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Hainan's free port boosts attraction of market players and resources in 2021

Hainan has attracted more and more attention from overseas companies over the past year

HAIKOU,September 15. /TASS/. China's Hainan accelerated the process of drawing key market players and mobilizing the resources necessary for the dynamic development of the regional free trade port in 2021, the journalists at People's Daily wrote about that growing trend.

According to the newspaper, since June 2020, when the general program was published, which determines the key directions in the province's development, and until last July, about 214,700 companies were registered on Hainan. The dynamics of the increase in the number of new market entities amounted to about 62% year-on-year. 

According to the authors of the article, amid a powerful inflow of financial capital and other resources in the first six months of 2021, the growth rates of the gross regional product also increased sharply, which amounted to 17.5%. As a result, the southernmost province of China for two years in a row ranks second in this indicator among 31 administrative-territorial units of mainland China.

Moreover, Hainan has attracted more and more attention from overseas companies over the past year. Thus, in January-June, the island accumulated seven times more foreign investment than in the same period in 2020. The dynamics turned out to be the highest among all other regions of China. 

The People's Daily observers note that the successful implementation of Hainan's new economic development strategy boosted trade in goods and services, which increased by 46% and 81% in six months, respectively. At the same time, the authorities optimized risk control mechanisms via 15 responsible working groups and the creation of a platform for round-the-clock control over the movement of passenger, cargo and financial capital flows.

On June 10, the Standing Committee of the National People's Congress (parliament) approved a bill that is expected to play a crucial part in the development of Hainan's free trade port. In June 2020, the island's administration published a general development program, which provides for the gradual removal of restrictions and a reduction in the tax burden for companies involved in the province's economy. According to the new strategy, by 2025, an effective mechanism for boosting sustainable and long-term growth will be set up on Hainan, providing for this region's active participation in international supply chains.