It's not for nothing that the foreign direct investment (FDI) inflow to Hainan had doubled twice in merely three years, ultimately reaching $3.03 billion in 2020. The achievement, all the more astonishing given that global FDI fell by 42 percent last year because of the COVID pandemic, is a clear demonstration of Hainan's strength in business attraction.
The island province is taking various measures to build up a convenient, law-based and world-class business environment so as to speed up the development of its Free Trade Port.
Hainan International Investment "Single Window", launched in August 2020, is a holistic public service platform that streamlines 20 systems from 13 government departments and offers through its "single window" a wide range of administrative support for the island's foreign enterprises, from business consultation and bank account management to company and construction registration. It can handle a total of 243 investment-related procedures.
Thanks to the transparent and efficient system, foreign entrepreneurs can now set up companies in Hainan without any difficulties. As of March 30, 2021, a total of 2,599 foreign-funded enterprises had handled 5,663 investment-related businesses online through the "single window" system.
The province launched a Global Investment Hotline in April 2020.
Global investors interested in new opportunities in the Hainan FTP can dial 4008-413-413 for more information. The hotline provides service in both Chinese and English.
Do's & Don'ts
As part of its efforts to build up a rule-based business environment, Hainan unveiled an action plan last year,setting out 31 detailed measures to ensure fairness and probity in the market. They cover such areas as global trade, property registration, fundraising and IPR protection. A general principle of "Six Do's & Six Don'ts" was adapted later.
Openness, fairness, non-intrusiveness, helpfulness, pro-activeness, as well as respect for rules are encouraged, while power abuse, arbitrary fees, contract breaches, bribe-taking and other unlawful behaviors are strictly forbidden.
China is taking orderly measures to cut tariffs and remove non-tariff barriers, such as permits and quotas, to enhance trade liberalization at the Hainan FTP.
By 2035, the island will enjoy free trade and investment facilities, free cross-border capital flows, free and convenient transport and access for people, and safe and orderly flow of data, according to the government plan.
Hainan Free Trade Port Law
On June 10, 2021, China passed a law on the Hainan Free Trade Port, making institutional arrangements for the construction of the Hainan FTP at the national legislative level.
A range of measures are being taken to better implement the Hainan Free Trade Port Law and foster a sounder business environment in an effort to develop a globally influential free trade port in Hainan province. Steps will be taken in investment liberalization and facilitation when putting the law into force, and a simpler investment approval mechanism will be fully rolled out.
The law will help to bolster the confidence of businesses, and foreign investors in particular, to have longer-term plans for their investments in Hainan.