More and more business people from China’s Taiwan are seen in Hainan Free Trade Port (FTP) in south China’s Hainan province as they have been attracted by favorable policies in the free trade port and come to the southern island province to seek opportunities and expand business.
Data showed that business people from Taiwan have registered 302 companies and actually invested more than $300 million in Hainan province since 2018; between 2019 and 2021, volume of trade in goods between Hainan and Taiwan grew by more than 50 percent a year; last year, trade between Hainan and Taiwan surged 81 percent year on year to 1.9 billion yuan (about $292 million).
“Hainan is endowed with abundant natural resources and advantageous geographical location; and the Hainan FTP enjoys full and high-standard opening-up as well as favorable policies that are not available elsewhere,” said Fu Zhiguan, vice president of the All China Federation of Taiwan Compatriots (ACFTC) and president of the Hainan province federation of Taiwan compatriots.
Featuring zero tariffs, low tax rates, and a simple taxation system, policies in the Hainan FTP significantly lower operating costs of companies and provide opportunities for Taiwan compatriots in many aspects, including expanding into global markets, achieving mutual complementarity with related industries, pursuing development of high technologies, as well as introduction of high-end management talents, according to Fu.
“Our international medical center in the Boao Lecheng International Medical Tourism Pilot Zone can enjoy franchises including using in bulk drugs and medical equipment that have been launched in the US, the European Union, Japan, or other countries and regions but yet to be released onto the market in the Chinese mainland, which is a privilege of Hainan province,” Ling
In addition to favorable policies for the development of industries, senior management personnel and professionals in the company can also enjoy preferential personal income tax rate, the businesswoman from Taiwan added.
In an effort to promote the construction of the Hainan FTP, Hainan province has also rolled out favorable policies in the agricultural sector. The province has relaxed market access in the seed industry by taking concrete measures including canceling requirements on the area of office space, inspection room, processing plant, storage facility, etc. as well as rigid requirements on inspection room and instrument of seed companies.
Taiwan residents and Taiwan-funded enterprises are allowed to set up or join various forms of farmers’ cooperatives, including farmers’ specialized cooperatives in Hainan. Besides, Taiwan-funded agricultural companies and local ones in Hainan enjoy the same farm machinery subsidies and other preferential policies for farmers.
These measures and policies all help business people from Taiwan participate in agricultural projects and try growing and promoting new varieties of agricultural products in Hainan.
“Taiwan compatriots who have come to invest or start their own businesses in Hainan have not only brought capital but also advanced technologies and managerial experience to the province. In particular, their investments in the agricultural sector have contributed significantly to the fight against poverty and rural vitalization in Hainan,” said an official with the Taiwan affairs office of Hainan province.
Since the beginning of the construction of the Hainan FTP, business people from Taiwan have invested in more and more fields in Hainan; and modern services industry and high-tech industry are becoming key fields for investment from Taiwan, according to the official.
In an effort to better help business people from Taiwan integrate into the development of Hainan and fully enjoy the same treatment as people from the Chinese mainland, Hainan province has introduced measures for promoting economic and cultural exchanges and cooperation across the Taiwan Strait, also known as “Hainan’s 30 measures to benefit Taiwan compatriots”, and unveiled an action plan for advancing cooperation between Hainan and Taiwan for the construction of the Hainan FTP.
These measures and plans have improved Hainan’s working mechanisms for the introduction of talents and related services, offering broader space for the development of Taiwan people and enterprises.
“Hainan’s 30 measures to benefit Taiwan compatriots” specify that Taiwan-funded companies and people from Taiwan enjoy the same institutional convenience and policies rolled out by the central government and Hainan province on domestic and foreign trade, investment and financing, entry and exit, fiscal and financial support, as well as introduction of talents.
In addition, Taiwan-funded companies operating in Hainan can apply for accreditation of high-tech enterprises, enjoy as Chinese mainland companies provisions on promoting the development of high-tech industry introduced by Hainan province once officially recognized as high-tech enterprises, and be granted special fund and support from relevant policies, according to the 30 measures.
Moreover, the service stations for compatriots from Hong Kong, Macao and Taiwan, and overseas Chinese in the six key industrial parks of the Hainan FTP have also played an important part in attracting Taiwan enterprises, facilitating their growth, and better serving the needs of Taiwan people in Hainan.
“Favorable policies have brought a sense of gain to Taiwan compatriots and provided strong support for their efforts to fulfill their dreams on the mainland,” said Fu.