The development of the Hainan Free Trade Port is the most striking highlight of Hainan’s "13th Five-Year Plan (2016-2020)". Let’s take a look at the achievements the Hainan FTP has made as of the end of 2020.

New Island-departure duty-free policy yielded remarkable results

Hainan has raised its annual duty-free shopping quota from the previous 30,000 yuan to  the current 100,000 yuan (about 14,123 USD) per person, canceled the single-purchase item quantity limit, and added more categories of duty-free products. Six new duty-free shops have been established around the island.

From July 1^st, when the new policy was implemented, to December 31st, 2020, average daily sales exceeded 120 million yuan, an increase of more than double last year's figures. Actual sales in 2020 exceeded 32 billion yuan. 

Two 15% Income Tax polices were implemented quickly

The government has delivered letters to eligible individuals and businesses to explain the preferential  income tax reduction to 15%.

From June 1st to December 31st, 2020, Hainan brought in more than 110,000 talents, an increase of 1730% by the same measure. The past two years witnessed 208,000 talents of various types arriving in Hainan. 

　　

Zero-tariff policies for Raw & Auxiliary Materials and vehicles & yachts were passed and implemented

The Hainan Free Trade Port has introduced special management measures for foreign investment access, introduced Yangpu Bonded Port Area Customs Supervision Measures, and tested the import and export management system featuring “first-line” liberalization and “second-line” management. Total import and export volume increased by 1.3 times, while total import and export output value increased 1.96 times. 

　　

New policies on shipping and aviation have had clear effects

21 international freighters registered at China's Yangpu Port have been delivered, and single-ship carrying capacity increased from 60,000 to 300,000 tons. Hainan has opened the province's first inter-continental shipping line, and the Seventh Freedom of the Air for passenger and cargo transport has been trialed in Hainan.

New progress has been made in the safe and orderly flow of cross-border data

The Ministry of Industry and Information Technology of China approved the establishment of a Haikou regional International Communications Business Entrance and Exit Bureau, and agreed to build dedicated channels for Internet data in 9 key parks.　  

Actual use of foreign capital has doubled for 3 consecutive years

Actual use of foreign capital was about $3 billion USD last year, meaning that these numbers have now doubled for three consecutive years. The number of countries and regions setting up foreign-funded enterprises in Hainan has increased by more than 40 over the previous year.

The Window to Global Trade (WGT) complex in Haikou (Hainan Daily)

The business environment has been significantly improved

Hainan has set up a "single window" for administrative approval, international investment, international trade, and human resource services, reducing the time needed for approval by 70 to 80%. All customs approval items have been processed through the "one window" and online, and the overall customs clearance time for exports decreased by 40.5% compared with the same period in 2019. The time required for international ship registration application materials to be processed has been reduced by 60%, while time required for approval is down 86%.

According to calculations by a third-party evaluation agency in accordance with the World Bank’s evaluation index system, Hainan’s total score in 2020 is 77.9, ranking 32nd among the 190  ranked economies in the world.