For two decades, establishing a hospital in China meant finding a Chinese partner. That requirement has now been lifted for nine specific locations, and Hainan is the only one where the pilot applies across an entire province rather than a single city. A Singapore-based healthcare group has already signed a cooperation agreement for a 600-bed tertiary facility in Sanya. The window is open and the first movers are moving.

This thread sets out what the pilot permits, what it requires, and how approval works in Hainan.

The Legal Basis

The pilot derives from two instruments issued in late 2024. On September 7, the Ministry of Commerce, the National Health Commission, and the National Medical Products Administration issued a notice permitting wholly foreign-owned hospitals across nine designated locations. On November 1, the National Health Commission, together with the Ministry of Commerce, the National Administration of Traditional Chinese Medicine, and the National Disease Control Bureau, issued the Pilot Program for Expanding the Opening-Up of Wholly Foreign-Owned Hospitals, which sets out the specific conditions and management framework.

Hainan is the only location in the pilot where permission extends across the entire island. The other eight locations are individual cities: Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, and Shenzhen.

What Is Permitted

Foreign investors may establish wholly foreign-owned hospitals in Hainan -- general hospitals, specialty hospitals, and rehabilitation hospitals -- at tertiary level, on either a for-profit or non-profit basis.

The following are explicitly excluded from the pilot scope:

• Traditional Chinese medicine hospitals
• Acquisition of existing public hospitals
• Psychiatric hospitals
• Infectious disease hospitals
• Hematology hospitals
• Integrated Chinese and Western medicine hospitals
• Ethnic minority medicine hospitals

The following medical activities are prohibited regardless of hospital type:

• Human organ transplantation
• Assisted reproductive technology
• Prenatal screening and diagnosis
• Inpatient psychiatric treatment
• Experimental cancer cell therapy
• Any clinical department registered as hematology

These exclusions are not incidental. They reflect deliberate policy boundaries around human genetic resource security, medical ethics, and the protection of existing public hospital capacity.

Investor Qualification Requirements

Foreign investors must be legal entities capable of independently assuming civil liability. Beyond the legal form requirement, three substantive criteria apply:

First, the investor must have direct or indirect experience in healthcare investment and management. A holding company with no prior healthcare track record does not qualify on its own.

Second, the investor must be able to provide internationally advanced hospital management concepts, models, and service approaches. This is an assessed criterion, not a self-declaration.

Third, the investor must be able to supplement or improve local capacity in medical services, technology, and facilities -- contributing to a diversified healthcare supply system rather than duplicating existing provision.

The policy is explicitly designed to bring in international capability that does not already exist locally. Investors whose value proposition is primarily financial rather than operational are unlikely to satisfy the second and third criteria.

Staffing Requirements

Wholly foreign-owned hospitals may hire foreign physicians, physicians from Hong Kong, Macao, and Taiwan, and other healthcare professionals from Hong Kong and Macao for short-term practice. However, Chinese mainland personnel must account for no less than 50% of both the management team and the healthcare professional staff.

For foreign medical professionals employed in these hospitals, there is an additional benefit available in Hainan. Those whose overseas qualifications are recognised by the relevant industry authorities and who hold a Permanent Residence Permit for Foreigners or a Residence Permit for High-level Overseas Talents may apply for professional title evaluation based on their expertise and work performance under Hainan provincial regulations.

Data and Systems Requirements

Two non-negotiable technical requirements apply to all wholly foreign-owned hospitals:

The hospital's information management system must be connected to the local medical service regulatory platform. Electronic medical records, medical equipment data, and other information storage servers must be physically located within China's territory. Cross-border data transfer of patient records and clinical data is not permitted.

Investors accustomed to operating integrated international health record systems will need to plan for localised data architecture from the outset.

Medical Insurance and Commercial Coverage

Wholly foreign-owned hospitals that meet the relevant criteria may apply for inclusion in China's basic medical insurance designated system. The application is treated on equal terms with domestic public and private institutions -- ownership structure is not a disqualifying factor.

To qualify for medical insurance designation, hospitals must adopt the unified medical service pricing items applicable to medical institutions in their region, implement unified pharmaceutical and medical device pricing policies, accept DRG and DIP payment reform requirements, and submit to full supervision by healthcare security authorities including on-site inspections and intelligent supervision system connectivity.

Hospitals that do not seek insurance designation may set their own prices and operate under standard industry regulation.

Beyond the public insurance system, wholly foreign-owned hospitals are supported in connecting with both domestic and international commercial health insurance providers. For hospitals targeting internationally mobile patients and expatriate populations, commercial insurance connectivity may be the more relevant framework.

The Approval Process in Hainan

The approval pathway in Hainan has two tracks depending on location.

For hospitals outside the Boao Lecheng International Medical Tourism Pilot Zone, applications are submitted first to the municipal or county-level health administrative department for preliminary review, then to the Hainan Provincial Health Commission for final approval. The Provincial Health Commission issues both the Approval for the Establishment of a Medical Institution and the Medical Institution Practice License. The Practice License is valid for five years and is renewable.

For hospitals within the Lecheng Pilot Zone, applications are submitted to the Lecheng Pilot Zone Administration Bureau. The Lecheng Medical and Pharmaceutical Supervision Bureau issues the relevant approvals. The Lecheng pathway benefits from one-stop service coordination and a joint meeting mechanism among health, commerce, administration, and regulatory authorities -- with "one case, one discussion" and "one hospital, one policy" approaches available to resolve specific issues during establishment.

For investors with a healthcare and medical tourism focus, the Lecheng Pilot Zone offers both the most streamlined approval process and the broadest access to Boao Lecheng's existing international medical infrastructure.

The First Mover: Singapore Perennial Holdings, Sanya

Perennial Holdings is a Singapore-based diversified group integrating real estate and healthcare, with operations across China, Singapore, Malaysia, and Indonesia. Its China healthcare network spans 16 cities with over 22,000 beds across general hospitals, rehabilitation hospitals, specialty hospitals, wellness centers, senior care apartments, and nursing homes.

Following preliminary coordination with the Sanya Municipal Health Commission, Perennial has expressed intent to acquire Sanya Guang'anmen Hospital and use the existing site to establish a wholly foreign-owned hospital focused on premium rehabilitation, health management, and eldercare services.

The proposed facility in Haitang District covers approximately 9.27 hectares with a total construction area of 136,144 square meters and is planned for 600 beds at tertiary Class-A standard. The land transfer fee has been paid in full. Phase I construction is substantially complete. On November 8, 2024, Perennial signed a cooperation agreement with Liwang Excellence (Sanya) Health Management Co., Ltd.

The Perennial project is notable not only as the pilot's first major commitment in Hainan, but because it was structured as a proposed acquisition of an existing facility -- a pathway that the pilot explicitly excludes for public hospitals but does not restrict for private ones.

The Strategic Context

By the end of 2023, China had 38,000 hospitals including 3,855 at tertiary level. Public hospitals account for 83.5% of all hospital visits nationwide. The wholly foreign-owned hospital pilot is not designed to compete with that system. It is designed to address what that system does not provide: diversified, internationally benchmarked medical services for China's growing middle class and for the country's substantial and growing expatriate population.

For healthcare investors currently evaluating Asia-Pacific market entry, Hainan's position in this pilot is materially different from the other eight locations. Island-wide coverage, the Boao Lecheng infrastructure, the 15% corporate income tax rate, the Hainan talent policies for overseas professionals, and the existing framework for importing unapproved overseas drugs and devices for clinical use in Lecheng -- these are not available in any of the eight city-level pilot locations.

The combination warrants a serious look.

Source: FTP Enterprise Navigator / Pilot Program for Expanding the Opening-Up of Wholly Foreign-Owned Hospitals, National Health Commission, November 2024 Lead department: Hainan Provincial Health Commission Contact: 0898-65311951 | bgs_yzygj@hainan.gov.cn | No. 38 Haifu Road, Meilan District, Haikou

In 2011, Hainan's offshore duty-free quota was RMB 5,000 per person per year. By 2020, it was RMB 100,000, a twenty-fold increase in under a decade. The per-item cap that used to limit individual purchases was abolished entirely. The number of qualifying product categories expanded from 38 to 45. And the policy was opened to all qualified operators, not just state-designated retailers.

The Legal Basis

The current framework derives from the Announcement on Offshore Duty-free Shopping Policy for Hainan Travelers, issued jointly by the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration, effective July 1, 2020. It implements the Master Plan for the Construction of the Hainan Free Trade Port, which mandated the quota increase and category expansion with State Council approval.

Three taxes are waived in full on qualifying purchases: customs duties, import VAT, and consumption tax.

Who Qualifies to Buy

Any individual aged 16 or above who holds a valid departure ticket from Hainan, by air, rail, or sea, and carries valid identification. This includes:

• Mainland Chinese residents (resident identity card)
• Hong Kong, Macao, and Taiwan travelers (travel documents)
• Foreign nationals (passport)
• Hainan residents themselves, departing the island

The policy explicitly covers residents of Hainan Province. A Haikou resident boarding a flight to Shanghai qualifies on every trip. That detail matters for understanding actual purchase frequency, this isn't limited to tourists passing through.

The Quota Structure

Each eligible traveler receives an annual duty-free shopping quota of RMB 100,000 with no restriction on the number of purchases within that annual limit. The previous per-item cap of RMB 8,000 has been abolished -- a single watch or piece of jewellery at any price point can be purchased within the annual quota.

Quantity limits apply to three categories only:

Everything else in the 45 qualifying categories, including jewellery, watches, bags, eyewear, apparel, and electronics, is limited only by the RMB 100,000 annual quota, not by per-item or per-transaction quantity caps.

Purchases exceeding the annual quota or category quantity limits are subject to standard import taxes on inbound goods.

The 45 Categories

The policy covers 45 product categories including cosmetics, jewellery, luggage, eyewear, apparel and accessories, watches, mobile phones, and alcoholic beverages. The 2020 expansion added seven categories preferred by consumers, with electronic products the most commercially significant addition.

The removal of the single-item price cap alongside the category expansion is the combination that changed the retail economics. A luxury watch at RMB 80,000 now fits entirely within one traveler's annual quota. Previously it would have triggered tax on the amount above the per-item ceiling.

