Hainan has taken a significant step toward becoming a biotech hub in Asia, with the registration of its first foreign-invested stem cell company. Hong Kong-based investment firm Everflourish Global Investments Limited (永昌环球投资有限公司) has established a new subsidiary, Baiwei Gene Biotechnology (Hainan) Co., Ltd., (佰唯基因生物科技（海南）有限公司) in the Haikou National High-Tech Zone.
Historical Background
In 2007, China added human stem cell research, gene diagnosis, and treatment technologies to its “Prohibited Catalogue for Foreign Investment” (《外商投资产业指导目录》), effectively banning foreign capital from entering these sectors across most of the country. This prohibition was part of broader efforts to maintain regulatory control over sensitive areas of biotechnology.
That restriction remained in place for over 15 years, until it was partially lifted in 2024 under new pilot reforms. These reforms allow foreign investment in CGT (Cell and Gene Therapy) in four designated Free Trade Zones, including Hainan, as announced by the Ministry of Commerce and other regulatory bodies in September 2024.
A New Chapter for Biotech in Hainan?
Baiwei Gene will develop a 1,500-square-meter research and production facility in Haikou, with GMP-certified labs built to international standards. The company aims to attract top talent both from within China and abroad and plans to collaborate with local universities and institutes on clinical applications for stem cell therapies.
This isn’t just another biotech startup, it’s a strategic move.
The Hainan Free Trade Port offers a unique combination of policy support, tax incentives, and logistical advantages that are increasingly attracting global investors in life sciences.
What Makes Hainan Attractive?
Speaking on the investment, Everflourish’s project lead Yao Mingkun pointed to the island’s favorable tax policies, including a 15% corporate income tax and zero tariffs on products with over 30% value added through processing.
“The Free Trade Port allows us to access China’s vast domestic market while also providing a gateway to Southeast Asia,” said Yao. “It’s a strong platform for international integration and innovation.”
These advantages align with the broader strategy of the Haikou National High-Tech Zone, which is actively promoting investment in next-generation healthcare technologies. The zone offers streamlined, “one-stop” government services for business registration, project approvals, and licensing.
Riding the Wave of Regulatory Reform
Baiwei Gene’s launch comes at a pivotal time. In late 2024, China designated Hainan as one of four pilot regions where foreign companies are now allowed to develop and apply stem cell and gene therapy technologies. These reforms represent a significant policy shift, reversing a long-standing prohibition on foreign involvement in this space.
The Boao Lecheng International Medical Tourism Pilot Zone, just a few hours from Haikou, is also accelerating innovation. It recently became the first in China to approve stem cell treatments under a special regulatory pathway that allows clinical use without going through traditional national drug approval channels.
Approved therapies now available in Boao include treatments for chronic obstructive pulmonary disease (COPD), ischemic heart disease, and knee osteoarthritis, with prices ranging from ¥36,000 to ¥150,000 per session (US$5,000–20,000). These developments show that Hainan is not just supporting research, it’s actively bringing new therapies to market.
Bigger Picture: China’s Push into Regenerative Medicine
China is rapidly scaling its investments in regenerative medicine, with more than US$3 billion allocated between 2021 and 2023. The Hainan Free Trade Port is positioned to play a leading role in this national strategy by offering policy flexibility, international access, and institutional support.
For companies like Everflourish, this creates an opportunity to bridge international capital and expertise with one of the world’s fastest-growing healthcare markets.
Officials from the Haikou National High-Tech Zone say they’re committed to supporting the entire lifecycle of foreign-invested projects, from setup to scaling. Their goal: bring in more global leaders in biotech and ensure that the infrastructure is in place to help them succeed.
With Baiwei Gene leading the way, Hainan’s emerging biotech ecosystem is beginning to take shape, backed by real policy innovation, serious capital, and a clear path to clinical and commercial impact.
Related article: Hainan’s Global Connect Pilot: Easing Internet Restrictions to Boost Free Trade Port Development
