Friday, March 29, 2024
28.1 C
Haikou

Bo’ao Forum for Asia (BFA) Agenda Overview

Discussions on investment, technology, and climate action at the Boao Forum for Asia 2024 Annual Conference. Agenda Overview: March 26-29

Hainan Free Trade Port Encouraged Industries Catalogue (2024 edition)

Everything you need to know about the Hainan Free Trade Port Encouraged Industries Catalogue (2024 edition)

Permanent Residence Identity Cards now Enable Simplified Business Registration...

Hainan Province pioneers using Permanent Residence Identity Cards for simplified business registration, fostering a more inviting investment climate

All tariffs removed from NZ dairy entering China from...

New Zealand said on Monday all its dairy products were now able to enter China duty-free as safeguard duties on milk powder ended on Dec. 31st
HomeBusiness NewsWill the RCEP...

Will the RCEP and Hainan’s zero tariff policy attract more international investment?

Just after midnight December 1st, the first batch of zero-tariff goods with a tariff exemption of 3.81 million yuan ($580,000) was imported into Hainan.

Download the zero tariff list here

The goods were meteorological radar transceivers declared by Hainan Airlines, meaning that the first zero-tariff list had officially taken effect in the Hainan Free Trade port.

The zero-tariff policy comes within a month of China signing the Regional Comprehensive Economic Partnership (RCEP) – the world’s biggest free trade bloc- with 10 ASEAN countries including Japan, South Korea, Australia and New Zealand.

According to Zhang Huawei, deputy Director of the Hainan Free Trade Port Office, the zero tariff policy is seen as strong motivation to attract more international investment.

It aims to attract more high-end manufacturing enterprises to invest and set-up factories in Hainan, so as to build up a modern industrial chain in the free trade port.

The Hainan Free Trade Port under RCEP

While China has 20 free trade zones, what makes Hainan different is that other free trade zones are only parts of a city or a province, but the whole of Hainan Island Province is designated entirely as a free trade port.

Hainan is over 40 times larger than Hong Kong, 30 times larger than Singapore, and 14 times the total area of all the other 20 free trade zones in China combined.

More space is seen as one of Hainan’s advantages in developing more diversified industries such as the petrochemical and service industries, digital economy and high-tech sectors.

A vital artery for trade:

As a vital artery of trade for many of the world’s largest economies it is frequently reported that $5.3 trillion worth of goods transits through the South China Sea annually.

Although this figure, it has been argued, is an overestimate, there’s no doubt that for many of the world’s largest economies, the South China Sea is an essential maritime crossroads for trade.

2016 Exports through the SCS in billions
Estimated 2016 Exports through the SCS in $billions
Source: International Monetary Fund, Department of Trade Statistics

Over 64 percent of China’s maritime trade transited the waterway in 2016, while nearly 42 percent of Japan’s maritime trade passed through the South China Sea in the same year.

With just over 14 percent of its maritime trade passing through the region, the U.S. is less reliant on the South China Sea.

The zero-tariff list includes 169 items, ranging from coconuts, coal, chemicals, to components for aircraft and ships and is seen as another step in Hainan’s trade liberalization six just months after China unveiled the development plan for the Free Trade port.

It’s not a bonded policy, but a direct zero-tariff policy

“It’s not a bonded policy, but a direct zero-tariff policy. It’s an exclusive policy in China at the moment,” Zhang Huawei, Deputy Director of Hainan Free Trade Port Office told CGTN. “Compared to the former, the latter is simpler. And it’s implemented not only within the customs regulation areas, but on the entire Hainan province, all companies are adapted to this policy.”

Xingguang-Chemical-Company
Yangpu is home to the largest refined oil depot in Asia.

Xingguang Chemical is a company located in Yangpu, a pilot area in the Free Trade Port.

Xingguang Chemical imports chemical materials and exports its products to Asian countries including Vietnam and Cambodia.

According to Kang Yunfu, Deputy General Manager, of Hainan Xingguan Chemical, “This list includes some of the raw materials we import and the products we export, so we estimate this policy will save us about 80 million Yuan a year.”

“We estimate our profit will reach 100 million yuan to 150 million per year”

Zhang Huawei, Deputy Director of Hainan Free Trade Port Office stated that “we are working on becoming a transportation hub for the RCEP.”

Related article: Haikou introduces new measures to accelerate the development of high-tech industries

Tropicalhainan.com launched it’s official mini programme and WeChat account, scan the Qr code to keep up to date with news, sports, entertainment, travel, opinion and more.