Where Purchases Can Be Made

Qualifying purchases must be made at duty-free shops implementing the policy or through approved online sales channels. Twelve stores in Hainan currently hold qualifying concessions, including:

• China Duty Free Haikou Meilan Airport Duty-Free Store
• China Duty Free Haikou Meilan Airport (Phase II) Departure Duty-Free Store
• China Duty Free Haikou Sun Moon Plaza

The 2020 policy change opened participation to all qualified business entities on equal terms, a deliberate move to introduce competitive pressure into what had previously been a state-monopoly distribution structure.

How Goods Are Collected

Buyers have four collection options:

Standard pickup: Goods are collected at designated pickup points in airports, train stations, or ports before departure, after presenting a shopping voucher.

Immediate pickup: For items priced at no more than RMB 20,000 per unit (excluding tax) and within per-category quantity limits, buyers can collect on the spot at point of purchase without customs inspection at departure.

Postal delivery: If the purchaser, payer, and recipient are all the same departing traveler and the delivery address is outside Hainan Province, the duty-free shop can mail the goods in a single shipment after confirming departure.

Return-to-island pickup: Hainan residents, including those holding a Hainan Identity Card, Residence Permit, or social security card, and foreign nationals with a Hainan residence permit -- who have departed and returned may collect pre-purchased goods at designated pickup points for returning travelers.

The return-to-island pickup option is operationally significant. It means a Hainan-based professional can purchase duty-free goods, leave the island on a business trip, and collect on return. Purchase and collection are decoupled from a single departure event.

The Resale Prohibition

Duty-free goods are classified as final personal-use items of the consumer and cannot be re-entered into the domestic market for resale. The 2020 policy framework strengthened enforcement, defining clear legal responsibilities for individuals, enterprises, and duty-free shops involved in resale or smuggling activity.

This is the constraint that matters for brands assessing grey market risk. The policy design explicitly targets personal consumption, not arbitrage -- and the enforcement framework was tightened precisely because the quota increase made the economics of resale more attractive.

The Retail Market Context

By the end of 2019, before the quota increase, Hainan's offshore duty-free programme had generated 16.31 million shopping transactions and RMB 53.8 billion in duty-free sales since the 2011 pilot launch. The 2020 reforms tripled the annual quota, abolished the per-item cap, and added seven product categories. The sales trajectory since then reflects a market that was deliberately engineered to capture consumer spending that was previously flowing to Hong Kong, Japan, South Korea, and Europe.

For international brands assessing Hainan as a distribution channel: the duty-free concession system is the entry point, and the competitive opening of that system to qualified operators is the structural change that makes it worth evaluating seriously.

Source: FTP Enterprise Navigator / MOF-GAC-STA Announcement on Offshore Duty-free Shopping Policy for Hainan Travelers, effective July 1, 2020 Lead department: Department of Commerce of Hainan Province Contact: 0898-65311802

Once a year, the China International Consumer Products Expo transforms Haikou into the most tax-advantaged retail environment in Asia. Imported exhibits sold during the event, watches, jewellery, cameras, handbags, furniture, are exempt from import duties, import VAT, and consumption tax in their entirety. Not reduced. Exempt.

For brands and distributors currently paying full import tariffs to access the Chinese market, the CICPE window is worth planning around.

The legal basis

The policy is established under MOF-GAC-STA Joint Document No. 32 , issued jointly by the Ministry of Finance, General Administration of Customs, and State Taxation Administration. It implements the Master Plan for the Construction of the Hainan Free Trade Port with State Council approval, this is not a local pilot, it's a nationally authorised exemption.

What's exempt

All three tax layers are waived on qualifying sales:

• Import duties
• Import-related VAT
• Consumption tax

The exemption applies to imported exhibits sold during the exhibition period, within the per-exhibitor quantity and value limits set out below. Exhibits sold above those limits, or unsold exhibits not re-exported after the event ends, are taxed under standard national regulations.

Four categories are excluded regardless of limit: goods prohibited from import by the state, endangered species and their products, tobacco, alcohol, and automobiles.

Per-exhibitor limits by category

The per-item cap on high-value categories, USD 10,000 for watches and jewellery, is the operative constraint for luxury brands. A Rolex at USD 8,000 qualifies. A Patek Philippe at USD 35,000 does not, unless sold outside the preferential window at standard tariff rates.

How exhibits move through the system, the 13 steps

The logistics chain is tightly supervised. This is not a grey area operation, every stage is customs-managed:

1. Overseas exhibits arrive at a domestic port of entry
2. Official exhibition logistics provider submits the import declaration
3. Customs inspection (conducted in a designated inspection area if required)
4. Customs releases the goods on successful inspection
5. Official logistics provider transports exhibits to a customs-designated bonded storage area
6. After exhibitor check-in, logistics provider delivers exhibits to the designated booth
7. Exhibition of products
8. Sales during the exhibition period
9. Exhibition ends
10. On day one of dismantling, exhibitors sort and collect sold exhibits that meet the tax eligibility criteria
11. Exhibitors hand qualifying sold exhibits to the official logistics provider for delivery to a customs-supervised warehouse
12. Official logistics provider assists the exhibitor in submitting the retention purchase declaration
13. Upon declaration completion, retained goods are delivered to the customer's designated location

The critical operational point: sold goods don't go straight to the buyer. They route through a customs-supervised warehouse and a formal retention purchase declaration before final delivery. Build that into your customer communication, the handover happens post-declaration, not on the exhibition floor.

Who manages the exhibit lists

The Hainan International Economic Development Bureau, or its designated entity, submits both the list of participating enterprises and the list of exhibits sold during the exhibition to Haikou Customs in consolidated form. Individual exhibitors don't file directly with customs on this point; your logistics provider handles it.

Contact: Hainan International Business Council, 0898-66538991, Global Trade Window, Guoxing Avenue, Haikou.

What the first CICPE showed

At the inaugural expo, 25 exhibitors sold imported exhibits with a combined value of approximately USD 322,183. Categories included apparel, handbags, infant formula, beef, jewellery pendants, and cosmetics. Small numbers relative to the available limits, which means the exemption headroom for subsequent expos has been largely untouched.

The strategic angle

For brands currently paying 20–60% combined tariff and VAT on imports into China, the CICPE exemption represents a genuine price advantage on a defined volume of product, particularly in the watch, jewellery, and optical categories where the per-item cap still covers a meaningful slice of the range.

For distributors and trading companies, participating as an exhibitor, even with a modest booth, unlocks the exemption for up to USD 20,000 in sales of non-categorised goods. The cost of participation needs to be weighed against the tariff saving on that volume.

The note worth keeping in mind: this policy explicitly applies before the island-wide customs closure comes into full effect. Post-closure, the broader zero-tariff framework for goods circulating within Hainan changes the calculus. For now, the CICPE window remains the clearest annual mechanism for duty-free access to the China consumer market for foreign brands exhibiting in Hainan.

Source: FTP Enterprise Navigator / MOF-GAC-STA Joint Document No. 32 Lead departments: Hainan International Business Council | Haikou Customs District Contact: 0898-66538991

Most operators who've looked at Hainan know about the 15% corporate income tax rate. Fewer have worked through what happens when profits flow back from an overseas subsidiary. In most jurisdictions, that repatriation triggers a top-up tax, the difference between what you paid abroad and what your home jurisdiction charges. In Hainan, for qualifying enterprises, that top-up doesn't apply. The overseas profit comes back clean.

This is one of the more consequential and least-discussed advantages of the Hainan FTP structure. Here's how it works.

The policy in plain terms

Enterprises registered in the Hainan Free Trade Port that derive income from new overseas direct investments are exempt from corporate income tax on that income, provided the investment was made after the qualifying date, falls within the approved industry categories, and meets the structural requirements for what counts as direct investment income.

The operative word is new. Existing overseas investments at the time of Hainan registration don't qualify. The exemption applies to incremental outbound investment made from a Hainan-registered entity going forward.

Three conditions to clear

1. Timing of new investments

The investment must be made after the enterprise is established in Hainan and after the qualifying date set by the policy. Pre-existing overseas holdings don't receive the exemption, only investments initiated from the Hainan entity.

2. The business must appear in the preferential catalogue

Your principal business must fall within the Catalogue of Preferential Corporate Income Tax Policies for Tourism, Modern Services, and High-Tech Industries in the Hainan Free Trade Port. As with the 30% value-added rule, the 60% revenue threshold applies: income from your qualifying main business must account for more than 60% of total enterprise income.

3. The income must qualify as direct investment income

Not all overseas income is covered. The policy specifies two eligible income types:

• Operating profits from newly established overseas branches
• Dividend income from overseas subsidiaries where your ownership stake exceeds 20%, corresponding to the newly added investment

There is one additional condition on the overseas entity itself: the statutory corporate income tax rate in the country or region of investment must be not less than 5%. Investments into zero-tax jurisdictions don't qualify.

What counts as direct investment

Four forms of outbound investment are recognised:

1. Establishing a new branch overseas
2. Establishing a new enterprise overseas
3. Increasing capital or expanding equity in an existing overseas enterprise
4. Acquiring equity in an overseas enterprise

The third and fourth forms are particularly useful. If you already have an overseas entity and a Hainan parent subsequently increases its stake, as in Case 3 below, the exemption applies to the income attributable to the increased stake, not to the pre-existing holding.

How to claim it

The mechanism is self-assessment: you calculate the exemption, declare it in your annual corporate income tax filing, and retain documentation for inspection. There's no pre-approval process.

For resident enterprises, this is reported in Form A108010 (columns 19–26), under "New Overseas Direct Investment Income of Hainan Free Trade Port Enterprises."

For non-resident enterprise institutions, it's reported in Form F200 (line 5 and subordinate lines 6–10), using exemption nature code 04039907.

Filing is handled through the Electronic Taxation Bureau: I want to do tax → Tax Declaration and Payment → Regular Declaration.

Contact: Hainan Provincial Tax Service, 0898-12366, No. 10 Longkun North Road, Haikou.

Three cases that show the actual numbers

The policy authority has published three worked examples. They're worth reading carefully, the tax savings are not trivial.

Case 1: Culture & Communications company, Sanya

A tourism enterprise registered in Sanya in 2020 established a wholly owned subsidiary in Hong Kong in March 2022. The Hong Kong subsidiary earned RMB 500 million in net profit in 2022, paying 16.5% corporate income tax in Hong Kong (RMB 82.5 million).

