23 ASIAN LEGAL BUSINESS CHINA • 亚洲法律杂志-中国版 WWW.LEGALBUSINESSONLINE.COM/CHINA Image: DreamArchitect/Shutterstock.com Emerging as a new cornerstone of China’s institutional innovation, the “Overall Plan for the Construction of Hainan Free Trade Port (Hainan FTP)” announcement in 2020 set the stage for a series of novel policies and regulations in the island province. These measures have propelled swift advancement across diverse industries. Although the pandemic undeniably tempered overall progress, the past three years have been witnessed to significant leaps in FTP construction. Liao Hui, the director of Zhong Lun Law Firm’s Haikou office’s executive committee, shares insights with ALB, highlighting a discernible trend over recent years — the “steady increase in foreign investment activity.” Hainan has experienced an annual average foreign investment growth rate surpassing 60 percent, indicative of the region’s burgeoning openness. Amid the influx of capital, prominent investors have directed their attention to Hainan. Liao observes the establishment of regional headquarters by numerous central and state-owned enterprises, alongside the eagerness of multinational corporations to tap into the region’s opportunities. In a bid to attract more corporate headquarters, the Hainan government introduced a fresh set of measures in March. These initiatives aim to enrich Hainan’s international presence and foster the settlement and expansion of headquarters equipped with core technologies, intellectual property, or innovative business models. “With the deadline for the island’s comprehensive unveiling by the close of 2025 drawing near, and as highlevel openness commitments gradually materialize, our law firm, dedicated to serving the market economy, is poised to access amplified developmental prospects,” Liao asserts. NEW INDUSTRIES In recent years, the most conspicuous transformation in Hainan has been the ongoing evolution of new industries. Wang Shuo, a partner at DeHeng Law Offices’ Sanya office, highlights that within the framework of the FTP plan, Hainan has expedited the advancement of a contemporary industrial system propelled by tourism, modern services, high-tech sectors, and tropical agriculture. “These four primary industries currently contribute to 70 percent of the province’s GDP, which also ushers in novel requirements for legal services.” A native of Hainan, Liao possesses an intimate understanding of the regional industrial shift. He notes that since the 1990s, Hainan’s growth has been dominated by real estate and tourism, both of which have encountered multiple bubbles. “This aspect has been the most significant challenge to Hainan’s industrial progress, with shifts in leadership causing uncertainty and missed opportunities. Over the past three decades, Hainan has struggled to ascertain its distinctive industrial direction.” Consequently, he deeply values the industrial policies enacted in the past three years. “On one hand, there has been a resolute departure from real estate, coupled with the introduction of the country’s most stringent property purchase restrictions in Hainan.” Concurrently, several newly established industries have achieved notable outcomes. “Firstly, there’s dutyfree consumption, with the world’s largest duty-free mall establishing itself in Haikou. Secondly, international education has gained prominence, as Hainan FTP stands as the sole region in China where foreign institutions can establish wholly owned schools. Presently, institutions like Harrow Haikou International School and the Hainan Bielefeld University of Applied Sciences project in Yangpu are being established, attracting high-net-worth families seeking quality education.” “Thirdly, healthcare has taken center stage, with Boao Lecheng designated as the exclusive area in China allowed to import advanced medicine and medical devices from developed nations without necessitating clinical trials. This will significantly address China’s aging population challenges. REGIONAL REPORT: HAINAN LIAO HUI WANG SHUO LIN RUJIN ZHAO LIANG
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