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Provinces of China: Hainan

We present a new author’s cycle of FEZ Grodnoinvest administration – Provinces of China. In the first article of the series, we will talk about one of the southernmost and most attractive tourist regions of the People's Republic of China, which is called “the Hawaii of the East” due to its picturesque beaches and mild tropical climate. Maritime logistics are actively developing here, and there are free trade zones and modern industrial complexes. We are talking about Hainan Province.

Hainan is the smallest province of the People's Republic of China, covering an area of about 34 000 km², almost entirely consisting of the island of the same name. The region's geographical location, access to the South China Sea, and proximity to China's major economic centers – Hong Kong, Macau, Guangzhou, and Shenzhen – make Hainan an important transport and logistics hub, as well as a strategic region for attracting foreign investment and developing international trade.

Interesting fact: the island was once part of the mainland, but as a result of a volcanic eruption, it separated and now moves 1 cm further away from the mainland every year. Currently, the island is separated from the mainland by a 19 km wide strait.

ECONOMICS

Over the past three decades, Hainan Province has demonstrated significant economic growth. Since the province was established as a separate administrative unit in 1988, the region has become China's largest special economic zone (SEZ), accelerating infrastructure development, increasing investment activity, and attracting foreign capital.

In 2024, Hainan's gross regional product was approximately 793 billion yuan (~$113.1 billion), a year-on-year increase of 3.7%, exceeding the national average. Per capita GRP reached about 75 900 yuan (~$10,700), an increase of 2.7% compared to the previous year.

INDUSTRY

Hainan's industry focuses on natural resource processing, food production, petrochemicals, high technology, and shipbuilding.

Petrochemical industry. Hainan has significant potential in the energy and petrochemical sectors. The province has industrial clusters that include the processing, transportation, storage, and sale of oil and natural gas. The products of petrochemical enterprises are supplied to various regions of China and exported abroad. Hainan's industrial sector is mainly concentrated in the north of the island (Haikou) and in the Yangpu area.

Production of rubber and rubber products. The region has factories producing car tires, conveyor belts, latex products, and other rubber products, which are manufactured both for domestic use and for export.

Interesting fact: Hainan Island produces the largest amount of rubber in China (2/3 of China's total production).

The main centers of rubber production are the Sanya industrial zone and the Yangpu port area. In 2025, the production of rubber and rubber products, including tires, conveyor belts, and latex products, reached about 1.2 million tons, providing exports to Southeast Asia and Europe.

The food industry is also actively developing. The main areas are the processing of coconuts, coffee, tea, tropical fruits, and seafood. Both raw materials for domestic consumption and products for export are produced, including juices, oils, dried fruits, and extracts.

Interesting fact: “Coconut” island. Hainan is the country's main coconut producer. More than 200 million coconuts are harvested here annually. The coconut palm has long been the unofficial symbol of the island.

Shipbuilding and the maritime industry are concentrated in the coastal areas of Hainan, such as Sanya and Haikou. Companies produce small and medium-sized vessels, repair yachts, and build offshore platforms.

The province's extensive coastline allows for the active development of aquaculture, fisheries, and seafood processing. Major ports – Sanya, Haikou, and Yangpu – provide both international export operations and domestic transport links.

High-tech industry and the aerospace sector are becoming priority areas for development. The province is strategically focused on the development of biomedicine, medical technology, new materials, environmentally friendly and low-carbon technologies, IT infrastructure, digital services, and aerospace projects. Special innovation zones, including the Haikou National Hi-Tech Industrial Development Zone, Yazhou Bay Science and Technology City, and IT and Internet parks in Haikou, play a key role. Since 2021, there has been steady growth in Internet companies and online services. In 2025, the region's digital economy revenues exceeded 160 billion yuan, and taxes paid by digital enterprises amounted to about 6 billion yuan.

