China builds alternative to Singapore and Hong Kong on Hainan Island
China has launched an ambitious project to develop a unique economic zone on Hainan Island that combines the tax advantages of Singapore, the healthcare standards of Switzerland, and the visa policies of Dubai. The island is about 50 times larger than Singapore, offering vast potential for development.
Special customs regimes have been introduced across Hainan, allowing virtually duty-free import of goods from abroad and significantly expanding duty-free trade. The region benefits from reduced corporate tax rates at 15%, lower than those in Hong Kong and Singapore. Approximately 74% of global goods can be imported duty-free, and if local content reaches 30%, products can be distributed duty-free throughout China.
This "openness" experiment on Hainan could become a key hub for trade and innovation, strengthening China’s position on the global stage and potentially shifting the balance of power in the Asia-Pacific region.