When the after-tax profit was repatriated to the Hainan parent in 2023, a standard Chinese entity outside a preferential zone would have owed an additional 8.5%, the top-up between Hong Kong's 16.5% and China's standard 25% rate. That would have been RMB 42.5 million.

Under the Hainan exemption: RMB 42.5 million saved on a single repatriation.

Case 2: Cold Chain Logistics company, Yangpu

A modern services enterprise registered in Yangpu in 2020 acquired a wholly owned Hong Kong logistics subsidiary in January 2022. The subsidiary earned RMB 100 million in net profit in 2022 at 16.5% Hong Kong tax.

Standard top-up tax on repatriation: RMB 8.5 million. Under the Hainan exemption: RMB 8.5 million saved.

Case 3: Energy Technology company, Chengmai

This case illustrates the partial exemption when an existing stake is increased. A high-tech enterprise registered in Chengmai in 2021 raised its shareholding in a Hong Kong company from 10% to 30% in January 2022. The Hong Kong company earned RMB 10 million in profit in 2022, distributing RMB 3 million to shareholders in 2023.

The dividend income attributable to the increased 20% stake: RMB 2 million (calculated as 20%/30% × RMB 3 million). The remaining RMB 1 million, attributable to the pre-existing 10%, remains taxable.

Standard top-up on the full RMB 3 million: RMB 255,000. Under the Hainan exemption, only RMB 85,000 is owed (8.5% on the non-exempt RMB 1 million). Tax reduced by RMB 170,000 — and the principle scales linearly with the size of the investment.

What this means structurally

For operators currently using Hong Kong or Singapore as their holding jurisdiction for Asia-Pacific investments, the Hainan structure introduces a different calculus. The question isn't simply "what's the headline tax rate", it's "what happens when profits flow back up the chain."

A Hainan entity holding overseas subsidiaries in jurisdictions above the 5% threshold pays 15% corporate tax on its domestic Hainan income and zero top-up on qualifying repatriated overseas profits. The combination is worth modelling against your current structure.

The constraint, again, is the 60% revenue threshold from encouraged industry activities. This is a serious operating requirement, not a box-ticking exercise. But for businesses whose core activity already falls within tourism, modern services, or high-tech, and who have or plan overseas subsidiaries, the exemption materially changes the economics of where to locate the holding entity.

Source: FTP Enterprise Navigator, Hainan Provincial Tax Service Responsible divisions: Division of Corporate Income Tax and Division of International Taxation Contact: 0898-12366

Every serious operator in the region has heard the headline: manufacture or process goods in Hainan, and they enter the Chinese mainland tariff-free. What almost nobody has read is the fine print. The mechanism that makes this possible, and the conditions that determine whether your operation actually qualifies, matter enormously before you commit to a structure.

This is that fine print, explained plainly.

The core rule

Goods produced within the Hainan Free Trade Port are exempt from import duties when they cross the "second line" into mainland China, subject to one of two conditions:

1. The finished product contains no imported materials or parts at all, or
2. The imported content has been processed to a point where the value added within Hainan is at least 30% of the total material cost

Import VAT and consumption tax still apply — the exemption covers tariffs only. That distinction matters for your landed-cost calculations.

When the pilot started and where it applies now

This wasn't available island-wide from day one. The policy was first piloted on July 8, 2021 in the Yangpu Bonded Port Area, then expanded progressively. As of September 29, 2024, every enterprise in the Hainan FTP that meets the eligibility conditions can participate, inside or outside customs special supervision zones.

The expansion to outside-zone enterprises is significant. It means the policy isn't limited to companies physically inside Yangpu or the Haikou comprehensive bonded zones. If you're registered in Hainan and meet the criteria, you're eligible to apply.

Who qualifies: the three eligibility hurdles

Hurdle 1: You must be a registered Hainan entity with independent legal person status.

A representative office or branch doesn't qualify. You need a properly incorporated entity registered in the FTP.

Hurdle 2: Your main business must be in an encouraged industry, and it must dominate your revenue.

This is where operators get caught out. It's not enough to touch an encouraged industry. The income from your encouraged industry activities must account for more than 60% of total enterprise income. If you're running a diversified operation where processing is one revenue stream among several, you may not clear this bar without restructuring.

To check whether your activity qualifies: domestic enterprises look to the Industrial Structure Adjustment Guidance Catalogue (2024 edition) plus the Hainan-specific encouraged industries catalogue. Foreign-invested enterprises look to the National Encouraged Foreign Investment Industries Catalogue (2022 edition) and the Advantageous Foreign Investment Industries Catalogue for Hainan. Both catalogues are updated periodically, the current version governs.

Hurdle 3: Your customs management setup must be in order — and this differs depending on whether you're inside or outside a special supervision zone.

Inside a customs special supervision zone (Yangpu Bonded Port Area, Haikou Comprehensive Bonded Zone, Haikou Airport Comprehensive Bonded Zone):

• Filed with the zone management authority, with materials, products, and processing technologies approved
• Processing trade goods ledger established
• Production data connected to the Hainan FTP public service management platform in a format customs accepts

Outside a customs special supervision zone:

• Not on the customs dishonesty list
• Processing trade goods ledger established
• Real-time data connectivity with customs
• Video surveillance that meets customs supervision requirements
• Application reviewed by the Hainan Provincial Government and filed with the relevant national ministries

The outside-zone pathway has an additional step — provincial government review before national filing. Build that timeline into your planning.

How the 30% is calculated

The formula differs depending on whether you're inside or outside a supervision zone, but the logic is the same: value added divided by total imported material cost must equal or exceed 30%.

Inside a supervision zone:

(Domestic sales price upon exit − Total overseas imported material cost − Total domestic non-free-zone material cost) ÷ (Total overseas imported material cost + Total domestic non-free-zone material cost) × 100% ≥ 30%

Outside a supervision zone:

(Domestic sales price − Overseas imported material price − Domestic procurement material price) ÷ (Overseas imported material price + Domestic procurement material price) × 100% ≥ 30%

A few definitions worth anchoring:

• Overseas imported material price = transaction price paid by the enterprise, including freight and insurance to the domestic entry point (CIF basis)
• Domestic non-free-zone material price = transaction price for materials purchased from mainland China, including freight and insurance to the Yangpu bonded port area
• Domestic sales price = the transaction price at which goods are sold to buyers outside the zone

The practical implication: companies using significant quantities of mainland Chinese inputs alongside imported materials need to model this carefully. Both categories of external inputs reduce your value-added ratio.

What happens when goods are sold domestically

If your value-added rate clears 30%, tariff exemption applies on exit. Import VAT and consumption tax are still collected.

If your goods don't clear 30%, or if you're selling products domestically that you'd otherwise export, the tax treatment reverts to processing trade rules. For inside-zone enterprises, the selective tariff policy for comprehensive bonded zone domestic sales applies. For outside-zone enterprises, bonded imported materials are declared, customs levies supplementary duties, and deferred tax interest applies.

This two-track outcome makes the 30% threshold a genuine operational decision point, not just a compliance checkbox.

The contact point if you're applying

Lead authority: Haikou Customs District and the Department of Commerce of Hainan Province

• Haikou Customs: 0898-12360 | cpcrk@126.com | No. 61 Binhai Avenue, Haikou
• Commerce Department: 0898-65373056 | 2nd Floor, Provincial Government Office Building, No. 9 Guoxing Avenue, Haikou
• Relevant divisions: Division of Free Trade (Customs) and Division of Free Trade Port Reform and Development (Commerce)

The strategic question this policy answers

If your current structure routes manufacturing or processing through Vietnam, Malaysia, or Thailand to access mainland China tariff exemptions — the Hainan 30% rule warrants a direct comparison. Hainan offers the same tariff exemption mechanism with the additional advantage of the 15% corporate income tax rate and, for qualifying talent, the 15% personal income tax cap.

The constraint is real: the 60% income threshold from encouraged activities means this doesn't work for loosely diversified operations. But for a focused processing or manufacturing play targeting the mainland market, the economics are worth modelling properly.

Source: FTP Enterprise Navigator, Haikou Customs District P.R. China / Department of Commerce of Hainan Province Policy effective island-wide: September 29, 2024

Last updated: April 2026

Overview

Hainan has been China's primary winter breeding ground for decades, but what was once a seasonal research base has been transformed into one of the country's most ambitious agri-tech initiatives. The "Nanfan Silicon Valley" — first proposed by President Xi Jinping during his April 2018 visit to Hainan — is now a fully-fledged national strategic project, written into the Central Government's No. 1 Document for 2025 and given formal planning status through 2030. The December 2025 island-wide customs closure has added a new dimension, opening the door to genuinely international seed trade and research collaboration at a scale not previously possible.

For foreign businesses and researchers, the seed industry represents one of Hainan's most distinctive and open investment sectors — with regulatory reforms actively designed to attract international participation.

Why Hainan for Seed Research?

Hainan's natural advantages for seed breeding are well established and remain the foundation of the industry:

• The warm winter and spring climate shortens new crop variety breeding cycles by 30% to 50% compared to northern China
• Year-round growing conditions allow multiple crop generations per year, dramatically accelerating variety development
• The island holds one of China's richest biodiversity reserves, providing extensive native germplasm resources
• The Nanfan Scientific Research and Breeding Reserve covers approximately 268,000 mu and has long served as China's primary southern breeding base — more than 70% of the country's cultivated crop varieties have been developed here at some stage

The Strategic Framework — What Nanfan Silicon Valley Actually Means

In January 2024, five national ministries — Agriculture and Rural Affairs, NDRC, Ministry of Finance, Ministry of Natural Resources, and General Administration of Customs — jointly issued the National Nanfan Silicon Valley Construction Plan (2023–2030). This gives the initiative four official designations:

• National-level seed industry innovation base
• New engine for high-quality seed industry development
• International platform for seed science and technology cooperation
• Pilot zone for deepening reform and opening up in the seed industry

The plan sets two milestone targets: by 2025, establishment as a national-level innovation base with significantly enhanced international influence; by 2030, full realisation as a nationally-serving Nanfan Silicon Valley.

Research Infrastructure — What Has Been Built

The scale of investment in research infrastructure since 2020 has been substantial.

