Trade Resources Culture & Life The Economic and Social State of Hainan Has Been Experiencing a Great Change

The Economic and Social State of Hainan Has Been Experiencing a Great Change

Speech by the Governor

Being established as a Province and a Special Economic Zone in 1988, Hainan is the youngest province and the largest Special Economic Zone in China, as well as a province rules the largest sea areas. The economic and social state of Hainan has been experiencing a great change during the 18 years' reform and development and obtained striking accomplishment. In 2006, the whole province's GNP increased 17 times compared with that of the time before the province was established. To build Hainan into an Emerging Industrial Province, a Tropical Coast Tourist and Holiday Resort and a Base for Tropical High-Efficient Agriculture, this tri-industrial structure has been formed and developed. In recent years, with a new strategy that's bringing in big companies and big programs to generate the economy', Hainan is again witnessing a new round of developing and constructing.

During the term of the 11th Five-year Plan', economic development will always be the priority of the Hainan Government. With a scientific view of development, planning and building a more dynamic system and mechanism and a economic structure featured its own will be attached great importance. We believe through adding more cutting-edges constantly, the economy will develop healthily and rapidly.

Sunshine Hainan, Immense Opportunities. With excellent ecological environment, abundant resources and the ever-forming infrastructure, we warmly welcome friends home and abroad to visit and tour, to invest and work in Hainan. Bearing the spirit of cooperation and mutual benefit, let's work hand in hand and build together a more beautiful and prosperous Hainan in the coming days!

Active Governor of People's Government of Hainan Province

Luo Baoming


(i) Geographical Location

Location and Boundary

Hainan Province is located at the southernmost tip of China. On the north it connects Guangdong Province with the Qiongzhou Straits; its western neighbour is the Beibu Gulf and it faces Viet Nam; on its eastern side it borders the South China Sea and faces Taiwan; its southeastern and southern sides face the Philippines, Brunei and Malaysia.

Hainan Province's administrative divisions include Hainan Island, the Xisha Islands, the Zhongsha islands, the Nansha Islands as well as the reef and sea areas. It is the country's largest province. The total land area of the province is 35.4 thousand square kilometers (mainly includes Hainan Island and the Xisha Islands, the Zhongsha islands and the Nansha Islands ) Hainan Island is located between 18°10′-20°10′of north latitude and 108°37′-111°03′of east longitude. The distance from the northeast end to the southwest end of the island is about 290 kilometers and the distance from the northwest end to the southeast end is about 180 kilometers. It is the second largest island in China just after Taiwan. The coastline around the island is 1,528 km long ., the sea area of the province is about two million square kilometers.

Terrain and Landform

The terrain of the island is higher in the middle and comparatively flat around the edges and in the shape of an arch.It takes Wuzhi Mountain and Yingge Mountain as the zenith and slide down to the periphery level by level. The mountains, hills, terraces and plain construct a annular landform, obviously a hierarchical structure.

The terrain of Hainan Island features mountains and hilly country that occupy 38.7% of the entire island area. The mountains mainly distributes in the middle and the southerly area of the island and are dotted with hills basins. The hilly country mainly distributes in the interior, northwest and southwest areas of the island. Around the mountainous and hills, terraces and mesas are widely distributed, accounting for 49.5% of the total area of the island. The surrounding areas of the island are coastal plains, accounting for 11.2% of the total island area.

Doing Business in Hainan Province of China:I.Survey


Most of the mountains in the island range from 500 to 800 meters above the sea level, which characterize a low hilly terrain. 81 mountain peaks are over 1,000 meters above the sea level, making it a streching and surging view above. The mountain peaks that are over 1,500 meters above sea level include Wuzhi mountain, Yingge mountain, Ezong mountain, Houmi mountain, Yajiada mountain and Diaoluo mountain etc.

