HAIKOU, February 11. /TASS/. A unique legal system and large-scale legislative work are creating special competitive advantages for attracting foreign investment in the southern Chinese province of Hainan, the Hainan Ribao newspaper reported.

According to local authorities, 3,265 new enterprises engaged in foreign trade were registered in Hainan after the province transitioned to a special customs regime on December 18, 2025. More than 290,000 new economic entities were established over the previous year, with investors coming from 180 countries and regions worldwide.

The newspaper pointed out that the advanced formation of a comprehensive legislative framework within the construction of a free trade port is the key factor shaping investor confidence. This system is based on the Law of the People's Republic of China on the Hainan Free Trade Port, which took effect on June 10, 2021, and established the legal framework for trade, investment, taxation, and ecology.

Based on this, the province adopted 150 local regulations, more than half of which aim to improve the investment climate. This regulatory framework is designed to minimize uncertainty for businesses and establish stable, transparent rules.

Among the most significant legislative initiatives, the newspaper cited the adoption of the country's first specialized regulation on fair competition, which establishes equal conditions for all market participants, as well as the introduction of a regulation on administrative inspections of enterprises. The latter strictly oversees control measures and has already reduced the number of inspections by more than 10,000 per year, implementing the principle of “do not disturb without reason.” The newspaper also noted that launching a simplified investment project approval regime aimed to reduce the administrative burden.

Hainan's distinctive feature is its use of expanded legislative powers to target new areas such as big data, biomedicine, and mariculture, as well as to protect the interests of foreign and private investors. Experts believe that Hainan's continued use of its special legal status will allow it to develop a unique legal ecosystem that promotes long-term investment and innovative development.