Yazhou Bay National Laboratory is the centrepiece — a state-level strategic science and technology facility focused on crop breeding. It has established 10 academician workstations, attracted 25 research institutes, and assembled more than 2,000 high-level talent in the Nanfan field. In 2024 it launched "Fengdeng," China's first large language model for the seed industry, followed in 2025 by specialised models for rice breeding and genomics. In December 2024 it established the Yazhou Bay Biobreeding Consortium together with 20 innovation entities including China Seed Group.

Major platforms now operational include the National Nanfan Crop Phenotype Research Facility, the National Wild Rice Germplasm Resource Garden (preserving over 10,000 wild rice accessions), the National Salt-Alkali Tolerant Rice Technology Innovation Centre in Sanya, the Tropical Crop Biobreeding National Key Laboratory, and the Key Laboratory for Gene Editing Innovation and Application. A Sanya electron accelerator mutagenesis breeding laboratory has cut new variety selection cycles from 5–7 years to 2–3 years.

Twenty-one agricultural research institutes and universities have established a presence in Sanya Yazhou Bay Science and Technology City, including the Chinese Academy of Agricultural Sciences and China Agricultural University.

Industry Scale — Current Numbers

The commercial seed industry around the Nanfan base has grown rapidly:

• Over 2,800 seed innovation enterprises are now based in Yazhou Bay Science and Technology City
• 2024 Nanfan seed industry output exceeded RMB 12 billion, up 50% year-on-year
• Output grew a further 11% in 2025
• 9 of China's top 20 seed companies have established a presence
• In December 2025 the Yazhou Bay Modern Seed Industry Cluster was formally recognised as one of Hainan's first RMB 10 billion-level priority industrial clusters

International companies are now present. France's Limagrain — one of the world's largest seed groups — established a presence in 2025. Corteva (US) is also represented. The customs closure is expected to accelerate further international investment.

A notable new service model has emerged: seed Contract Research Organisations (CROs), providing purity identification, DNA extraction and variety testing services to research units. Twenty seed CRO service institutions have been formally recognised, with 16 CRO service platforms and over 60 CRO service providers now operating in Sanya.

Recent Scientific Breakthroughs

Several results from Nanfan-based research are worth noting for context:

Salt-alkali tolerant soybean varieties developed at Yazhou Bay Laboratory are averaging over 300 kg per mu — significantly above China's national average of 150 kg and the US average of 225 kg. Salt-alkali tolerant rice trials have reached peak yields of 327.2 kg per mu, a 64% increase over controls under 5‰ saline conditions. Maize single-haploid breeding technology developed here has been adopted across China's major maize breeding institutions and extended to over 10 other crops. An AI-powered smart breeding platform developed jointly by the Chinese Academy of Agricultural Sciences and Alibaba is now operational.

The Regulatory Framework — Key 2025 Changes

This is where the most significant changes for foreign businesses and researchers have occurred.

Seed Import and Export Management Regulations for the Hainan FTP Passed by the Hainan Provincial People's Congress Standing Committee on 28 December 2024, in force from 1 January 2025.

The headline change: Hainan has become the first province in China to take over approval authority for seed imports and the introduction of livestock genetic resources from overseas — previously handled centrally by the Ministry of Agriculture and Rural Affairs. Key provisions:

• Seed import approvals must be issued within 18 working days
• Production and operating licences issued within 15 working days
• Imported seeds are restricted to use within the FTP (they cannot be distributed to the mainland without further approvals)
• A dedicated green customs channel has been established for seed materials

Seed Import and Export Production and Operating Licence Management Measures (Revised Edition) Issued by the Hainan Provincial Government Office (琼府办〔2025〕37号), in force from 8 September 2025.

Key simplifications:

• Registration location restrictions removed — businesses no longer need to be registered locally to apply
• Office space area requirements eliminated
• Leased premises now acceptable for licence conditions
• Approval time limit: 10 working days
• Import approval timelines cut by more than 50% compared to previous rules

Customs Facilitation Measures Haikou Customs has introduced five nationally pioneering facilitation measures for seed and germplasm materials, including cross-customs-district conditional release for incoming seedlings and exemption from port quarantine sampling for certain seed types. Seedling survival rates have improved to above 95% as a result.

In April 2025 the Global Animal and Plant Germplasm Resources Introduction and Transit Base Service Centre officially opened, providing a cross-department single-window service for germplasm imports. This has been recognised as one of Hainan FTP's 22nd batch of institutional innovation cases.

Key Investment and Research Locations

The main hubs for seed industry activity in Hainan are:

Sanya Yazhou Bay Science and Technology City — the primary hub, home to Yazhou Bay National Laboratory, the majority of research institutes, and the largest concentration of seed enterprises. This is where most international companies have established their Hainan presence.

Nanfan Technology City (Sanya) — the commercial and IP trading component of the ecosystem.

An Ma Yang, Lingshui — part of the core breeding reserve area.

Bao Kong Yang, Ledong — part of the core breeding reserve area.

Global Animal and Plant Germplasm Resources Introduction and Transit Base — the designated international germplasm entry point, handling the quarantine, temporary storage and distribution of imported genetic material.

What This Means for Foreign Businesses and Researchers

The combination of the customs closure, devolved approval authority, and streamlined licensing creates a meaningfully different operating environment from 2020. Foreign seed companies, plant breeders, and agricultural research institutions now have a clearer and faster pathway to conduct research and establish commercial operations in Hainan than anywhere else in China.

The restrictions to note: imported seeds and germplasm remain restricted to use within the FTP unless further mainland approvals are obtained. The 60% revenue threshold and substantive operations requirements for CIT incentives apply equally to seed industry enterprises. Intellectual property protections have been strengthened — Hainan has an established IP court and a dedicated seed industry IP special zone — but enforcement should be verified with qualified legal counsel before transferring proprietary germplasm.

The seed industry also sits squarely within the Encouraged Industries Catalogue (2024 Edition), qualifying enterprises for the 15% CIT rate and zero-tariff treatment on processed goods entering the mainland.

This post is for informational purposes only and does not constitute legal, regulatory or investment advice. Verify all regulatory details with the relevant authorities before making business decisions.

Last updated: August 2025 Valid through: 31 December 2027

Overview

The Hainan Free Trade Port offers three corporate income tax (CIT) incentives for qualifying enterprises. All three remain in force through 31 December 2027.

Incentive 1 — Reduced 15% CIT Rate (Encouraged Industries)

Enterprises registered in the Hainan FTP and engaged in substantive operations in encouraged industries pay CIT at 15%, versus the standard 25% rate.

Who qualifies?

• Resident enterprises registered in the FTP
• Branches of resident enterprises located within the FTP
• Institutions and establishments of non-resident enterprises located within the FTP

Your primary business must fall within the FTP Encouraged Industries Catalogue, and income from that primary business must account for at least 60% of your total revenue.

What counts as "substantive operations"?

The enterprise must exercise real management and control, covering production, personnel, accounts, and assets, within the FTP. Specifically:

• If your enterprise is registered in the FTP with no branches outside it, all production, operations, personnel, accounting, and assets must be located within the FTP.
• If your enterprise is registered in the FTP but has branches outside it, the head office must exercise substantial and comprehensive management and control over all branch operations.
• If your enterprise is registered outside the FTP but has a branch inside it, that branch must have genuine production and operational functions, with corresponding operating income, employee compensation, and total assets within the FTP.

Any enterprise where production, operations, personnel, accounting, or assets are entirely outside the FTP does not qualify.

Do branches qualify for the 15% rate?

• Enterprise headquartered inside the FTP: 15% applies to the head office and any FTP-based branches only. Branches outside the FTP are excluded.
• Enterprise headquartered outside the FTP: 15% applies only to qualifying FTP-based branches. The head office and non-FTP branches are excluded.

How to claim

This incentive uses a self-assessment model — enterprises determine eligibility themselves, declare accordingly, and retain supporting documentation. It can be claimed at both quarterly prepayment and annual settlement stages.

Retain the following documents:

• Evidence that your primary business falls within the Encouraged Industries Catalogue, and that this business accounts for 60%+ of total revenue
• Evidence of substantive operations: total assets, total revenue, total employees, total salary expenses, and the proportion of each held within the FTP
• Any other materials confirming eligibility

Incentive 2 — CIT Exemption on Overseas Direct Investment Income (Tourism, Modern Services, High-Tech)

Enterprises in the tourism, modern services, and high-tech industries are exempt from CIT on income derived from new overseas direct investments made between 1 January 2020 and 31 December 2027.

What income qualifies?

• Operating profits from newly established overseas branches
• Dividends from newly established overseas subsidiaries where the FTP enterprise holds 20% or more equity

One additional condition: the statutory CIT rate in the invested country or region must be at least 5%.

What counts as "new overseas direct investment"?

• Establishing new overseas branches
• Setting up new overseas companies
• Increasing capital in existing overseas enterprises
• Acquiring equity in overseas enterprises

All investments must have been made between 1 January 2020 and 31 December 2027.

How to claim

Claimed at annual settlement stage. Retain the following:

• Evidence that your enterprise falls within tourism, modern services, or high-tech industries
• Details of the qualifying overseas investment: registration or approval documents, investment date, income type, and income attribution period
• Any other materials confirming eligibility

Incentive 3 — One-Off Deduction or Accelerated Depreciation/Amortisation on Newly Purchased Assets

FTP enterprises can accelerate the tax treatment of newly purchased fixed assets and intangible assets.

The two tiers:

• Unit value ≤ RMB 5 million: The full cost may be deducted in the current year as a one-off expense. Annual depreciation or amortisation is not required.
• Unit value > RMB 5 million: The enterprise may shorten the depreciation or amortisation period, or adopt an accelerated depreciation or amortisation method.

Note: "Fixed assets" here refers to fixed assets other than buildings and structures. For intangible assets, the deduction or accelerated amortisation begins in the year the asset becomes available for use. For self-developed intangible assets, the relevant date is when the asset reaches its intended purpose.

How to claim

Can be claimed at both quarterly prepayment and annual settlement stages. Retain the following:

• Proof of asset acquisition date (invoices, delivery records, completion settlement statements, or for self-developed assets, a statement confirming the date the asset reached its intended purpose)
• Accounting records for the relevant assets
• A reconciliation ledger showing the difference between tax treatment and accounting treatment

Note: Second-tier branches within the FTP using the audited collection method, and non-resident enterprise institutions/establishments, are also eligible for this incentive.

