SANYA HUANHUAN BUSINESS CONSULTANCY LTD
WHY INVEST IN HAINAN?
The volume of foreign trade of the southern Chinese province of Hainan in January - September this year (2022) increased 41.4% in annual terms to 143.6 billion yuan (about $20.03 billion at current exchange rate).
China's exports during the reporting period rose 97.7% year on year to 47.63 billion yuan (about $6.64 billion). Imports were 95.97 billion yuan (about $13.39 billion), up 23.9% year on year.
In terms of trading partners, Hainan's trade with the One Belt, One Road initiative states increased 89.1% to 53.56 billion yuan ($7.47 billion) in January-September.
According to the results in 2021 the foreign trade turnover of the southern Chinese province of Hainan was 147.68 billion yuan ($ 23.16 billion at the exchange rate at the time of publication), an increase of 57.7%. The province's exports rose 20.1% to 33.26 billion yuan ($5.21 billion). Imports rose 73.6% to 114.42 billion yuan ($17.95 billion).
The total number of vehicles on alternative energy sources registered in the southern Chinese province of Hainan by the end of May (2021) exceeded 77,000 which was 4.87% of the total number of cars on the island.
Thus, according to this indicator, Hainan ranked fourth in China after such cities as Shanghai, Beijing and Tianjin. The total number of vehicles running on alternative energy fuel, which in China includes not only electric vehicles, but also hybrid vehicles and hydrogen fuel cell vehicles, began to skyrocket in the Hainan province after the adoption of a plan to promote green transportation in 2019. In 2019, there were about 12,000 such cars on the island, and in 2020 their number already exceeded 31,600.
In 2021, the Hainan authorities plan to increase the number of "green cars" on provincial roads by another 25,000, as well as significantly expand the network of charging stations for electric vehicles. In the first five months of the year, more than 11,300 new cars on alternative energy sources have already been registered on the island. In April, 2021 the authorities announced subsidies for individual purchases of such vehicles in the amount of 6,000-10,000 yuan ($ 937- $ 1,562).
Hainan is the first province in China to announce plans to completely end the sale of gasoline and diesel vehicles on the island by 2030 in an effort to combat pollution and protect the local environment. To this end, the government will encourage the purchase of electric and hybrid vehicles, as well as develop all the necessary infrastructure.
Last year, Hainan has worked to overcome the challenges of the international trade environment and the Covid-19 pandemic.
As a result, Hainan has achieved remarkable results in foreign trade. In 2020, the value of imports and exports in the Hainan FTP reached 93.3 billion yuan, a year-on-year increase of 3%, 1.1 percentage points higher than the national average growth rate. From January to May 2021, imports and exports reached a total value of 45.95 billion yuan, an increase of 19.7% over the same period of 2019 and a year-on-year increase of 38.5%, which was 10.3 percentage points higher than the national growth rate.
Hainan’s foreign trade had 5 notable results:
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The optimization of the import/export commodity structure.
In 2020, automobile and spare auto part exports were valued at 795 million yuan, an increase of about 3.8 times, and medical material and medicine exports totaled 450 million yuan, an increase of 19%.
2. Duty-free goods have become the main factor driving Hainan's import growth.
In 2020, duty-free product imports were valued at 23.95 billion yuan, a year-on-year increase of 80.5%, accounting for a quarter of the Hainan's total import value. From January to May of this year, 10.66 billion yuan of duty-free products have been imported, a year-on-year increase of 136.3%, accounting for about 31% of Hainan's total YTD imports.
3. The effectiveness of the new trade format.
Cross-border e-commerce has become a new bright spot in the development of foreign trade. In 2020, the 1.255 million cross-border e-commerce import orders reached a total value of over 500 million yuan, an increase of more than 5 times year-on-year. From January to May this year, there were 1.403 million cross-border e-commerce retail import orders valued at a total of 573 million yuan, a year-on-year increase of about 4.6 and 3.5 times respectively.
4. The rapid development of the emerging service trade.
In 2020, import and export of emerging services increased by 1.1 times year-on-year, much higher than the 22.89% of the previous year. From January to May this year, import and export of emerging services reached 7.148 billion yuan, a year-on-year increase of 2.15 times, accounting for 65.87% of the total service trade, and hitting a new record high. This included 6.447 billion yuan in import and export of digital services, a year-on-year increase of 3.7 times.
5. The export of special services has achieved remarkable results.
The Hainan Ecological Software Park and the Sanya Traditional Chinese Medicine Hospital were listed on the first batch of national digital service export bases and the first batch of national Chinese medicine service export bases, respectively.
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