Island reaping more rewards
Consumer expo underscores Hainan’s potential in boosting trade, exchanges
As comprehensive reforms and high-level opening-up policies are put in place, China’s southern island province of Hainan is transforming into a free trade port for the world.
Last June, China released a master plan to build the island into a globally influential and high-level free trade port by the middle of the century. The China International Consumer Products Expo was the latest testament to China’s openingup commitment.
The CICPE, a new annual national level expo and the first international expo on the island, attracted 648 companies and more than 1,300 brands from 69 countries and regions. The expo, which concluded on May 10, comprised 80,000 square meters, including 60,000 sq m of international exhibition space featuring products such as cosmetics, automobiles, yachts and clothing.
The Chinese government has demonstrated an open attitude through the expo, which will greatly promote economic and trade globalization, said Kazunori Tokura, executive vicepresident of Omron Healthcare (China). He said the Hainan Free Trade Port can promote more global trade exchanges, which is of great help to accelerating the introduction of Omron’s foreign products to China.
With a total population of over 1.4 billion and more than 400 million middle-income residents, China has become the world’s most promising consumer market.
Official data shows that despite the impact of COVID-19 last year, China’s consumer products imports rose by 8.2 percent year-on-year to 1.57 trillion yuan ($241.9 billion).
Hainan could become the world’s biggest duty-free market at current growth rates, according to a KPMG/ Moodie Davitt white paper on Hainan released on May 7.
“While traditional sector hot spots saw their sales plummet, Hainan’s duty-free revenue soared to around $5 billion,” said the paper, highlighting the triumph of a pro-business, proconsumer, pro-Hainan policy.
Hainan has implemented policies such as visa-free entry, offshore duty-free shopping and a tax-exempt import list. Many exhibitors said that a series of preferential policies provided a good channel for overseas brands to enter the Chinese market.
Paolo Bazzoni, chairman of the China-Italy Chamber of Commerce, said the expo will definitely boost local consumption of quality goods while letting the world know that China is recovering from the pandemic and ready to lead quality retailing.
China’s retail sales of consumer goods — a major indicator of consumption strength — picked up further. In the first quarter, retail sales surged 33.9 percent year-on-year to 10.5 trillion yuan.
“By holding the expo, we will give further play to the policy advantages of the Hainan Free Trade Port, effectively promote the accumulation of high-end goods, capital, talent and other resources and vigorously promote the development of the services sector, such as exhibitions, modern logistics, commerce and trade, and circulation and design,” said Rong Yansong, deputy director of the Hainan provincial department of commerce.
From an underdeveloped frontier outpost before the 1980s to the country’s youngest province and largest special economic zone by 1988, Hainan is the epitome of China’s openingup. Pioneering policies facilitating free and convenient trade in goods and services are being rolled out one after another.
The island is actively improving its domestic and international connectivity. According to its government plan, the number of domestic and foreign air routes will be increased to 646 during the 2021-25 period, reaching 200 cities worldwide with a passenger throughput of 60 million.
Twenty more domestic and foreign trade routes will be opened, reaching 100 ports around the world and with a cargo throughput of 266 million tons, an increase of 20 percent during the five-year period.
After the island begins operating as a free trade port in 2025, Hainan is expected to become a mecca for global tourists, merchants and investors.
“The appeal of the expo shows the effectiveness of the opening-up policy of the Hainan Free Trade Port and the optimization of its business environment,” said Fabrice Megarbane, CEO of L’Oreal China.
“Relying on the expo to develop the tourism retail market in Hainan will further release the consumption potential of China,” Megarbane said.