Medical firm thrives under Hainan's tax incentives

Zeng Sheng, founder and chairman of Susheng Biotech (Hainan), said his business is thriving in Hainan province, where favorable policies and upcoming island-wide independent customs operations are creating new opportunities in the high-tech and medical industries.

Zeng, 39, is an expert in skeletal regeneration. He first visited Hainan in 2019 as a sailor in the Round Hainan Regatta. Drawn by the tropical landscape and business potential, he established his company in the Haikou National High-tech Industrial Development Zone, leveraged the area's medical manufacturing infrastructure, and recruited international returnees as core team members.

He also tapped into the Boao Lecheng International Medical Tourism Pilot Zone, where internationally approved drugs and medical devices not yet available in the Chinese mainland can be used. "Here, companies can access advanced global medicines with streamlined approvals," Zeng said. Last year, the zone expanded to allow imports of specialized medical foods and supplements.

Since launching five years ago, Zeng's company has benefited from Hainan's business-friendly policies, including an "ultra-simple approval" system - the island province's minimal approval requirements for items subject to evaluation and examination — tax incentives, and efficient financing. His firm secured a 6 million yuan ($827,000) bank loan without collateral and saved nearly 20 percent on production costs due to zero tariffs on imported medical equipment and materials for medical implants.

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

At a State Council Information Office news conference on Wednesday, officials highlighted Hainan's tax cuts, which exceeded 31 billion yuan for businesses and 17 billion yuan for individuals over the past five years. It is now preparing for island-wide independent customs operations, set to launch on Dec 18, which will reduce customs checks and tariffs for goods not bound for the Chinese mainland.

As the changes near, entrepreneurs like Zeng see even greater potential. "In Hainan, the landscape is beautiful, the policies are supportive, and the future is promising."