China’s Hainan free-trade port tipped to deepen Asean ties, but island must ‘brave’ uncertainty
- Southeast Asian firms will be incentivised to invest in Hainan, especially in the service sector, thanks to the easing of restrictions and lower taxes
- Hainan, which is being touted as an international tourism island and duty-free hub, could see a surge in travellers and exchanges with Asean nations
Hainan’s transformation into a free-trade port will open new doors for trade between China and Asean, but its success will require a leap of faith and pioneering spirit, experts said.
Seated at the southernmost tip of China, the free-trade port is well placed to strengthen ties with the Association of Southeast Asian Nations (Asean), which collectively overtook the European Union to become China’s biggest trade partner in 2020.
Asean companies will be incentivised to invest in Hainan, especially in the service sector, thanks to the easing of restrictions and tax breaks, said Shen Danyang, executive vice-governor of Hainan province, at the Boao Forum last week.
Travel between Singapore, Malaysia and Thailand used to be a popular route for Chinese tourists. Hainan, which is being touted as an international tourism island and duty-free hub, could be a part of the itinerary in the future, said Shen, adding that foreign travel agencies will be able to set up businesses on the island, which they cannot do on the mainland.
