levels of
trade and investment liberalization
? ¡°Dual 15%¡± tax incentives as a long-
term advantage: Hainan now offers a range of ? A Hainan-style modern industrial system
preferential measures for businesses and talent. with stronger innovation capacity
These include a 15% corporate income tax rate
for companies in encouraged industries ? below ? More balanced regional and urban-rural
China¡¯s standard rate of 25% ? as well as a lowered development
individual income tax rate for high-end and in-
demand talent. ? Leading ecological quality and a green,
low-carbon growth model and higher standards of
? Enhanced trade and investment public services, social security and safety
liberalization and facilitation: Measures include
implementing a negative list for cross-border trade Major targets and tasks:
in services, streamlined customs supervision,
digitalized clearance and pilot programs for ? A critical stage for Chinese-style
facilitating cross-border flows of data, capital modernization in Hainan and high-standard
and talent. A visa-free policy for nationals of 59 FTP construction: After customs closure, Hainan
countries is in effect, with further eased entry-exit faces more complex domestic and international
restrictions for business personnel. conditions and will need to further establish and
optimize the policy systems suitable for high-level
From a broader perspective, Hainan is looking to FTP, improve the level of trade and investment
establish itself as a node within global value chains. liberalization and facilitation and accelerate the
Instead of handling massive volumes of goods like development of the special areas for customs
other major ports, Hainan will leverage the policy supervision with international competitiveness
incentives to accelerate development of emerging and influence.
industrial chains and innovation clusters, prioritizing
future-focused industries such as the planting ? Deepening comprehensive reforms
industry, deep-sea technology and aerospace. and opening up with new breakthroughs:
Proactively integrating with frameworks like the Further improving the socialist market economic
RCEP, CPTPP (Comprehensive and Progressive system and the high-level opening up system
Agreement for Trans-Pacific Partnership) and DEPA and mechanism. Enhancing the strategic role of
(Digital Economy Partnership Agreement), Hainan 135 Government site of Hainan, https://www.hainan.
is becoming an attractive location for companies gov.cn/hainan/zymygxwzxd/202512/80ba98c6a83d47d
looking to optimize their supply chains, protect d93f893f45eae6667.shtml

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