Interesting fact: Wenchang is China’s only spaceport capable of launching new-generation rockets (Long March 5 and future super-heavy launch vehicles). It is built right by the ocean so that large rockets can be delivered by sea.

The province actively cooperates with China Aerospace Science and Technology Corporation and China Aerospace Science and Industry Corporation, as well as with the Chinese Academy of Sciences. The development of the aerospace industry is aimed at integration with the high-tech sector, the digital economy, and the region's industrial infrastructure.

The production of construction materials and equipment meets the internal needs of infrastructure projects. Enterprises produce cement, concrete, ceramics, metal structures, and specialized equipment for free trade zones and tourist complexes.

 

TRADE

In 2024, Hainan's foreign trade turnover amounted to approximately $39 billion, with exports reaching $14.9 billion and imports amounting to $24.1 billion. Compared to 2023, exports increased by 43.5% and imports grew by 8.9%, reflecting the region's steady international trade dynamics. The main export partners were Italy, Hungary, the Netherlands, and Belgium. The main supplier countries were Australia, Indonesia, South Africa, Ghana, and Oman.

Exports are based on petroleum products and high-tech goods. The main export items in 2024 were:

  • refined petroleum
  • polyacetals
  • petroleum gas
  • computers
  • semiconductor devices

Hainan's imports are mainly raw materials and high-tech components. The main import items in 2024:

  • iron ore
  • coal briquettes
  • acyclic alcohol derivatives
  • petroleum gas
  • beauty products

Hainan is actively developing domestic and international logistics, using its ports and airports to integrate with global transport networks. The ports of Haikou and Sanya serve major container lines and cruise routes, and the cargo turnover of seaports amounted to about 220 million tons in 2024. Airports, including Haikou Meilan and Sanya Phoenix, provide international and domestic flights for over 6 million passengers per year, contributing to the development of tourism, transportation of goods, and services.

Trade with foreign partners is actively supported by the preferential policy of the Hainan Free Trade Port, which was optimized and modernized in 2024. The tariff-free policy for domestic sales of processed value-added goods was extended to the entire island, with a total of 176 enterprises declared and domestic sales exceeding 2 billion yuan.

INVESTMENT ACTIVITY

Foreign investment remains one of the key drivers of economic growth. In 2024, foreign direct investment reached $48.8 billion, with Italy, Germany, Japan, and South Korea remaining the main partner countries. More than 85% of foreign investment was directed to high-tech and service industries, including finance, the digital economy, tourism, healthcare, and logistics. The number of new foreign companies registered on the island in 2024 was 2 072, which is 19.8% more than in the previous year.

Interesting fact: Hainan is currently the largest SEZ in China.

THE LARGEST COMPANIES IN HAINAN PROVINCE

  1. Sinopec Hainan Petrochemical Co., Ltd. is Hainan's largest enterprise engaged in oil refining and chemical production and is the province's revenue leader.
  2. Hainan Airlines is the island's largest airline and one of China's leading transportation companies in terms of operation scale and revenue.
  3. Hainan Yisheng Petrochemical Co., Ltd. is one of the island's leading petrochemical companies, producing a wide range of chemical products.
  4. China Hainan Rubber Industry Group Co., Ltd. is the main producer of natural rubber and a major agro-industrial player.
  5. Hainan Nanguo Foodstuff Industry Co., Ltd. is a leading producer of specialized food products on Hainan Island.
  6. Hainan Development Holding Co., Ltd. is a large state-owned holding company that manages the province's key financial, investment, and infrastructure assets.
  7. Sunshine Life Insurance Co., Ltd. is a large insurance company and one of Hainan's leading financial enterprises.
  8. Sinopec Sales Hainan Branch is a regional division of Sinopec responsible for the sale, logistics, and service of petroleum products within the province.
  9. C & D (Hainan) Co., Ltd. is a large development company implementing projects in construction, real estate, and infrastructure development on the island.