What this means in practice

These three incentives form the core of the FTP's corporate tax offer. The 15% rate is the headline figure, but the overseas investment exemption and accelerated depreciation rules are often more valuable for businesses actively investing and expanding. All three were extended in early 2025 and local implementation guidance was confirmed by the Hainan Tax Bureau in August 2025 — the mechanics are unchanged from the original framework.

The documentation requirements are strict and non-negotiable — tax authorities expect these records to be retained and available on request. Self-assessment means the burden of proof sits entirely with the enterprise.

This post is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional for guidance specific to your situation.

Last updated: September 2025 Valid through: 31 December 2027

Overview

The Hainan Free Trade Port caps the effective personal income tax (PIT) burden at 15% for qualifying high-end and in-demand talents. Any PIT liability above 15% of taxable income is waived. China's standard PIT rates run from 3% to 45% for employment income, making this one of the most competitive talent tax incentives in Asia.

The original 2020 policy was extended in January 2025 through to 31 December 2027. The extension was accompanied by a revised talent list management system (August 2025) and detailed implementation rules from five provincial departments (September 2025).

Who Qualifies?

There are two qualifying categories.

Category 1 — High-End Talents

You qualify if you meet all three of the following:

• You are recognised as a talent by a talent management authority at any level in Hainan Province, or your income from work in the FTP exceeds RMB 300,000 in a tax year
• You are employed by an enterprise registered and substantively operating in the Hainan FTP, under a labour contract or employment agreement of at least one year
• You meet the residency requirement (see below)

Category 2 — In-Demand Talents

You qualify if your field of expertise falls within the Catalogue of In-Demand Talents for Hainan FTP Industries, and you meet the same employment and residency conditions as above.

The Residency Requirement — Important 2025 Update

This is where the rules changed significantly in 2025 and where you need to pay close attention.

General rule: You must have accumulated at least 183 days of residence in the Hainan FTP within the tax year.

How 183 days is now calculated (new from 2025):

Under the old rules (2022), 183 days meant 183 days of actual physical presence on the island. In practice this was difficult for executives, sales staff, and project personnel who needed to travel frequently.

Under the new rules (effective 1 January 2025), the 183-day count can include reasonable off-island days for business travel, holidays, and training — provided your actual physical presence is at least 90 days. This is not a reduction of the threshold to 90 days — the 183-day total requirement remains. What changes is that reasonable off-island time can count toward it, subject to a hard floor of 90 days actual presence.

To count off-island days, you must have legitimate reasons, proper approval from your employer, and complete records of your movements in and out of the island.

Both arrival and departure days count as one full day each. Multiple trips within the year are aggregated.

Special rule for certain industries:

Professionals in aviation and aerospace, shipping, and offshore oil and gas exploration often cannot meet even the 90-day actual residence floor due to the nature of their work. A separate pathway exists for these individuals: they do not need to meet the residency requirement, but must instead pay basic pension insurance continuously for at least six months in the tax year (including December), hold a labour contract of at least one year with a qualifying FTP enterprise, and obtain formal recognition from Hainan's human resources and social security authority by submitting an application through their employer before 1 March each year.

⚠️ Caveat on the list-based system: Official guidance states that eligible talents are identified automatically through data sharing between government departments — talent recognition authorities push names to the provincial human resources authority, and individuals with annual income above RMB 300,000 are identified through tax records. In principle, no individual application for talent identification is required. However, implementation of this system has evolved over time and the 2025 rules introduce new steps — particularly for those whose actual residence is between 90 and 182 days, who must submit supporting materials and an individual declaration through the provincial government service platform by 30 June each year. If you believe you qualify, do not assume you are automatically on the list — verify your status through official channels and retain all relevant documentation.

What Income Is Covered?

The 15% cap applies to the following income types derived from the Hainan FTP:

Comprehensive income — wages and salaries from FTP employment, remuneration for labour services performed in the FTP, author's remuneration from works published in the FTP, and royalties from intellectual property rights exercised in the FTP.

Business income from production or business operations carried out in the FTP.

Talent subsidy income recognised by Hainan Province — where subsidy income relates to employment it is treated as comprehensive income; where it relates to business operations it is treated as business income.

How the Tax Reduction Is Calculated

The incentive works by calculating what you would owe under standard national rates, then waiving the portion above 15% of your taxable income. The tax authority system calculates this automatically when you file your annual settlement — you do not need to calculate it manually.

For reference, the formulas are:

For resident individuals — comprehensive income: Reduction = (Tax payable on comprehensive income − Taxable comprehensive income × 15%) × Hainan-sourced comprehensive income ÷ Total comprehensive income

For resident individuals — business income: Reduction = (Tax payable on business income − Taxable business income × 15%) × Hainan taxable business income ÷ Total taxable business income

For non-resident individuals — wages and salaries: Reduction = (Tax payable on wages/salaries − Taxable wages/salaries × 15%) × Hainan wages/salaries ÷ Total wages/salaries

For non-resident individuals — labour services, author's remuneration, royalties: Reduction = Hainan tax payable − Hainan taxable income × 15%

In practice: when filing your annual PIT settlement through the Personal Income Tax app or the Natural Person Electronic Tax Bureau, select Hainan Province as your filing location and the system will apply the reduction automatically.

How to Claim

The incentive is claimed at annual PIT settlement, not at source. Key deadlines:

• Business income settlement: 1 January to 31 March of the following year
• Comprehensive income settlement: 1 March to 30 June of the following year

Non-resident individuals who cannot enter China may authorise an agent to file on their behalf, or apply for advance eligibility recognition at least 30 days before departing China.

Compliance and Documentation

Your employer must be substantively operating in the Hainan FTP — shell companies cannot be used to access this incentive, and the 2025 rules explicitly require that business activity matches the scale of the benefit being claimed.

Retain the following for five years:

• Labour contract or employment agreement of at least one year with your FTP-registered employer
• Records of your days in and out of the island if claiming off-island days toward the 183-day count — including employer approval records and travel documentation
• Any talent recognition certificates or income verification materials

Providing false information, abusing the incentive, or failing compliance checks will result in the benefit being cancelled for the relevant year, back-taxes and surcharges being levied, and in serious cases referral to a multi-department credit penalty system.

How to Get Help

• Hainan provincial services hotline: 0898-12345
• National tax services hotline (Hainan): 0898-12366
• Personal Income Tax app — annual filing and automatic calculation
• "Hainan Taxation" official WeChat account

Looking Ahead — Post-Customs Closure

Hainan completed its island-wide customs closure in late 2025. The current policy runs to end of 2027, which aligns with the post-closure transition period. The longer-term direction, signalled in the Hainan FTP Master Plan, is to move toward a three-bracket progressive rate of 3%, 10%, and 15% applying to all individuals resident in the FTP for 183 days or more — expanding well beyond the current high-end talent focus. No timeline for this has been confirmed.

This post is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional for guidance specific to your situation.

Hainan FTP Encouraged Industries Catalogue — Complete Guide (Current Edition)

Last updated: April 2026 Core catalogue in force: 1 March 2024 Foreign investment catalogue update in force: 1 February 2026

Why This Catalogue Matters

The Encouraged Industries Catalogue is the gateway to two of the Hainan FTP's most significant incentives:

• The 15% corporate income tax rate (versus the standard 25%) — only available to enterprises whose primary business falls within the catalogue, and where that business accounts for at least 60% of total revenue
• Zero-tariff treatment on processed goods entering the Chinese mainland — where goods are produced by encouraged industry enterprises and either contain no imported materials, or where imported materials have been processed to add at least 30% value within the FTP

Getting catalogue classification right is not optional — it is the foundation of your entire tax position in Hainan.

The Current Framework — Two Complementary Catalogues

There is no single "2025 Edition" catalogue. The current system consists of two documents that work together:

For all enterprises (domestic and foreign-invested): The Hainan FTP Encouraged Industries Catalogue (2024 Edition), issued jointly by the National Development and Reform Commission, Ministry of Finance, and State Taxation Administration. In force from 1 March 2024. This replaced the 2020 Edition, which expired on 31 December 2024.

For foreign-invested enterprises specifically: The Catalogue of Encouraged Industries for Foreign Investment (2025 Edition) — Hainan Province Section, issued by the NDRC and Ministry of Commerce. In force from 1 February 2026. This replaced the 2022 Edition. Foreign-invested enterprises use this alongside the 2024 Edition.

Structure of the 2024 Edition

The catalogue has two parts:

Part 1 — National Catalogues: Encouraged industries listed in the national Catalogue for Guiding Industry Restructuring and the national Catalogue of Encouraged Industries for Foreign Investment. The most current versions of those national catalogues apply automatically.

Part 2 — Hainan-Specific Additions: 14 industry categories, 176 items. This is expanded from 143 items in the 2020 Edition — a net addition of 33 items, concentrated in cultural tourism, new energy, pharmaceuticals and healthcare, aerospace, and ecological protection.

The 176 Hainan-Specific Items (2024 Edition)

Items marked (New) were added in the 2024 Edition. Items marked (Expanded) were broadened from the 2020 Edition.

