Free trade rules draw foreign investment to Hainan

Foreign investment continues to surge in Hainan, China's southern island province, as preferential free trade policies unfold, according to local authorities.

From January to June, 979 foreign funded companies were established in Hainan, an increase of about 385 percent over a year earlier. The actual use of foreign investment during the period surged by 623.6 percent year-on-year to reach $950 million, according to the provincial department of commerce.

Investors in enterprises with new foreign funding come from 89 countries and regions, the department said. About 90 percent of the foreign investment was injected into modern service businesses.

The growing foreign capital inflows were seen as ushering in international shipping, financial leasing, high-end consumption, education and medical care, local commerce officials said.

The provincial bureau of statistics showed that foreign trade on the island province reached 58.5 billion yuan ($9 billion) in the first half of this year, jumping by 46.1 percent year-on-year. Imports soared 69.5 percent to 44.4 billion yuan while exports edged up 1.9 percent to 14.1 billion yuan.

China released an overall plan for the Hainan Free Trade Port in June 2020, aiming to build the entire tropical island into a globally influential, high-level free trade port by mid-century.

A negative list for cross-border services in Hainan —the first negative list for the services trade in the country, was released by Chinese authorities on Monday, as one of the latest preferential policies boosting development of the Hainan free trade port.