Hainan Island is one of the largest islands in China and is in the focus of international investors. It is the size of Belgium, and has a temperate climate, beautiful beaches with fine white sand, palm trees and crystal clear water.
Known as “the Hawaii of China”, Hainan has everything to receive tourism and become the country’s key global trade point, so much so that in 2019 it received 83 million domestic and foreign visitors. That is why the Xi Jinping government is investing in this free trade zone that could take on Singapore internationally, or replace Hong Kong as the nerve center for Chinese investment and finance. This island will be a key point of global trade that would also serve for the expected opening of its system.
Hainan, the ‘Chinese Hawaii’ boasts a temperate climate, beautiful beaches with fine white sand, palm trees and crystal clear water.
Trade-free port from 2025
China has announced a series of facilities in all areas (taxation, foreign investment and property, commercial operations) with which to promote the transit of capital, data and people in the region. The project will be a reality from 2025, but before that measures are being carried out, such as the exemption of import tariffs or the improvement of fiscal conditions for companies registered and operating on the island.
At the moment, the number of market entities registered in Hainan has grown from less than 310,000 in 2013 to more than 1.98 million in 2022. Also, foreign investment in Hainan grew at an average annual rate of 80% and the number of foreign companies introduced on the island has grown at an average annual rate of nearly 120%.
Luxury market in Hainan
Hainan also plays a crucial role in China’s luxury goods market: In 2021, sales of personal luxury goods in Hainan accounted for 13% of the total revenue of 470 billion yuan ($69.4 billion) worldwide country. And 21% of global luxury sales revenue came from China.
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