1. Agriculture, Forestry, Animal Husbandry and Fishery (4 items)

1. Construction and operation of aquatic product quality assurance systems
2. Construction of tropical economic forest bases
3. Protection and sustainable utilization of animal and plant medicinal materials (excluding items in the restricted or eliminated categories of the national restructuring guidance catalogue)
4. Agri-solar complementary and agro-industrial integrated development (New)

2. Manufacturing (43 items) 5. Demonstration application of deep-sea aquaculture, processing industries and equipment 6. Processing of deep-sea fish oil, protein powder, chitin and other aquatic products 7. Deep processing of imported foods including beef and mutton, milk, frozen products and edible bird's nests 8. Deep processing of tropical agricultural and forestry products 9. Production of pharmaceuticals and green building materials, and deep processing of imported agricultural and forestry products (excluding items subject to national quota management) 10. Machine-made sand production (integrated stone-to-sand production of 1 million cubic metres or more annually, using waste rock, tailings or construction waste encouraged) 11. Research, development, manufacturing, maintenance and repair of yachts and cruise ships, and development and construction of new energy and clean energy vessels 12. Modulation and application of low-sulphur oil and biomass oil 13. Research, development and application of biomass materials 14. Deep processing of organic chemical raw materials (excluding restricted and eliminated categories) 15. Development and production of cosmetics (mercury content not exceeding one part per million) 16. Manufacturing of special-purpose vehicles (excluding restricted and eliminated categories) 17. Manufacturing of general equipment for new energy production vehicles 18. Manufacturing of off-road recreational vehicles and components (new energy) 19. Manufacturing of motorcycles and key components 20. Research, development and production of teaching aids and instruments 21. Research, development and production of protective and environmentally friendly building and marine coatings 22. Research, development and manufacturing of marine renewable energy equipment (New) 23. Research and application of aerospace food, aerospace biomedicine and aerospace medicine (New) 24. Research, development and application of deep-sea search and rescue equipment and technology (New) 25. Research, development and manufacturing of special dry-type transformers, reactors, converters, reactive power compensation equipment, and ultrafiltration membrane water purification equipment 26. Design, processing and production of traditional handicrafts 27. Research, development and production of medical instruments and devices with independent intellectual property rights 28. Research, development and production of medical devices and emergency medical protective supplies (excluding restricted and eliminated categories) (New) 29. Manufacturing of precision mechanical watches, mechanical clocks and components, and smart watches and components 30. Processing of precious jade and mosaic manufacturing of jewellery 31. Research, development, manufacturing, inspection, maintenance and supporting industries for offshore oil exploration and production equipment 32. Research, development, manufacturing, maintenance and operational services for aviation aircraft, engines and airborne products, plus aircraft modification, disassembly and remanufacturing (Expanded) 33. Research, development, manufacturing and maintenance of space transportation systems, spacecraft and ground facilities, and exploration and application of space resources (Expanded) 34. Research, development and production of special foods (infant formula, health foods, foods for special medical purposes) (New) 35. Research, development and production of generic pharmaceuticals (excluding restricted and eliminated categories) (New) 36. Production and operations by marketing authorisation holders and medical device registrants (New) 37. Manufacturing of advanced pharmaceutical and biological preparation equipment (New) 38. Research, development and manufacturing of offshore wind turbines of 8MW and above (New) 39. Operation and maintenance of offshore wind power generation (New) 40. Research, development and manufacturing of new energy storage technology and equipment (New) 41. Production and manufacturing of general components for vehicles, vessels and engineering machinery (excluding restricted and eliminated categories) (New) 42. Manufacturing of diving and salvage equipment (New) 43. Research, development and manufacturing of child safety seats (New) 44. Manufacturing of intelligent manufacturing instruments, electrical wire and cable, optical cable and electrical equipment (excluding restricted and eliminated categories) (New) 45. Research, development and manufacturing of optoelectronic technology and products including optical fibre preforms, LEDs, optical fibre and connectors (New) 46. Research, development of cascade utilisation products and technology for new energy vehicle power batteries (New) 47. Development and production of beverages, and comprehensive utilisation of fruit residue, tea residue, coffee grounds and similar materials (excluding restricted and eliminated categories) (New)

3. Construction (9 items) 48. Construction and maintenance of ports 49. Construction and maintenance of coastal deep-water channels, breakwaters and inland waterways 50. River, lake and reservoir water system connectivity and rural water system remediation 51. Operation and maintenance of space launch facilities (New) 52. Construction and maintenance of coastal public anchorages 53. Construction of biodiversity conservation projects 54. Construction of outdoor sports infrastructure including sports craft wharves 55. Research, development, production and demonstration of renewable energy building integration 56. Offshore oil and gas projects

4. Wholesale and Retail (8 items) 57. Construction of agricultural and forestry product trade and marketing centres 58. Operation and digital transformation of brand experience stores, shopping centres, chain supermarkets, chain convenience stores, smart stores, theme malls, community commerce, large wholesale markets and professional commodity wholesale markets (Expanded) 59. Series of services for agricultural and forestry products entering supermarkets 60. Bulk commodity trade (excluding items subject to national quota management) 61. Trade brokerage, agency and services 62. New offshore international trade (technology-advanced service type) (Revised) 63. International seed trade 64. Construction and operation of auction companies

5. Transport, Warehousing and Postal Services (18 items) 65. Road passenger transport, cruise, yacht and pleasure-boat industries and services 66. Railway passenger and cargo transport, rail-water combined transport, Yuehai ferry rail transport, and high-speed railway express delivery 67. Agricultural, forestry and fishery product, food and pharmaceutical cold chain logistics and distribution centres 68. Ship registration, management, maintenance, inspection and related services; cruise and international shipping; aircraft supply; marine fuel and LNG supply; bonded aviation fuel and bonded LNG refuelling services (Expanded) 69. Supply of special fuels and gases for aerospace use (New) 70. Water passenger and cargo transport, port handling, storage, tugboat and tally services, and cruise port and transport services 71. International non-vessel operating common carrier business 72. International courier and logistics 73. International air cargo services (New) 74. International route calling, container transit, container stuffing and less-than-container-load services 75. International aviation and aviation logistics, trading markets and derivative business 76. Short-distance general aviation transport 77. Drone logistics delivery applications 78. Research, development and operation of global consolidation and distribution systems (New) 79. International freight forwarding, ship agency, customs declaration, inspection and related agency services 80. Integrated logistics services including warehousing, transport, freight forwarding, sorting, packaging, handling, distribution, reverse logistics and information processing 81. Research, development and operation of new energy vehicle charging and battery-swap infrastructure and smart systems (New) 82. Operation of urban smart parking facilities and research, development and operation of smart parking systems (New)

6. Accommodation and Catering (3 items) 83. Hotels, featured small and medium-sized family hotels, and rural homestay 84. Development and promotion of shared residence products including timeshare, online leasing and house sharing 85. Special catering brand development and chain operation

7. Information Technology, Software and IT Services (21 items) 86. 5G and 6G technology development and commercial application 87. Research, development and application of general-purpose and high-end processors, memory, operating systems, databases and other foundational hardware and software 88. Research, development and application of software and hardware product testing and verification tools 89. Internet information services 90. Internet platforms 91. E-commerce (including cross-border e-commerce) 92. Industrial software development and application 93. Open source software communities 94. Research, development and application of quantum information technology (New) 95. Research, development and application of metaverse technology (New) 96. Research, development, testing and application of connected vehicles and autonomous driving technology 97. Digital roads and smart transport technology research and development 98. BeiDou satellite navigation applications 99. Construction and maintenance of submarine optical cables 100. Construction of online e-sports service platforms 101. Research, development and manufacturing of biochips and related data acquisition and processing equipment (New) 102. Research, development and application of network and data security technology products and services 103. Application of data asset ownership determination, registration and trading technology (New) 104. Animation and game production, distribution, trading and derivative development (New) 105. Technology research and development for satellite-based communications, navigation, positioning, mapping, meteorology, geological survey and spatial information services 106. Development of internet mapping, geographic information systems, surveying, remote sensing and navigation software, and related technical services

8. Financial Industry (8 items) 107. Financial intermediary services including personal and corporate credit investigation, credit ratings and credit enhancement 108. Financial information and data services 109. Construction of the two-way open cross-border investment and financing service system 110. Trading, financing, clearing, delivery, risk management and information services for spot commodities, insurance policies, price indices and related over-the-counter derivatives 111. Licensed micro-loan financial services for agriculture, small and micro enterprises, and individual businesses 112. Shipping-related financial services 113. Research, development, application and service output of financial technology products by institutions approved and supervised by financial regulators 114. Life insurance, reinsurance, mutual insurance, captive insurance, and insurance intermediary business

9. Leasing and Commercial Services (10 items) 115. Shipping services including arbitration, brokerage, consulting, trading, information services, marine loss adjustment, crew services, maritime training, vessel trading and ship leasing 116. Exhibition services and quality inspection and technical services 117. Trade, design and processing services for consumer goods including diamonds, jewellery and precious metal jewellery 118. Cultivation of professional social organisations and talent intermediary agencies, and small and medium-sized enterprise service system development 119. Regional headquarters of multinational companies 120. Investment, construction and operation of international exhibition facilities 121. Enterprise digital transformation services (New) 122. Service outsourcing 123. Equipment, instruments and property leasing related to offshore oil exploration, development and production 124. Language technology development and application (New)

10. Scientific Research and Technical Services (16 items) 125. Promotion and application of traditional Chinese medicine service standards and intellectual property rights 126. Seed industry inspection, quarantine and biotechnology development and regulatory system construction and operation 127. Construction of deep-sea service support bases 128. Smart ocean and marine information services (New) 129. Commercial space launch and commercial satellite measurement and control services 130. Training for aviation, aerospace and maritime personnel; aviation, aerospace and maritime science popularisation and cultural creative content (New) 131. Construction of the scientific and technological service system and science popularisation facilities 132. Construction and operation of research institutions, bases and their branches, and international scientific and technological innovation institutions 133. Construction and operation of resource libraries, scientific data centres 134. Construction of animal and plant genetic engineering and gene libraries 135. Industrial design, cultural and tourism creative design, architectural and environmental design, and digital creative design services 136. Construction of agricultural and forestry product trademarks and brands 137. International intellectual property (copyright) trade 138. Research, development and technical services related to offshore oil exploration, development and production 139. Biopharmaceutical contract research organisation services 140. Non-clinical safety evaluation services for pharmaceuticals and non-clinical research for medical devices (New)

11. Water Conservancy, Environmental and Public Facilities Management (11 items) 141. Green port construction, port LNG refuelling, shore power standards and supply system, shore power transformation and construction at ports and on vessels, clean energy technology research and application (Expanded) 142. Construction of rescue and salvage bases and rescue flight bases, rescue personnel training, and smart shipping testing and demonstration (Expanded) 143. Treatment of aquaculture wastewater (New) 144. Resource utilisation of agricultural film waste, pesticide packaging and other agricultural input waste (New) 145. Marine environment remediation, ecological restoration and ecological demonstration projects (New) 146. Research, development and industrialisation of core energy conservation and environmental protection technologies 147. Development of energy conservation and environmental protection technology and products, and related engineering, consulting and monitoring services 148. Natural gas cogeneration 149. Investment and operation of energy storage, hydrogen energy and LNG transit facilities (New) 150. Marine carbon sequestration and geological carbon sequestration projects (New) 151. Research, development and manufacturing of seawater desalination technology and equipment (New)

