Since the implementation of the Regional Comprehensive Economic Partnership (RCEP) on Jan 1, 2022, Hainan has deepened its cooperation with the RCEP member countries through the Hainan Free Trade Port.
The scale of goods trade between Hainan and RCEP member countries has grown rapidly. From January to November of 2022, the import and export volume of goods between Hainan and RCEP member countries reached 65.14 billion yuan ($9.63 billion). This is an increase of 25.2 percent year on year, and accounts for 35.7 percent of the total import and export volume of the province in the same period.
More and more enterprises in RCEP member countries have taken interest in Hainan because of preferential policies, such as zero tariff and low tax rates. In the first 11 months of 2022, over 170 new foreign-funded enterprises were set up in Hainan by RCEP member countries, mainly including Singapore, Australia, Japan, South Korea and Thailand. Investments from Cambodia, Japan and Australia also increased by 2,900 percent, 1,306 percent and 92.56 percent, respectively.
Many domestic enterprises have built overseas investment platforms in Hainan so that they can invest in RCEP member countries. In the first 11 months of 2022, Hainan added 47 enterprises with investment records in RCEP member countries. The actual investment in RCEP member countries was $842 million, up 236.8 percent year on year. Chinese enterprises mainly invested in manufacturing, mining, wholesale and retail industries in Indonesia, Singapore, Vietnam and Malaysia.
According to the Hainan Provincial Department of Commerce, in 2023, Hainan will build cooperation mechanisms with RCEP member countries in the fields of economy, trade and industry. Hainan also plans to build a number of cooperation platforms and projects, increase the investment attraction and enterprise services of RCEP member countries, and promote the high-quality development of RCEP in Hainan.