HAIKOU /China/, August 18.  /TASS/. Key development zones of the city of Haikou (the administrative center of South China's Hainan Province) have enhanced synergies through innovation in the course of their formation, the Haikou Daily reported.

According to the paper, Haikou's economic development has also benefited from the successful combination of high-productivity activities of modern technological enterprises with the advantages of free trade mechanisms. The authors figuratively compare the city's ever-expanding industrial network to the branches and leaves of a fast-growing, fruit-bearing tree.

The reviewers found that Haikou's key development zones have "clear goals, huge potential and strong momentum" for long-term, sustainable economic growth. Through the coordinated efforts of government, academia and business, a "new development picture" is emerging. The publication mentions the Jiangdong New Area Development Zone (Jiangdong), located near Meilan International Airport. In addition to an aircraft maintenance and repair complex, the authorities are developing an ecological business district there, including the construction of Sinopec's free trade complex.

In Haikou, a large-scale industrial cluster is being built to promote offshore trade in raw materials, with annual revenues already exceeding 250 billion yuan ($35 billion at current exchange rates). The Chinese food company Guangqi imports beef from abroad to Hainan. As this product is further processed, it is not subject to customs duties and value-added tax. As a result, it is possible to improve the price competitiveness of the final products and expand the production volume. Given these advantages, more and more leading beverage and dairy companies in China and other countries are setting up their subsidiaries in Haikou.

Another key area, called Fullsing, is gradually developing into an international science and production park. Thanks to divisions of large companies such as Huawei, projects in digitalization and telecommunications are being implemented there.

Enhancing the competitiveness of enterprises

The Haikou government continues to modernize its management mechanisms to create a suitable environment for business activities in key development zones. In particular, this includes a tiered service system that involves leading experts and managers to help enterprises solve pressing problems either in person or online.

According to the strategic development department of the Jiangdong government, the companies registered on the platform have become increasingly successful. For example, in the first quarter alone, the revenue of Shaanxi Heimao Coking, a local company listed on the Shanghai Stock Exchange, was nearly 1 billion yuan ($140 million). One of the key tasks is to increase this figure to more than 10 billion yuan ($1.4 billion) for new enterprises in this key zone.

Thanks to the innovation factor, Haikou's transportation potential is also being gradually strengthened. In particular, the logistics center of Kerry Logistics, a Hong Kong-based multinational company, was recently put into operation in the area of the comprehensive free trade zone. As mentioned above, the relevant regulatory authorities will strive for such enterprises to expand their operations with the government's efforts and the optimization of the business environment.

Hainan FTZ has 13 key development zones. In the first half of this year, the revenue of 4 of them (Jiangdong, Fullsing, State Hi-tech Development Zone and Comprehensive Free Trade Zone) located in Haikou increased by 22.3% to more than 425 billion yuan ($60 billion). The main objective of these innovation zones is to support the long-term sustainable growth of the regional economy and lay a solid foundation for a cluster of strategic industries focused on the production of advanced knowledge-intensive products and modern high value-added services.