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Island province developing key role as global consumption center

By YUAN SHENGGAO | China Daily | Updated: 2023-04-11

Hainan, the island province in South China, is actively building itself into an international tourism consumption center and is currently hosting the third China International Consumer Products Expo.

The expo, which will end on Saturday, covers an exhibition area of 120,000 square meters, a 20 percent increase from the previous session. More than 3,100 quality brands from 65 countries and regions are participating, including the debut of 300-plus brands and 1,000-plus products.

The expo is expected to attract more than 50,000 buyers and professional visitors and may welcome over 300,000 visits in total.

The expo plays an important role in connecting domestic and international markets, and speeding up the development of Hainan into an international tourism consumption center.

The province has been working to attract consumers in the areas of high-end shopping, medical care, and education in recent years.

It hopes to have sales of duty-free goods reach 300 billion yuan ($43.64 billion) during the 14th Five-Year Plan (2021-25). The Haikou International Duty Free City officially opened on Oct 28, 2022, attracting over 44,000 visits. On the same day, 11 offshore duty-free shops in Hainan achieved total sales of over 700 million yuan, a record high.

Since the first offshore duty-free shop opened in 2011, the offshore duty-free policy of Hainan has undergone eight adjustments. Duty-free goods worth over 100 billion yuan have been sold, with the annual average growth rate at 44.6 percent.

That is a result of Hainan's gradual and steady development of the distinctive free trade port, which is set up across the entire island.

To support the development and enhance the shopping experience, Hainan has allowed tourists to have two more options — "guaranteed pickup" and "buy and pickup" — for acquiring offshore duty-free goods since April 1.

Customers who choose these two methods are required to leave Hainan within 30 days from the date of purchase.

Tourists who purchase duty-free products with a unit price at and above 50,000 yuan before each departure from the island can choose the "guaranteed pickup "method, which means that in addition to paying for the goods, customers can pick up the goods on-site after submitting a guarantee equivalent to the import tax on imported goods to customs.

When leaving the island, they need to apply to customs for verification of the duty-free goods that have not yet been used or consumed, and submit the proof of purchase of the goods, along with valid identity or travel documents.

After verification by customs, if the duty-free goods submitted by the customer are consistent with the shopping information, the customs will confirm the signature on the proof.

When purchasing duty-free goods across 15 categories that are in common use for tourists staying in Hainan, including cosmetics, perfume and formula, they can choose the "buy and pickup" method for duty-free goods with a unit price of less than 20,000 yuan.

After paying for the goods, they can pick up the goods on-site, and customs will not inspect the physical goods upon departure.

Hainan also attracts travelers to spend on healthcare. It has developed a pilot zone featuring international medical tourism in Qionghai city.

The Hainan Boao Lecheng International Medical Tourism Pilot Zone, established with the approval of the State Council in 2013, allows Chinese people to use new drugs, medical equipment, and technology that are approved overseas, which have yet to be approved in the country.

Since the State Council empowered Hainan to examine and approve imported medical instruments and drugs in 2018, authorities including the provincial health commission have established a joint mechanism for specially licensed medical equipment and drugs with the zone's administration.

They have kept enhancing approval, customs clearance, and use and supervision of the equipment and medication.

Yan Lukai, publicity head at the zone's administration, said the zone hopes to raise the profile of Lecheng and inform more patients that they can use medical devices and drugs that have been launched abroad.

The Lecheng pilot zone has imported more than 300 kinds of sought-after clinical medicines and equipment and become a main channel for international innovative drugs and devices to first enter the Chinese market.

Hainan has also determined to promote international education where well-known foreign and domestic universities participate. The Hainan Li'an International Education Innovation Pilot Zone, located in the Li'an Peninsula of Lingshui Li autonomous county, is among the 13 key parks of the Hainan Free Trade Port.

It is also an important platform for Hainan to become an international education innovation island.

Currently, more than 20 Chinese and foreign universities have signed agreements with the province to develop in the zone, including Peking University based in Beijing, Southeast University based in Nanjing and Nankai University based in Tianjin, as well as renowned international universities such as the University of Alberta in Canada and the University of Glasgow, United Kingdom.

Totally, 500 students registered in the zone in autumn 2022. It wants to create a brand, "studying in Hainan is equivalent to studying abroad", that features both Sino-foreign cooperative education and education provided independently by overseas universities.

The zone enjoys convenient transport and advantageous natural resources including mountains, sea, lakes, rivers and forests. Its stadium sits near the 10-square-kilometer Li'an lagoon, featuring a lake-sea view.

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The Global Premium Duty Free Plaza in Haikou is a popular choice for visitors to the capital city of Hainan province. CHINA DAILY