China - July 18, 2024

Hainan free trade port emerging as gateway of China's opening-up

(Voice_over)

Africa, South America, Europe, Canada... Cocoa beans and supplementary materials get collected here from across the globe. After processing, they are turned into chocolates and then depart from the port to be sold to the United States, Mexico, and Italy. Here is the Hainan Free Trade Port, situated in Hainan, the southernmost province in China. From here, the black cocoa beans act as a bond, joining the world together.

(Sound_bite)

Meng Weiwei, General Manager, Jia Green Chocolate Works(Hainan) Co.,Ltd.:

"Transshipment through the terminal port is more convenient than air transportation in terms of customs clearance – which is a unique advantage of Hainan. Hainan is now upgrading the port terminals under customs management and strengthening the construction of supporting hardware. After the goods arrive, they can be cleared and transferred at the terminal quickly."

(Voice_over)

Since its initiation six years ago, the number of registered enterprises in the Hainan Free Trade Port has soared from merely over 10,000 in the initial stage to over 100,000 in 2024.

The convenient and well-developed environment lays the fundamental ground for creating a business-friendly atmosphere, while enhancing the service and guarantee levels for the settled enterprises is what lures enterprises into establishing their presence here.

(Sound_bite)

Meng Weiwei, General Manager, Jia Green Chocolate Works(Hainan) Co.,Ltd.:

"After our enterprise was established in Hainan, the Service Office of Jiangdong New Area assigned commissioners to interface with the newly established enterprises and assisted us in handling matters. The commissioners list the required documents. After all the documents are collected, they arrange for dedicated personnel to review those. After a few working days, the processing is completed."

(Voice_over)

In 2021, the Hainan Free Trade Port established the policy of tariff exemption for domestic sales of value-added processing. As of the end of May 2024, a total of 26 enterprises have carried out value-added processing business, with a domestic sales value amounting to 5.1 billion yuan and a tariff reduction and exemption reaching 420 million yuan.

(Sound_bite)

Meng Weiwei, General Manager, Jia Green Chocolate Works(Hainan) Co.,Ltd.:

"Enterprises that import raw materials for local processing, add at least 30 percent in value, and then sell the products domestically, can benefit from tariff exemptions. Additionally, there's a policy that caps both the corporate income tax and the personal income tax of executives for encouraged enterprises. These two policies were crucial factors in our decision to come to Hainan – as it significantly reduces operating costs for businesses."

(Voice_over)

In 2022, Chinese President Xi Jinping pointed out during his inspection in Hainan that it is necessary to accelerate the construction of a free trade port with Chinese characteristics with global influence.

The year 2024 is of special significance for the Hainan Free Trade Port. Hainan will initiate the island-wide customs closure and establish a special zone to implement a "zero tariff" policy with other countries and regions outside the Chinese mainland.

(Sound_bite)

Ye Zhanbo, Director of Press, Office of Hainan Provincial Development and Reform Commission:

"Generally speaking, after the customs closure operation, the objects of customs supervision are goods and articles. At that point, engaging in economic and trade activities and cross-border capital flows in Hainan will be easier and facilitated better. The import business will realize 'zero tariffs', and the personal income tax will likewise be the lowest in the entire country."

(Sound_bite)

Nicki Wang, Assistant General Manager, Green Chocolate Works Ltd. Canada:

"The general manager of the Hainan factory has provided feedback that the local business environment and free trade port policy advantages are very suitable for the development of our enterprise. Hainan is a place in China where cocoa can be grown, and we have plans to build a chocolate town tourism project in Hainan in the future."

(Voice_over)

The Hainan Free Trade Port is a part of the grand mosaic of 22 free trade zones in China. The free trade zones serve as China's experimental plots, high-yielding grounds for institutional innovation, and windows for the expansion of opening-up to the outside world. Here, innumerable enterprises like this Canadian chocolate factory will discover new ideas and inspirations for development.

[Restriction: No access Chinese mainland]