HAIKOU, June 2. /TASS/. The administrative center of Hainan, Haikou, with the approaching anniversary of the announcement of the general program for the development of a regional free trade port, summed up the preliminary results of socio-economic transformations over the past year and specified key development priorities for the near future, reported the municipal press service.
As highlighted in the material dedicated to assessing the efforts of the government, business and other public circles to create a special economic development zone on the island, over the past 12 months Haikou has made significant progress in creating a system of benefits and preferences for individuals and companies involved in important projects. Many countries are being represented on the Chinese market for the first time.
According to local media estimates, since the beginning of June 2020, 9-10 major events have taken place on Hainan every month, related to the implementation of government policy objectives to boost the province's openness and strengthen its position in international markets. During this time, it is noted that Haikou continued to play an extremely important role in the transformation and implementation of pilot measures.
Growing interest in business on Hainan
According to official statistics, in 2020 alone, more than 120,000 new market entities were set up in Haikou, which is almost 27% higher than in the previous 12 months. The dynamics for January - March 2021 turned out to be even more impressive: about 31,500 enterprises were registered in the city, and the number of new companies increased by 177% year-on-year.
According to the estimates of the provincial statistical office, the administrative center of the island has become the absolute leader in the placement of promising projects, hosting about half of the Chinese and foreign commercial organizations, which in the first quarter of 2021 began to carry out business activities on the territory of Hainan's free trade port.
Revitalizing the private jet sector
The new measures by the Haikou authorities first of all revived the sphere of logistics and transport communications. According to the representatives of the management of the shipping companies, which have located their offices in the administrative center of Hainan, the year 2020 became for them "the beginning of a period of new opportunities that opened up broad prospects for development."
“Last October, we signed an agreement with the Jiangdong New District (one of Hainan's 11 Key innovation zones, located in eastern Haikou near Meilan International Airport). Through joint efforts, we have been able to create a cutting-edge cluster for [private] aircraft rentals that meet the most advanced international standards," said the chairman of the board of directors of DeerJet Wu Chongyang.
His commercial organization has secured a solid customer base through business aviation leasing. According to the head of this private air carrier, the new policy of the Hainan authorities "made it possible to fill previously unclaimed niches", which have become an important factor in the development of the region's economy. In particular, a modern base for the repair and maintenance of service airliners was set up in Haikou.
"We will use all our competitive advantages and the most demanded resources to establish an effective industry chain on Hainan," said Wu Chongyang.
Diversification of the sources of growth
Zheng Gongyu, director of state projects of China Railway Construction Corporation (CRCC), said that the dynamic development of the transport communications sector in Haikou in the foreseeable future will be closely linked to green projects, AI (artificial intelligence) technologies and advanced innovations. It is assumed that they will contribute to active progress in many related industries and will have a beneficial effect not only on improving the quality of services, but will also lead to a boost in public safety.
According to Huang Yin, partner of the British consulting company Ernst & Young in the South China region, the administrative center of Hainan has a "huge potential for growth, which can be used by foreign investors." He stressed that as the free port develops, new opportunities will constantly arise for the profitable and efficient allocation of resources.
Huang Yin believes that Haikou will play a key role in the process of shaping supply chains and coordinating cooperation at the level of industrial zones and industry clusters. According to local experts, the industry is only one of the main factors due to which the city will continue to show steady growth. Tourism, modern services and innovation are playing an increasingly important role, analysts say.
A paradise for investors
One of the main objectives of Hainan's free trade port and its general program is to involve as many investors as possible in the development of the province. The Chinese Ministry of Commerce recently announced that it will continuously support the local authorities in creating a major economic cluster by locating a large number of multinational headquarters on the island.
Among the important measures that the Haikou administration has implemented over the past year is the expansion of the package of benefits for entrepreneurs and large specialists in strategically important industries. Recently, the city authorities have created a number of new favorable opportunities, guaranteeing promising companies and professionals a high level of income, as well as high-quality and affordable housing, medical and other services.
Earlier, the official representative of the Chinese Ministry of Commerce Gao Feng stressed that the government "will explore opportunities to improve the business climate and optimize strategic measures in the field of control over Hainan's foreign trade." According to him, the department continues to study issues related to the reduction of the list of areas of international economic cooperation in the field of modern services, to which foreign investors do not yet have access.
On June 1, 2020, the Hainan administration published a general development program, which provides for the gradual removal of restrictions and a decrease in the tax burden for companies involved in the economic activities of the regional free trade port. According to the new strategy, by 2025, an effective mechanism will be formed on the island to stimulate sustainable and long-term growth. One of the main tasks is to create an important international financial and economic center on the territory of the southernmost province of China.