River System

The terrain of the Island is higher in the middle and comparatively flat around the edges, big rivers mostly originate from the central mountainous areas, constructing a radial water system. A total of 154 rivers flow solely into the sea, in which 38 rivers are with catchment areas of more than 100 square kilometers. The Nandu river, Changhua river and Wanquan river are the main three rivers in Hainan island, with catchment areas of more than 3,000 square kilometers for each of them. These three major river basins account for 47% of the island's total area.

(ii) Climate

Yield of Solar Radiation

Hainan enjoys a tropical monsoon climate and is frost-free all year round with sufficient sunshine and precipitation. The island is wet in east and dry in west, hot in south and cold in north. With a high effective photosynthesis, the rice may have three harvest seasons a year and counter-season vegetable are available all year round. The annual mean sunshine hour is 2,166 hours for the entire island, and the figure can reach 2,650 hours in maximum for coastal western areas, and 1,750 hours in minimum for central mountainous areas.

Average Temperature

The annual average temperature of Hainan island is 22-26℃, and the temperature is lower in central areas and higher in the surrounding. Except central mountainous areas of Qiongzhong that enjoy a temperature of 22-23℃, the temperatures in the rest areas are all above 23℃. In the coldest January, most areas enjoy a temperature of over 17℃, for the southern coastal areas, the temperature reaches as high as 20 ℃.

Average Rainfall

The average rainfall of the island is 1,639 mm and a regional difference in distribution, with a feature of wet in east and dry in west. The rainfall increases along with the terrain ascension. The rich-rain center of the island is located in the eastern slope of Wuzhi mountain. Since it is situated against the wind, the rainfall are abundant, and its average annual rainfall is about 2,000-2,400 mm. For the southwest areas, as they are situated at the leeward slope and are influenced by the hot blast, the rainfall is fewer, with an annual rainfall of about 1,000-1,200 mm.

(iii) Population and Nationality

The total population of the province was 8.28 million in late 2005. Han, Li, Miao and Hui nationalities are native people of the province. The rest of the nationalities are people moved into the island, scatterring across the province. Han nationality takes 82.8% of the total population, and the minority takes 17.2%.

(iv) Infrastructure and Transportation

Airports and Ports

A total of 24 international air routes are operated by Hainan's two international airports, namely Haikou Meilan International Airport in the north and Sanya Phoenix International Airport in the south, which connect Hainan with Russia, Japan, Korea, Singapore, Thailand, Malaysia, Hongkong, Macao and other countries and regions. The entire province has 68 natural harbors, with 24 of them has been put into use. Haikou, Sanya, Basuo and Yangpu ports are the largest. The other main ports also include: Qinglan,Puqian, Xincun,Baimajing,Boao and Xinying etc. A total of 69 international trade sea routes are opened by Haikou and Sanya ports, which operate shipping business with 24 countries and regions. By the end of 2005, a total of 126 passenger and cargo transport berths are operated in the province, of which 23 are berths with a handling capacity of over 10,000 tons.


Hainan has established initially a well developed highway network, taking the freeway system as the primary skeleton, the federal highway and the provincial road as the main branch, the countryside road as the support, and the roads of export, travel and national defense as the supplement. In 2005, the province's highway mileage reached 20,900 km, of which 1,290 km are the federal highway, 1,975 km are provincial highway, 2,862 km are county roads, 14,300 km are rural roads, and 473 km are for the special-purpose.

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The Guangdong-Hainan Railway is the first cross-sea railway in China, starting from the Zhanjiang city in the north and reaching Sanya city in the south, it connects with the Xihuan railway in Hainan. The existing railway in Hainan counts to 387 kilometers in total, which connects with the national railway network in China.


By the end of 2005, the entire province has 2 policy banks—China Development Bank Hainan Branch and Agricultural Development Bank of China Hainan Branch. The number of commercial banks is 7-- the Industrial and Commercial Bank of China Hainan Branch, the Agricultural Bank of China Hainan Branch, Bank of China Hainan Branch, the China Construction Bank Hainan Branch, Bank of Communications Hainan Branch, the Haikou Branch of Shenzhen Development Bank Co.,Ltd., China Ever bright Bank Haikou Branch. There is 1 foreign capital bank in Hainan— Nanyang Commercial Bank Haikou Branch.


