The island province of Hainan has seen a surge in the number of foreign invested enterprises choosing to set up shop on its shores following its designation as the site of China’s first free trade port.
In 2020 a total of 1005 new foreign-invested enterprises were established in Hainan, for a YoY rise of 197.3%.
These enterprises were launched by some of the world’s leading global companies, including Tesla, General Electric, Germany’s KWS, Hungary’s OTP Bank and French power company EDF.
Electric car maker Tesla officially opened its New Energy Vehicle Innovation Centre in the Hainan Free Trade Port in October last year, while on 15 January its Tesla Customer Centre in Haikou commenced operation.
Hainan has been a focal point for China’s development policies over the past several years, with plans to make it the site of a free trade port and trial free trade zone first unveiled by Beijing in 2018.
In June 2020 the Chinese central government released its “master plan” for the development of Hainan’s free trade port, outlining key measures including zero tariffs and low tax rates.