Hainan gains 428,000 new market entities from June 2020 to June 2021

From June 2020 to June this year, Hainan witnessed 428,000 new market entities, an increase of 52.31 percent month on month, according to a Hainan Daily report on Aug 10. Notably, the number of newly established companies hit 200,000.

In the first half of 2021, there were 191,000 new market entities in the province, a year-on-year increase of 69.23 percent.

"We are making full use of the 'zero-tariff' policy to carry out yacht import business. Thanks to the construction of the Hainan Free Trade Port, we are very optimistic about the company's future development prospects," said Lin Mingkun, general manager of a Hainan-based yacht company.

Lin established his company in Haikou in August 2020 to offer services such as yacht sales and consultation. "The transportation and 'zero tariff' policies of the Hainan FTP as well as the corporate and personal income tax preferential policies all benefit us a lot. And the yacht industry in Hainan is very promising," Lin added.

A few days ago, the world-renowned diamond jewelry corporation De Beers Forevermark established a subsidiary in Haikou to promote its operation center project and build its Asia-Pacific supply chain center in Hainan.

"The convenient customs clearance at the Hainan FTP and the policy of exemption of import tariffs for goods with more than 30 percent of the value-added processing of imported materials and parts have attracted us," said Benson Wu, vice president of Business Transformation & Operations, De Beers Forevermark.

De Beers will build a diamond and jewelry processing and manufacturing base in Hainan, and the finished products will be shipped and supplied to the entire Asia-Pacific region, Wu added.

New statistics also show that in the first half of this year, there were 979 newly established foreign-invested enterprises in Hainan, increasing fivefold from the same period in 2019. The number of newly established foreign-invested enterprises was close to a total of newly established enterprises in 2020.

American oil company doTerra is very optimistic about its business opportunities in China. According to Owen Messick, president of doTerra China, China is the most important overseas market for doTerra and his company is very optimistic about the huge opportunities in the Chinese market. In June this year, the American essential oil company established a subsidiary in Hainan.

Since the beginning of this year, a number of policies and measures in areas such as Hainan's foreign investment sector have been launched to encourage enterprises to participate in the development of the Hainan FTP. For example, the negative list for foreign investment access was revised on Feb 1, and only 27 restrictions were retained. 

On June 10, China passed a law making institutional arrangements for the construction of the Hainan FTP at the national legislative level.