By the end of 2005, the province has 9 insurance subsidiary companies, which include 5 property insurance companies (1 is foreign capital company), and 4 life insurance companies governing 45 sub-branches.


In 2005, the telecommunication business volume reached RMB7.023 billion. The year end figure of fixed telephone subscribers was 2.3002 million, of which urban phone subscribers amounted to 1.7108 million, rural phone subscribers amounted to 589,400. The year end figure of mobile phone subscribers was 2.0387 million.


At the end of 2005, the province has 405,000 Internet users.

(v)Foreign Exchange

Hainan Province has established friendly city relationships with 27 cities or provinces of other countries respectively , 2 of which are international friendly intercommunication relations.

Cities of Friendship of Haikou

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Cities of Friendship of Sanya

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(vi) Higher Education, Science and Technology

Higher education

In 2005, there are 14 ordinary universities with 70 thousand students. In the ordinary technical secondary school, there are 58.4 thousand students.

Scientific research

In 2005, the Hainan province has achieved 84 important scientific and technological outcomes, and organized and implemented 7 projects that belong to the National Scientific and Technological Program, 8 projects of the" 863" Plan , 11 projects of the State Torch Plan, 31 projects of the State Spark Plan and 25 projects of the State Natural Science Fund. Through the entire year, the province applied for 480 patents, among which, 210 projects received the patent authorization. The province spent 1.3 billion yuan on the scientific and technological expenditure.

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(vii) Tourism

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Scenery along the coastline

Along the over 1,500 kilometers long coastline of Hainan Island, sand coast accounts for 50-60%. The beach is several hundred meters to more than one thousand meters in width, and the gradient is about 5 °. Most sea areas are calm, with clear sea water and white, clean and soft sand. Off the seashore, trees are green and the air is fresh. The temperature of the sea water is generally 18-30℃ and the sunshine is sufficient. Sea bath, sun bath, san bath and wind bath are available in most time of the year. From Haikou to east coast of Sanya, there are over 60 areas that can be developed into seashore bathhouses. Along the beach of the whole island, we can see the scenery of various types of seashore characteristics. At the east seacoast, there are special tropical sea forest called mangroves and typical seashore scenery in tropical areas named coral reef. These are of great value for tourist sightseeing. 4 Mangrove Natural Preserve have been set up in Dongzhai Port of Qiongshan City and Qinglan Port of Wenchang City.

Mountains and tropical virgin forest

Mountains in Hainan are strange in shape and majestic in vigor. Among the most famous are the Wuzhi Mountain in a shape of five fingers, Yingge Mountain with majesty vigor, Dongshan Mountain with strange stones, ridges and peaks, Taiping Mountain with falls rushing down as well as Qixian Mountain, Jianfeng Mountain, Diaoluo Mountain, Bawang Mountain. These are all famous scenic spots for mountaineering and sunstroke preventing. The most characteristic area of Hainan's mountain is its tropical virgin forests densely cover the whole island. They are the 4 tropical virgin forest areas like Jianfeng Mountain in Ledong County, Bawang Mountain in Changjiang County, Diaoluo Mountain In Lingshui County and the Wuzhi Mountain in Qiongzhong County. Among these mountains, Jianfeng Mountain is the most typical one.

Precious wildlife resources

In order to protect the species, Hainan has established several Wildlife Natural Parks and domestication farms. They are the Natural Parks for Black Coronet and Long Arm Ape in Changjiang County, Datian slope deer in Dongfang City, swallow with golden fathers in Dazhou island and Wanning City, macaque in Nanwan Byland of Lingshui County and deer domestication farm in Tunchang County. They are available for visiting.

