Hainan Emerges as an Expanding Global Investment Hub
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Hainan province has seen substantial foreign investment activity and infrastructure development over the past five years, positioning itself as an increasingly attractive destination for global investors.
According to local authorities, investors from 176 countries and regions have engaged in projects across Hainan. The province has established partnerships with 39 overseas free trade zones (FTZs and ports) and now offers visa-free entry to nationals from 85 countries.
Since the start of its closed-border operational model, Hainan has designated 6,637 products outside the tax directory as zero-tariff goods, supporting cross-border trade and value-added processing within the island. The Hainan Free Trade Port Customs Smart Supervision Platform has been implemented to streamline customs procedures, support zero-tariff and processing operations, and enhance overall regulatory efficiency.
Infrastructure development is progressing rapidly. The first batch of 31 closed-border projects has been completed, alongside 8 international and 10 secondary ports, with inspection and testing systems in place. As of August 2025, 3 key tasks were completed, while 44 others are being advanced according to schedule.
Over the past five years, Hainan has attracted CNY 102.5 billion in foreign direct investment, averaging 14.6% annual growth, with over 480 EF accounts opened for cross-border financial transactions, totaling approximately CNY 1,700 billion in funds. International shipping operations are also expanding, with 66 registered international vessels and leading capacity among China's free trade ports.
Hainan's modern industrial system is accelerating, with four leading sectors—tourism, modern services, high-tech industries, and tropical agriculture—accounting for 68.6% of the province's GDP. Notably, key Free Trade Port industrial parks, occupying less than 2% of the provincial area, contribute 30% of total investment, 50% of tax revenue, 70% of imports and exports, and 90% of utilized foreign capital.
High-tech and research initiatives are progressing rapidly. The “Southern Breeding Valley” now hosts over 2,800 related enterprises in seed production, generating an output value exceeding CNY 18 billion. Phase II of the “Shenhai-1” ultra-deepwater gas field has entered full production, representing the largest offshore gas field in China to date, contributing to 13.9% average annual growth in marine GDP. Hainan's Wenchang spaceport has become China's first commercial launch facility capable of frequent, multi-type launches.
Retail and consumer markets have expanded, with total retail sales up 9.6% year-to-date (Jan–Aug 2025), exceeding the national average by 5 percentage points. Duty-free sales for island tourists surpassed CNY 250 billion, representing more than 68% of China's national duty-free market.
Hainan has also seen growth in education and healthcare sectors. The newly established Bielefeld University of Applied Sciences Hainan campus has begun enrollment, and the Boao Lecheng International Medical Tourism Pilot Zone has introduced over 500 innovative drugs and medical devices, benefiting more than 160,000 patients, with medical tourist numbers and use of licensed drugs rising 39.4% and 113.9%, respectively.
These developments indicate Hainan's increasing integration into global trade and investment networks, with growing infrastructure, regulatory support, and market opportunities appealing to international investors seeking access to the Chinese domestic market.







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