Island sets its sights on free trade future

Sailing ahead

Hainan boasts 1,944 kilometers of coastline, 68 natural bays and more than 600 islands-providing a lucrative environment for sailing tourism.

But the policy of leveling high security deposits of 7.6 million yuan for yachts valued by customs at 20 million yuan or over has scared many tourists away.

Hainan recently became the nation's first province to introduce tariff-guarantee insurance for overseas yachts to reduce the cost of visits. Owners of foreign yachts now only need to pay about 10,000 yuan to an insurance company upon entering Hainan's territory.

Every winter, Hainan's warm climate and subtropical vegetation attract about one million "migratory birds"-retirees and skilled professionals escaping the cold weather in other parts of China.

An innovative program intended to make up for a shortage of qualified talented people sees Hainan authorities pay the skilled visitors-some of them are highly qualified academics-a modest stipend to meet their living expenses for the length of their stay.

In return, they train and educate university students majoring in key sectors such as tourism, agriculture and the service industry.

More than 1,500 experts-including scholars with national honors and teachers from abroad-have joined the program with 100,000 students benefiting, said Cao Xiankun, director of the provincial Education Department.

"The new mechanism has also led to about 100 joint scientific research projects, bringing in the latest information and high-end talent that are much needed in Hainan," she said.

Chi Fulin, president of the China (Hainan) Development and Reform Institute, said as an important "field of experiment" for the country, Hainan needs to pursue reform and innovation, especially in the fields of taxation and finance, to attract international business and allow the free flow of goods, funds and talented people.

In the past year, many major international and local companies such as PricewaterhouseCoopers, Ernst & Young, Alibaba, Tencent, China Tourism Group, Temasek, General Electric and Qualcomm, have established businesses in Hainan.

Thirty Chinese and overseas companies have taken a step further and established their headquarters on the tropical island.