Mini programme ad for middle of articles

Latest properties for rent

Two bedroom apartment-rental lease transfer

Room 301, Building 9, Hongdao Garden, No. 352 Yehai Avenue, Chengxi Town 海南省海口市龙华区城西镇椰海大道352号港岛花园9栋301房
2
Bedrooms
1
Bathrooms
80.57 m2
Living area
¥2700

Guanhai Coffee Xixiu Beach

Sitting just a few steps away from Xixiu Beach in Haikou, Guanhai Coffee offers a nice escape for beach lovers and coffee enthusiasts alike. Its open-air setting and comfortable outdoor seating provide a nice...

Middle, primary school & Kg teachers needed – Sanya, Hainan – Aug 2024

Experience the best of both worlds - a fulfilling teaching career and an idyllic island lifestyle. Join our international school in Hainan this August...

UNIVERSITY LECTURER IN EARLY EDUCATION HAINAN

For this subject, we have several courses that require face-to-face teaching by a foreign teacher, with no more than 20 hours of teaching per...

Primary Homeroom Teacher Hainan Campus

The goal of Haidian Foreign Language Academy is to develop students that have the skills to be successful in both a Chinese and Western...

Related articles:

Bo’ao Forum for Asia (BFA) Agenda Overview

Discussions on investment, technology, and climate action at the Boao Forum for Asia 2024 Annual Conference. Agenda Overview: March 26-29

Hainan Free Trade Port Encouraged Industries Catalogue (2024 edition)

Everything you need to know about the Hainan Free Trade Port Encouraged Industries Catalogue (2024 edition)

Permanent Residence Identity Cards now Enable Simplified Business Registration for Foreign Investors in Hainan

Hainan Province pioneers using Permanent Residence Identity Cards for simplified business registration, fostering a more inviting investment climate

All tariffs removed from NZ dairy entering China from Dec 31

New Zealand said on Monday all its dairy products were now able to enter China duty-free as safeguard duties on milk powder ended on Dec. 31st

Get weekly email updates for new articles published!

Haikou
thunderstorm
28.1 ° C
28.1 °
28.1 °
78 %
4kmh
40 %
Fri
28 °
Sat
33 °
Sun
34 °
Mon
35 °
Tue
35 °

Cosy Stays Beyond the Ordinary

Relax, Unwind, and Explore Hainan's Hidden Gems

Guanhai Coffee Xixiu Beach

Sitting just a few steps away from Xixiu Beach in Haikou, Guanhai Coffee offers a nice escape for beach lovers and coffee enthusiasts alike....

Romantic Turkey Halal Restaurant

Experience the Essence of Turkey at Romantic Turkey Halal Restaurant!Step into a culinary haven where the heart of Turkey comes alive on your plate....

Iron Hand Coffee

At Iron Hand Coffee, we specialize in both specialty blends and classic black or white coffee—all at prices that won't break the bank. Our...
spot_img

Bored? Need to get out more?

Latest News ...

China-Thailand Visa Exemption Agreement Takes Effect: Visa-Free Travel for Passport Holders

China-Thailand visa pact begins Mar 1st, allowing 30-day stays for passport holders, hassle-free journeys for closer ties

Fourth China Int’l Consumer Products Expo: Latest Developments and Key Highlights

The Fourth China International Consumer Products Expo is nearing 90% completion, as thousands of exhibits from almost 50 countries and regions are confirmed for participation.

Hainan Cuts Down Payment for First Time Home Buyers

Hainan Province has moved to cut down-payment ratio for first-time homebuyers, the latest region in the country to ease mortgage policies to boost slumping home sales.

Hainan Responds to Lunar New Year Travel Surge

As Lunar New Year travel surges, Hainan grapples with congestion. Increased flights and ferry services deployed to ease stranded tourists
spot_img

Looking for an international pre-school in Haikou?

Flora's International Preschool has three preschools in the Haikou area. Our schools follow a European curriculum

Continue Reading ...

The Porch Café Friday Special; Baked Beef Chimichangas

Introducing our Baked Beef Chimichangas – a tantalizing twist on traditional comfort food that's sure to become a family favourite! Tender, seasoned beef wrapped in a warm tortilla, baked to golden perfection, and served with all your favourite toppings. With each bite, you'll experience a burst of flavour reminiscent of home-cooked goodness.

Haikou Bay Performing Arts Centre Grand Theatre March Events

This March, immerse yourself in the timeless ballet composed by Pyotr Ilyich Tchaikovsky as well as the melodies of Wolfgang Amadeus Mozart, Ludwig van Beethoven, and Dmitri Shostakovich as their music comes to life on stage ...

Artists and Craftsmen International Exhibition – February 2024

Join us for a celebration of creativity at the Artists and Craftsmen International Exhibition, taking place on February 23-25, 2024, from 16:00 to 22:00 at Le Cape Shopping Mall.

Get weekly email updates for new articles published!

Never miss another important notice or event. Be informed of what you need to know, when you need to know it.