China’s Hainan – much more than the “next Hong Kong”
There is perhaps no better example of China’s relentless economic push than Hainan, the once-sleepy tropical island that is now poised to become a can’t-miss-opportunity for global businesses wanting to do business with China.
Becoming a global trade hub
Beijing unveiled plans to make Hainan a global trade hub by 2050 with incentives aimed at attracting global businesses
In June 2020, Beijing unveiled plans to make the tropical island a “free trade port” and global trade hub by 2050, by lowering the income tax rate for companies in specific industries to 15% and slashing import and mainland export duties, among a slew of other incentives aimed at attracting global businesses.
As economic and political tensions threaten relationships with major export markets like the US and Europe, China has been looking not only at its huge domestic market for sustained economic growth, but also at how to attract global businesses now that Hong Kong is mired in political volatility.
And it appears businesses around the globe are already taking notice: more than 2,000 foreign companies were registered in Hainan from January to August 2020, an increase of 290% year-on-year, according to a report by Hainan Daily.
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