Biz-friendly Hainan attracting top firms

Zeng Sheng, founder and chairman of Susheng Biotech (Hainan) Co and an expert in skeletal regeneration in Hainan province, first visited the island province in 2019 as a sailor competing in the Round Hainan Regatta, a world-renowned sailing event. Drawn by the tropical landscape and his love for coconuts, he later saw the island as an ideal place to conduct business.

A year after his initial visit, Zeng explored Hainan's pharmaceutical industry and chose to establish his company in the Haikou National High-tech Industrial Development Zone — one of 13 key industrial parks in Hainan Free Trade Port — recruiting overseas returnees as core team members to leverage the zone's established medical manufacturing infrastructure.

He was also attracted by the Boao Lecheng International Medical Tourism Pilot Zone, where preferential policies allow the use of overseas-approved drugs and medical devices not yet available in the Chinese mainland.

"Here, companies can access advanced global medicines with streamlined approvals," Zeng said. Last year, the zone expanded to permit imports of specialized medical foods and dietary supplements, further boosting its global appeal.

Since launching his company five years ago, Zeng has benefited from Hainan's business-friendly policies. He highlighted the government's "ultra-simple approval" system — the province's minimal approval requirements for items subject to evaluation and examination — efficient financing options, as well as tax incentives at Hainan Free Trade Port. His firm secured a 6 million yuan ($827,000) bank loan from Industrial and Commercial Bank of China Hainan provincial branch without collateral, and saved nearly 20 percent on production costs thanks to zero tariffs on imported equipment and materials for medical implants.

Hainan's favorable tax policies, including a 15 percent corporate and individual income tax rate for eligible businesses and high-end talent, have also been key. "Our costs are about 15 percent lower than competitors on the Chinese mainland," Zeng said, referring to management costs.

At a State Council Information Office news conference on Wednesday, Wang Changlin, deputy director of the National Development and Reform Commission, said Hainan's tax cuts for businesses and individuals over the past five years have exceeded 31 billion yuan and 17 billion yuan, respectively.

Feng Fei, Party secretary of Hainan, added that the province is preparing for island-wide independent Customs operations, with policies ready to further boost trade and investment.

Under the independent Customs operations, scheduled to be launched on Dec 18, goods entering or leaving the island, unless destined for any place on the Chinese mainland, will be subject to fewer Customs checks and potentially lower or no tariffs. This allows Hainan to operate as a separate Customs territory while remaining within China's sovereign borders.

As the changes approach, entrepreneurs like Zeng see growing opportunities in its high-tech and medical sectors. "In Hainan, the landscape is beautiful, the policies are supportive and the future is promising."