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Scenery of large rivers, water falls and reservoirs

Nandu River, Changhua River, Wanquan River alternate with shoal and pond, wriggleing and having clean and clear water. These are good places for tourism and sightseeing. The best one is the "scenery of Wanquan River". The small river in the inner mountain area and the brook between the mountains wander in the inner mountains and flourish forests where one can see many large stones and waterfalls. The famous waterfalls are Taipinshan Waterfall in Wuzhishan City, Baihualing Waterfall in Qiongzhong County and Wuzhishan Waterfall. In the Island, there are also some reservoirs, in particular, the reservoirs of Shongtao, Nanfu, Changmao, Shilu that are much more beautiful than the lakes and the mountains.

Volcanos, dissolved caverns and hot springs

In Hainan's history, the eruption of the volcano left the island many dead craters. The most typical one is Shishan Mountain in Qiongshan. It has double apexs with two craters on each and there is a slope between in the shape of a saddle Therefore,it is also called Saddle Mountain. Beside Shishan, the Leihuling crater and the Luojingpan crater have been well preserved. There are many dissolved caverns of various shapes, among them, the famous are Luobi Cave in Sanya, Qianlong Cave in Baoting, Huangdi Cave in Changjiang. In the island, the hot springs are widely distributed, most of which contain lower degree of minerals, and have high temperature and large amount of good quality water. Most hot springs can cure diseases and are locate at the areas with pleasant scenery. Xinglong Hot Spring, Nanping Hot Spring, Lanyang Hot Spring, Banling Hot Spring are suitable to develop into the tourist resource combining with sightseeing, recuperating, science and technology research.

Historic sites and places of interest

The historic sites of great historical significance are Wugong Temple that is constructed for the commemoration of Mr.Li Deyu and other four ancient officials who were demoted to Hainan Island during the Tang and the Song dynasty; Dongpo academy of classic learning and Sugong Temple is for the commemoration of Mr.Su Dongpo, the eminent writer of the North Song dynasty. Qiongtai academy of classic learning is for the commemoration of Mr.Jiao Yinghan who was one of the official in charge of patrolling the island. The tome of Qiujun (a famous person in Ming Dynsty); the tome of Hairui (a great anti-uncorruption official of Ming Dynasty) and the Hanmafubo Well which was ordered to exploit for saving the soldiers by General Fubo who was dispatched to lead the soldiers to Hainan by Emperor Hanwudi. Besides, there are also the historic sites called Yazhou ancient city, Weishi Memorial Temple, Wenchang Pavilion and others. For revolutionary monument areas, there are the remains of the headquarter of Qiongya Column, the Memorial statue of the Women Red Army in Jiaji Town, and the former residence of Song Qingling.

Tropical plants and garden scenery

In the Island, people grow a large number of tropical plants that makes the natural sight more attractive. The tourists can not only enjoy the tropical garden scenery to increase their knowledge, but also taste the tropical fruits.

(viii) Economical Environment

Environmental protection

Environmental protection

In 2005, the area of artificial formation reached 32.4 thousand hectares, renovating forestation reached 7.3 thousand hectares. The percentage of forest cover increased to 55.5%. The environment and air quality of the Province are fine. The general suspending granule and the absorbable granule have slight influence on the environment and air of some cities and towns. The quality of the surface water maintains well. The water of 82.3% of the monitored river and 87.5% of the monitored lakes meet the national standard. The water of the offshore area maintains well in general and the first and the second kind of water accounts for 81.8%.

Natural reserves

The construction of the natural reserves is steadily moving forward. By the end of 2005, the province has 68 natural reserves with an area of 286 thousand hectares.

Doing Business in Hainan Province of China:II.Economy

Doing Business in Hainan Province of China:III.Investment

Doing Business in Hainan Province of China:IV. Development Zones

Source: Ministry of Commerce of the People's Republic of China
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