12. Education (3 items) 152. Higher education 153. International education 154. Vocational skills training

13. Health and Social Work (9 items) 155. High-end specialist medical care, rehabilitation and nursing services 156. Third-party medical testing and intermediary services, and medical quality and capacity evaluation 157. Application of high-end medical equipment and new pharmaceuticals 158. Traditional Chinese medicine service trade 159. Regenerative medicine services (New) 160. Research, diagnosis and prevention of tropical diseases 161. Operation of medical institutions 162. Trading platforms for green and authentic medicinal materials and characteristic health products (New) 163. Aviation medical rescue (New)

14. Cultural, Sports and Entertainment (13 items) 164. Cultural relics protection and utilisation, and cultural relics auction 165. Publishing services, and construction of publication display, trading and distribution outlets (physical bookstores) 166. International artwork display, trading and auction 167. Smart sports and e-sports 168. Cultural trade, exchange and cooperation 169. Travel agencies and tourism agency services 170. Cultural and tourism promotion and destination marketing 171. Tourism goods and souvenir development 172. Online tourism services 173. Leisure fishery 174. Performance brokerage, operation of performance venues and entertainment venues, and tourism performances 175. Traditional Chinese medicine health tourism bases, forest wellness bases, forest experience bases, national forest walkways, self-driving camps, business camps, and agricultural and forestry tourism scenic spots 176. Operation of tourism resorts, construction of scenic spots, and protection and renovation of historic and cultural districts

For Foreign-Invested Enterprises — 2025 Edition Update (in force 1 February 2026)

Foreign-invested enterprises (including Hong Kong, Macau and Taiwan-invested enterprises) use the Catalogue of Encouraged Industries for Foreign Investment (2025 Edition) — Hainan Province Section alongside the 2024 Edition above. The Hainan-specific section contains 102 items, a net increase of 30 from the 2022 Edition.

The three main areas of expansion are ecological protection (marine environment remediation, aquaculture wastewater treatment, port clean energy), advanced manufacturing (new energy vehicle batteries, marine renewable energy equipment, yacht assembly), and modern services (metaverse technology, international air cargo, global logistics systems).

Important — deleted items and transition rules:

Two categories have been removed from the foreign investment catalogue entirely: natural gas downstream chemical products, and high-end chemical materials technology research and design. One category has been narrowed: animation and game production now excludes pure animation production (动画片).

Enterprises in these categories should note the following transition:

• 2025 annual tax settlement (covering the full 2025 year): the 2022 Edition still applies. Enterprises meeting the 60% revenue threshold and substantive operations requirements can still claim the 15% CIT rate for 2025.
• From 1 January 2026 onwards: deleted categories no longer qualify as encouraged industries. Affected enterprises revert to the standard 25% CIT rate unless they qualify under other incentives.

The Three Conditions for the 15% CIT Rate

Regardless of which catalogue applies to your enterprise, you must meet all three of the following simultaneously:

1. Substantive operations in the FTP Your actual management must be located in the Hainan FTP, with real control over production, personnel, accounts and assets exercised from within the FTP. Core business decisions and financial accounting must take place in the FTP.

2. 60% revenue threshold Your primary business revenue from encouraged industry activities must account for at least 60% of total enterprise revenue. Total revenue includes sales of goods, provision of services, asset transfers, dividends and all other income types.

3. Self-assessment filing No advance approval or registration is required. Enterprises self-assess eligibility, declare accordingly, and retain supporting documentation. The incentive can be claimed at quarterly prepayment and annual settlement stages. All supporting materials — primary business evidence, revenue breakdowns, substantive operations documentation — must be retained for 10 years.

How to Determine if Your Business Qualifies

The Hainan Provincial Development and Reform Commission published a Classification Guidance document in July 2024 explaining the criteria for all 176 items in detail. This is available for download from the provincial DRC website (plan.hainan.gov.cn) under the "Encouraged Industries" section.

If you cannot determine your classification independently, contact the provincial tax authority at the Hainan Provincial Tax Bureau, 10 Longkun North Road, Haikou, or call the 12366 tax services hotline. Where classification is disputed, the provincial tax authority refers the question to the DRC for a formal opinion. Enterprises may request a review of any classification decision.

What this means in practice

The expansion from 143 to 176 items in the 2024 Edition meaningfully broadens eligibility — particularly for businesses in new energy, aerospace, medical devices, smart logistics, and digital services. If your business was borderline under the 2020 Edition, it is worth reassessing against the current list. The addition of items like metaverse technology, drone logistics, smart parking, language technology, and data asset trading reflects the FTP's ambition to attract genuinely new-economy businesses rather than simply replicating existing free trade zone models elsewhere in China.

This post is for informational purposes only and does not constitute tax or legal advice. Classification decisions should be verified with the relevant authorities or a qualified adviser.

Hainan Unveils 15th Five-Year Blueprint to Deepen Free Trade Port and Shape “Beautiful, Smart and Safe Hainan”

Source: 《中共海南省委关于制定国民经济和社会发展第十五个五年规划的建议》, adopted by the 8th Plenary Session of the 8th CPC Hainan Provincial Committee on 30 November 2025.

Reference: (BJD News)

On 10 December, Hainan released the provincial Party committee’s proposal for the 15th Five-Year Plan for economic and social development, setting out a 2026–2030 roadmap for the island’s free trade port after customs closure. The document, adopted at the 8th Plenary Session of the 8th CPC Hainan Provincial Committee on 30 November, defines the coming five years as a “critical period” both for Chinese-style modernisation in Hainan and for building a high-standard free trade port.

From pilot phase to system building

During the 14th Five-Year period, Hainan completed most of the “front-loaded” policy work for the free trade port: three “zero-tariff” lists, (Self-use Production Equipment, Raw Materials and Auxiliary Materials and Operational Transport Vehicles, Vessels, Yachts, and Eligible Imports for Residents (e.g. Duty-free goods / consumer goods for island residents)), preferential 15% income-tax policies, a cross-border services negative list, visa-free entry policies for eligible countries under Hainan’s FTP regime, and the EF multi-functional free-trade account system. The proposal argues that these measures, combined with rapid growth in trade, foreign investment and tourism, have laid the groundwork for island-wide customs closure and more ambitious institutional opening.

Looking ahead, the 15th Five-Year period is framed as a bridge between initial set-up and a more mature system by 2035. The plan aims to complete and refine the free trade port’s policy architecture while maintaining a firm security baseline in areas ranging from finance and cross-border capital flows to data, public health and the environment.

Guiding principles and targets

The proposal follows the national template: Xi Jinping Thought provides the overall ideological framework; the “new development philosophy” and high-quality development remain the central themes; and the “Three Zones and One Centre” positioning, national ecological civilisation pilot zone, international tourism consumption centre, national strategic service and logistics zone, and international education innovation island, continues to guide sectoral policy.

The targets are qualitative rather than numerical at this stage. By 2030, Hainan aims to have:

1. a more complete free trade port with higher levels of trade and investment liberalisation;
2. a Hainan-style modern industrial system with stronger innovation capacity;
3. more balanced regional and urban-rural development;
4. leading ecological quality and a green, low-carbon growth model; and
5. higher standards of public services, social security and safety.

Industry upgrade around Hainan’s comparative advantages

Industrial policy is the heart of the blueprint. Part Four focuses on building a modern industrial system with Hainan characteristics and advantages. The four existing pillar industries, tourism, modern services, high-tech industries and tropical efficient agriculture, remain central, but the document pushes them towards higher value-added, greener and more digital forms.

Tourism is expected to evolve from traditional sightseeing into a portfolio of marine tourism, cultural and sports tourism, healthcare and wellness, and integrated “transport + tourism”, backed by stronger international marketing and upgraded tourism infrastructure.

High-tech priorities include petrochemical new materials, biomedicine, high-end consumer goods processing and maintenance-and-remanufacturing services for aircraft, automobiles and machinery. Hainan also wants to turn its “five directions to strength”, seeds, the ocean, aerospace, green industries and digital industries, into full industrial chains, while seeding future industries such as biomanufacturing, hydrogen and brain–computer interfaces and embodied intelligence.

Demand, consumption and the international tourism consumption centre

On the demand side, Part Five calls for “comprehensively expanding effective demand”. The province will continue to lean on its role as an international tourism consumption centre, promoting higher-quality tourism products and consumption scenarios and making “come to Hainan to spend” a recognised international brand. The familiar “three consumption articles” reappear: duty-free and related formats (“buy global goods”), the Boao Lecheng International Medical Tourism Pilot Zone (“enjoy global healthcare”), and an expanding international education offer (“study global specialisations”).

Alongside consumption, the document seeks to expand effective investment in key free trade port projects and aligns Hainan more tightly with the national unified market by removing market-entry and procurement barriers.

Talent, innovation and reform

A full section is devoted to “building an island of talent and an island of technological innovation”. Hainan plans a new “Million Talents Revitalise Hainan” initiative, more flexible evaluation systems and incentives, and a more open regime for international talent, while upgrading its network of labs and innovation platforms in seeds, deep sea and aerospace. The intent is to create a virtuous circle in which enterprises drive R&D and industrial transformation, supported by finance and global collaboration.

Reform remains a core theme. Part Seven commits to further SOE reform, implementation of the Private Economy Promotion Law, market-based allocation of land and other factors, deeper fiscal reform and a more predictable, rules-based environment for private and foreign investors. The familiar slogan of a “market-oriented, law-based and international business environment” is backed by measures such as “extremely streamlined approval”, more systematic evaluation of business-related policies, smarter credit-based regulation and an international service portal for businesses.

Oceans, agriculture and infrastructure

Given its geography, Hainan attaches special weight to the sea. The “maritime strong province” chapter calls for deep-sea science facilities, modern marine industries (oil and gas, marine new energy, deep-sea equipment and marine ranching) and stronger South China Sea service and rescue capacity, while maintaining strict environmental safeguards.

On land, the province intends to firm up its position as an agricultural province based on tropical agriculture and rural revitalisation. That includes high-standard farmland, better rural infrastructure and services, brand building for “Hainan Fresh” products and continued reform of rural land and collective assets.

Infrastructure plans are ambitious but explicitly framed as “moderately ahead of demand”: planning for cross-sea and rail links, ports and airports, logistics hubs, a new energy system centred on renewables with strengthened grids and storage, and a modern island-wide water network including desalination and flood-control upgrades.

Digital, ecological and social pillars

Digital transformation has its own chapter, “Smart Hainan”. The plan highlights AI as a key driver, with commitments to build a stronger digital infrastructure and computing network, deepen digital government and promote AI applications across industry, public services, governance and environmental monitoring.

