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Hainan’s Sanya to step up economic openness and innovative development in 2024

The city plans to shift to an offshore customs control model, promote consumption and develop the duty-free trade sector, and form a science and education cluster to achieve these goals

HAIKOU /China/, January 29. /TASS/. The city of Sanya on the southern coast of Hainan Island will increase trade and economic openness this year, strengthen measures to promote ecological and innovative development, the Sanya Daily newspaper reported with reference to the local administration.

The publication cited a document released last week during the 3rd session of the 7th Hainan Provincial People's Congress (legislature). The key topics included the transition to an offshore customs control model, the promotion of consumption and development of the duty-free trade sector, and the establishment of a science and education cluster. All of these issues are noted to be of direct relevance to Sanya.

Foreign trade

The paper notes that the city has recently successfully implemented seven projects related to Hainan's transition to a new customs regime. The construction of eight anti-smuggling posts has also been completed. In addition to the development of bonded zones, the province is piloting mechanisms not yet tested in the PRC.

The year 2024 will be an important milestone for Sanya in its transition to an offshore format, the article wrote. Authorities will fast-track measures, which it will cover not just key, but also secondary customs points. Simultaneously, the city infrastructure is being upgraded to improve the efficiency of inspection control.

The city administration intends to increase the scale of the zero import duties policy and increase support for enterprises producing high value-added products. The government will continue to optimize preferential taxation for individuals and companies in demand in meeting the strategic objectives of free trade port development.

Sanya will also fast track the establishment of the Hainan Economic Cooperation Demonstration Zone with Hong Kong in the coming months. This special administrative region of China will gain greater access to the province's professional services market. The city is expected to attract even more companies with Hong Kong capital through its retail promotion strategy.

A network of duty-free outlets

According to the article, there are already 12 duty-free stores in Hainan. Their sales for 2023 exceeded 58 billion yuan (more than $8 billion at current exchange rates), up 19.3%. Sanya accounts for about half of this amount reaching 30 billion yuan (over $4.2 billion).

As the authors explain, several measures, including the introduction of government consumer vouchers, contributed to the rapid growth of this figure. The authorities have also taken considerable steps to crack down on smuggling.

Sanya is going to maximize its advantages to boost economic growth, the paper stated. The authorities will encourage the development of cross-border e-commerce, improve conditions for consumers, enhance the quality of services, diversify the range of goods, expand sales channels, and create a world-class international duty-free center.

In 2024, the city government has set a target for local duty-free stores to increase sales by more than 8% to 32.4 billion yuan (about $4.5 billion).

Development with a focus on innovation and ecology

Official statistics show that the investment intensity rate for Hainan's R&D programs in 2023 was 1.2%. Sanya's corresponding figure was more than twice as high, reaching 2.9%.

Yazhou Bay Science and Technology City, located on the shores of the South China Sea, is expected to ensure the successful implementation of the city's most promising research projects. It is playing an increasingly important role in realizing aerospace, breeding and deep-sea marine research.

In 2024, it is noted that Sanya will continue to adhere to the priorities of ecological development, improve the control of water and forest resources. The government is going to pay special attention to protecting wetlands, developing green transportation, and maintaining a balance between human economic activities and nature conservation.

Sanya is expected to play an increasingly important role in cutting-edge inventions and developments. Last October, the China Copyright Protection Center opened its branch office at Yazhou Bay Science City. The new entity deals with issues related to patents, licenses and trademarks.

Sanya is one of Hainan's key economic development centers, home to more than 1 million people. In 2023, its gross product reached 97.13 billion yuan (about $13.66 billion), up 12%. The provincial government plans to turn the city into a leading financial and economic center with advanced infrastructure, where leading Chinese and foreign companies will be headquartered. This major population center, also known worldwide as a first-class resort, is transforming year after year, attracting the attention of more and more investors.

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