TOURISM

Tourism is a key sector in Hainan's economy. In 2024, the island welcomed over 97 million tourists, exceeding previous years' figures and demonstrating steady growth in tourist activity.

Interesting fact: Hainan is known as the “the Hawaii of the East”. It is the only tropical island in China, attracting tourists with its beaches, hot springs, and the opportunity to combine a beach vacation with a wellness retreat.

Special attention is paid to the development of yachting and cruise tourism. The cities of Sanya and Haikou have two large cruise ports with four berths capable of accommodating ships of up to 150 000 tons. The import of yachts and cruise ships is exempt from duties and taxes, and Hainan is the only province in China that allows yacht rentals.

Interesting fact: almost 80% of Hainan's territory is covered with evergreen jungle, and Hainan Island ranks second in the world after Cuba in terms of air purity.

ATTRACTIONS

  • Phoenix Island is a symbol of modern Sanya with its futuristic towers, which have earned it the nickname “Dubai of the East”. It looks especially beautiful in the evening when the skyscrapers light up with bright lights.
  • Nanshan Buddhism Cultural Park. The main attraction of the complex is the world's largest statue of the goddess Guanyin, 108 meters high, installed directly in the sea. The area is filled with temples, gardens, and ponds, creating an atmosphere of peace.
  • Glass Bridge in “Yanoda Tropical Rainforest”. A 400-meter-long suspended glass bridge runs over deep gorges and trees. Walking across it is a thrilling adventure with breathtaking views.
  • Nangwan Monkey Island. The reserve can be reached by the world's longest cable car over the sea. Thousands of monkeys live freely here and often come very close to visitors.
  • Dongtian Taoist Park. This is one of the oldest places in Hainan, known for its rock formations, caves, and Taoist temples. It is especially beautiful at sunset, when the sea and rocks are bathed in golden hues.
  • Wuzhishan Mountain. The highest point in Hainan with its characteristic “five fingers” and sacred significance for the Li people. The mountain is ideal for trekking through tropical forests and misty gorges.
  • End of the World Park. The picturesque coastline is famous for its giant boulders carved with the Chinese characters for “End of the World” and “Sea Cape”. It is especially beautiful here at sunset, when the sea and rocks shine with a golden light.

COOPERATION OF FEZ GRODNOINVEST AND HAINAN PROVINCE

The administration of FEZ Grodnoinvest is actively developing cooperation with Hainan Province of the People's Republic of China.

On April 12, 2024, as part of a delegation from the city of Grodno, the head of administration of FEZ Grodnoinvest Mr. Dmitry Rozhkov visited the Integrated Bonded Zone of the city of Haikou. The event was aimed at exchanging experience in the field of attracting investments, developing preferential territories, and improving the investment climate.  Special attention was focused on issues of logistics and tourism: the delegation visited the New Seaport of Haikou, the trade and exhibition complex of international goods and the CaiNiao warehouse logistics enterprise.

The administration of FEZ Grodnoinvest plans to implement further joint initiatives, including the exchange of experience in the management of industrial parks, the development of a resident base with Chinese capital, and the organization of business visits to study the successful practices of Hainan Province. The joint activities are aimed at expanding partnerships and increasing the investment attractiveness of both regions.

On September 25, 2024, an online meeting was held between the administration of FEZ Grodnoinvest and the Foreign Affairs Office of Hainan Province of the People's Republic of China, which resulted in the signing of a Memorandum of Understanding to strengthen cooperation between free economic zones of Belarus and China. FEZ Grodnoinvest also joined the Alliance of FEZs established under the auspices of the Asian Forum in Boao, which will open up new opportunities for joint projects.

The administration of FEZ Grodnoinvest plans to implement further joint initiatives, including the exchange of experience in managing industrial parks, developing a resident base with Chinese capital, and organizing business visits to study the successful practices of Hainan Province. The joint activities are aimed at expanding partnerships and increasing the investment attractiveness of both regions.