Ecology remains a political red line. “Beautiful Hainan” reiterates the province’s role as a national ecological civilisation pilot zone and sets out a package of policies on pollution control, ecological zoning, environmental legislation and green transformation, including “zero-waste island” initiatives and blue-carbon projects.

On the social side, “Happy Hainan” covers employment, education, healthcare, social security, housing and demographic policy, including building an international-standard health island and strengthening long-term care and elderly services as the population ages.

Security and governance

The final chapters focus on security and governance. “Safer Hainan” applies the holistic national security concept to the free trade port, promising better mechanisms for identifying and managing risks from finance to natural disasters, cyber-security and social stability. “Uniting the whole province” stresses that Party leadership, anti-corruption work, rule-of-law construction and whole-process people’s democracy are the political foundation for delivering the plan.

For businesses and residents, the proposal signals continuity rather than sudden change: Hainan will continue to open up and invest in infrastructure, industry and services, but within a framework that puts ecological protection, risk control and Party leadership firmly at the centre.

The 15th Five-Year Period:

1. A Critical Stage for Chinese-Style Modernisation in Hainan and High-Standard Free Trade Port Construction

Reviews the main achievements of the 14th Five-Year period, including the initial free trade port (FTP) policy and legal framework, higher-level opening, industrial upgrading, better ecology and public services, stronger risk control and tighter Party leadership. It then defines the 15th Five-Year period as a bridge phase: after customs closure, Hainan faces more complex domestic and international conditions and must consolidate advantages, tackle structural weaknesses and manage higher risks while deepening reform and opening.

2. Guiding Principles and Main Objectives for the 15th Five-Year Period

Sets the guiding ideology: Xi Jinping Thought, the new development philosophy, and the “Three Zones and One Centre” positioning, with high-quality development and reform-and-opening as the core approach and Party leadership as the key guarantee. It lists basic principles (Party leadership, people-centred development, reform and opening, green development, combining market and government, and balancing development with security) and sets overall objectives: a more complete FTP institutional system, major breakthroughs in reform and opening, a Hainan-style modern industrial system and innovation capacity, more balanced regional and urban-rural development, leading ecological quality, higher living standards and stronger security.

3. High-Standard Construction of Hainan Free Trade Port

Focuses on improving the FTP policy and institutional system centred on “zero tariffs, low tax rates, simple tax system” and the “five freedoms and conveniences plus one safe and orderly flow”. It calls for higher trade and investment liberalisation and facilitation, optimised negative lists, more open migration and transport policies, stronger shipping and aviation hubs, and better mechanisms for cross-border data flows and tax policy, while also holding the security bottom line and strengthening integrated risk-prevention mechanisms for trade, investment, finance, networks, data, public health and ecology.

4. Building a Modern Industrial System with Hainan Characteristics and Advantages

Aims to consolidate and upgrade the four pillar industries (tourism, modern services, high-tech industries, tropical efficient agriculture), promote higher-end, greener and more digital development, and scale up clusters such as petrochemical new materials, biomedicine and high-end consumer goods processing.

It highlights five major industrial directions that Hainan aims to strengthen, advanced seed technologies, marine industries, aerospace and low-altitude aviation, green and low-carbon industries, and digital and data-driven industries. Alongside these pillars, the plan identifies four emerging “future industries” for strategic investment: biomanufacturing, hydrogen energy, brain–computer interface technologies and embodied artificial intelligence. It also calls for stronger financial support for the real economy and better governance and clustering of industrial parks.

5. Comprehensively Expanding Effective Demand

It treats expanding effective demand as a strategic pillar. It commits to upgrading the international tourism consumption centre and expanding the range of high-quality tourism and shopping experiences, including night-time consumption, on-demand/instant consumption, and “first-launch” consumption, where new products or services debut in Hainan before becoming available elsewhere, strictly protecting consumer rights, and deepening the “three consumption articles”: “buy global goods” (duty-free and related formats), “enjoy global healthcare” (BFA Lecheng) and “study global specialisations” (international education).

It also calls for actively expanding effective investment via major projects and reforming investment/financing, and for integrating more deeply into the national unified market by removing administrative and market barriers.

6. Building an Island of Talent and an Island of Technological Innovation

Proposes the “Million Talents Revitalise Hainan” plan to attract strategic scientists, leading tech talent and skilled professionals, and to improve training pipelines from top-level experts to young talent. It promotes more flexible talent evaluation and incentives, more open immigration and qualification recognition policies, and better talent services.

On technology, it seeks to build a multi-level innovation system with national laboratories, key labs and technology innovation centres in seeds, deep sea, aerospace and other strengths, strengthen enterprise-led R&D, link finance and technology, develop international technology markets and collaborate more closely with Belt and Road partners and global R&D institutions.

7. Further Deepening Comprehensive Reform

Positions reform as the core driver of the FTP. It emphasises energising all types of market entities, state-owned, private and smaller businesses, through continued SOE reform, optimising state capital layout, and implementing the Private Economy Promotion Law. It calls for factor-market reforms (land, natural resources, etc.), activating under-used assets, deepening fiscal and budget reforms, and building a world-class business environment that is market-oriented, law-based and international, supported by “extremely streamlined approval” and smarter, credit-based regulation.

8. Building a Strong Maritime Province

Aims to leverage Hainan’s “born of the sea” advantages to develop a deep-sea science and technology innovation hub, a modern marine industry cluster (oil and gas, marine new energy, deep-sea equipment, marine ranching, marine tourism and services), and an international cooperation highland focused on Southeast Asia and Belt and Road partners.

It also stresses building South China Sea resource-development and emergency-rescue bases and improving marine disaster early-warning and safety systems, while keeping marine ecological protection as a hard constraint.

9. Building a Strong Agricultural Province

Emphasises food and important agricultural product security, high-standard farmland and agricultural infrastructure; upgrading tropical efficient agriculture and full-chain value-addition; and building brands under the “Hainan Fresh” umbrella. It promotes modern, smart and scaled farming entities, develops e-commerce and rural tourism, improves rural living environments and integrated county-level infrastructure, and deepens rural land, collective asset, state-farm and supply-and-marketing reforms to consolidate poverty-alleviation gains and advance comprehensive rural revitalisation.

10. Building Infrastructure Ahead of Demand, in a Moderate Way

Treats infrastructure as a core support for the FTP and calls for moderately front-loaded investment. Plans include: improving cross-sea, port, rail and airport systems and logistics hubs; building a new energy system based on offshore wind, distributed solar, nuclear and gas with robust grids and storage; and creating an island-wide modern water network with improved supply, flood control and smart water management, including desalination and resilience against extreme weather.

11. Promoting Coordinated Regional Development

Calls for aligning with national regional strategies (Greater Bay Area, Beijing–Tianjin–Hebei, Yangtze River Delta, etc.) and refining Hainan’s regional layout, which is organised around three major economic growth poles, Haikou, Sanya, and the Danzhou–Yangpu cluster, supported by a coastal development belt and a central ecological conservation zone.

It aims to strengthen the roles of the Haikou, Sanya and Danzhou–Yangpu economic circles, develop key coastal cities, enhance the ecological and “four reservoir” functions of the central mountainous area, and advance people-centred new-type urbanisation, including county-based urbanisation, city renewal and “same-city” integration across the island.

12. Building a Smart Hainan

Positions digital and AI-driven transformation as a major engine. It calls for stronger digital infrastructure and computing power, integration of digital technologies with industry, public services and governance, and further development of digital government (“one-stop online services, coordinated oversight and collaboration”). It also promotes a multi-layer computing network, international data-trading platforms and broad deployment of AI in industry, culture, social governance and environmental protection.

13. Building a Beautiful Hainan

Reaffirms ecology as Hainan’s core advantage and the “background colour” of the FTP. It seeks to strengthen pollution control, water management and coastal protection; improve ecological zoning and standards; enhance environmental monitoring and enforcement; and build a low-carbon, circular “zero-waste island”, including promoting green buildings, green industry, carbon trading and blue-carbon cooperation, as well as protecting key ecosystems such as the tropical rainforest and marine habitats and applying for World Natural Heritage status.

14. Building a Culturally Strong Province

Stresses cultural confidence and the guiding role of Marxism in the ideological sphere. It calls for protecting and using Hainan’s historical, revolutionary, maritime and folk-culture resources (including figures like Su Dongpo and Hai Rui, Li brocade, Qiong opera and “San Yue San” festival), strengthening public cultural services and sports infrastructure, developing new cultural industries (games and e-sports, digital publishing, film, performing arts) and boosting international communication through an international media port and cultural trade platforms so that “Hainan stories” reach a wider global audience.

15. Building a Happy Hainan

Puts people’s wellbeing at the centre. Priorities include employment-first policies, income-distribution reform, and expanding the middle-income group; “education that satisfies the people” from preschool to higher education and vocational education; building a high-level international health island with stronger public health emergency capacity, medical alliances and integrated “three medicines” (medical care, insurance, pharmaceuticals); improving multi-pillar social security and social assistance; stabilising housing and building a new housing model; and addressing demographic issues such as fertility support, youth development and population ageing (including long-term care insurance and age-friendly infrastructure).

16. Building a Higher-Level Safe Hainan

Applies the holistic national security concept to the FTP context. It plans to strengthen national-security legal, monitoring, crisis-management and overseas-interests protection systems; strengthen security in politics, finance, real estate, local government debt, small financial institutions and new domains such as maritime and low-altitude airspace; and maintain the bottom line against systemic risk. It also aims to improve public-safety systems, disaster early-warning and emergency response, workplace, food and drug safety, social order, cyber-security and protection of minors, while deepening community-level governance, social psychological services, mediation and petition work to raise residents’ sense of safety.

17. Uniting the Whole Province to Implement the 15th Five-Year Plan

Emphasises that CPC leadership is the fundamental guarantee for the FTP and the plan. It calls for strengthening Party leadership and organisation at all levels, tightening political discipline and anti-corruption (“clean FTP”), building a high-quality professional cadre team, and developing “whole-process people’s democracy” through the people’s congress system, CPPCC consultation and broader united front and mass-organisation work. It also stresses advancing rule of law in Hainan, enhancing foreign-related legal capacity and dispute-resolution mechanisms, and fully mobilising all sectors of society to participate in and support FTP construction.