A bird's-eye view of Haikou city, Hainan province. [Photo/VCG]

China's southernmost province, Hainan, has issued Key Measures for Optimizing the Business Environment in Hainan (2025 Edition), which is designed to meet the practical needs of developing the Hainan Free Trade Port (FTP) while strengthening reform and innovation. The document proposes 166 specific measures in 60 tasks across 10 key areas. The main points include:

I. Accelerating the Development of a Market-Oriented Business Environment Characterized by Freedom, Convenience, Fairness, and Order

Hainan aims to effectively reduce the comprehensive business costs for enterprises, enhance business efficiency, and continuously improve the overall quality of the business environment.

01 Market Access

Building on the optimization of 127 administrative licensing items into notification-commitment items, Hainan further deepens the "commitment-based entry" reform of market access, and cancels additional licensing requirements in a lawful manner.

Hainan accelerates efforts to establish a coordinated domestic and foreign investment access model tailored to the Hainan FTP.

Hainan continues to optimize the market access environment for emerging sectors such as deep-sea exploration, aerospace, modern seed industries, and artificial intelligence. The province is implementing guided and interactive administrative licensing models, exploring "regulatory sandbox" mechanisms, and creating an innovative, flexible and inclusive governance environment.

02 Fair Competition

Hainan strengthens the fundamental role of competition policy, maintaining fair competition as a key principle for effective economic operations.

Hainan strictly enforces fair competition review responsibilities, enhancing the rigid constraint of such reviews, and promptly adjusts or revokes policy measures that conflict with market access requirements.

Hainan actively promotes the development of a unified national market, implements machine-managed bidding reforms, explores advancing machine-managed government procurement, and promotes procurement based on quality and value, effectively reducing institutional transaction costs.

Hainan expands the coverage of public trading platforms and advances one network transactions for public resources.

03 Promoting High-Quality Development of the Private Sector

Hainan remains steadfast in consolidating and developing the public sector, while also encouraging, supporting and guiding the growth of the non-public sector.

Hainan affirms that the status and role of the non-public sector in the country's economic and social development have not changed, and the principles and policies to encourage, support and guide its development remain unchanged. The commitment to providing a sound environment and more opportunities for the sector continues.
Hainan views private enterprises and entrepreneurs as integral members of the community, emphasizing that they "belong to our own family."

Hainan protects the property rights of private enterprises and the legitimate rights and interests of entrepreneurs in a lawful manner, actively fostering an environment where enterprises of all ownership types can compete fairly and develop together. It ensures equal access to production factors, fair participation in market competition, and equal legal protection for all types of ownership economies according to law, promoting complementary advantages and shared development.

Hainan improves the institutional mechanisms for opening and sharing public scientific and technological resources (such as major scientific infrastructure, large-scale research instruments and equipment, and scientific data) with private enterprises.

Hainan supports private enterprises in actively participating in national major initiatives, such as the Belt and Road Initiative.

04 Production Factor Support

Hainan supports flexible land supply methods, promotes mixed land use development and reasonable land use conversion.

Hainan guides financial institutions, venture capital institutions, and the government in jointly exploring the establishment of relief funds, such as emergency loan rollover funds, to assist private and small and micro-sized enterprises.

Hainan accelerates the development of an "Island of Talent", focusing on talent attraction, cultivation and utilization. It explores and establishes a talent cultivation model integrating "Park + Research + Education" and provides supporting services such as healthcare for talent and education for their children, stimulating the endogenous motivation and innovative vitality of all types of business entities.

II. Accelerating the establishment of a stable, fair, transparent, and predictable business environment based on the rule of law

The Key Measures for Optimizing the Business Environment in Hainan (2025 Edition) upholds the principle that the rule of law creates the best business environment. The province consistently integrates reform with the rule of law, ensuring that major reforms are legally grounded and promptly elevating reform achievements into legal frameworks.

01 Accelerating the Improvement of Laws, Regulations, and Policy Systems Compatible with a World-Class Business Environment

Hainan accelerates the development of the Hainan FTP legal framework, expediting the issuance of regulations and rules in key areas, such as customs clearance credit management at the "second-tier ports", private economy promotion, foreign investment, enterprise-related supervision and inspections, public data management, enterprise compliance guidance services, and the verification and handling of business environment issues. (The "second-tier ports" regulate goods between Hainan Free Trade Port and the mainland.) Hainan also improves administrative procedures and legal systems, strengthening the protection of legitimate expectations and interests arising from government actions.

Hainan accelerates the creation of a stable, transparent, and predictable policy environment, improves mechanisms for enterprises to participate in enterprise-related policy-making processes, advances the regular evaluation and cleanup of enterprise-related policies, and strengthens efforts to prevent and correct issues like "one-size-fits-all" and "slam-on-the-brakes" policies.

Hainan explores institutional mechanisms for conducting prior legal reviews of reports, requests for instructions, and directives with public policy significance.

02 Accelerating the Construction of a Supervision and Law Enforcement Environment Characterized by "Non-Interference Unless Necessary" and "Inclusive Prudence" Towards Enterprises

Hainan accelerates the formulation of local regulations on enterprise-related supervision and inspections, implementing strict measures to standardize administrative inspections involving enterprises.

The province fully implements "Comprehensive One-Time Inspections" and "Code-Presented Inspections", advances 100 instances of "Cross-Departmental Integrated Supervision for One Matter", and minimizes the registration of supervision data to "Once at the Most".

Hainan lawfully and scientifically determines the types and scope of penalties to prevent issues like "excessive penalties for minor offenses" and "inconsistent penalties for similar cases".

03 Strengthening Judicial Safeguards for the Business Environment

To meet the judicial needs of business entities, Hainan issues opinions to support the creation of a first-class, rule-of-law based business environment.

Hainan strives to enhance the specialization of foreign-related commercial and maritime adjudication, continuously improving trial and enforcement efficiency.

Hainan improves the development of the "One-Stop Foreign Law Service Platform" and the International Commercial Dispute Resolution Center. It explores the introduction of ad hoc arbitration, positioning Hainan as a "preferred location" for commercial dispute resolution. It actively creates specialized application scenarios for ad hoc arbitration in fields like the biological seed industry, commercial aerospace, and deep-sea exploration and utilization.

III. Accelerating the Development of an Internationalized Business Environment Characterized by Openness and Integration

Openness is a distinctive characteristic of Chinese modernization and a prominent feature of the Hainan FTP. Hainan adheres to openness as a vital aspect of the business environment, leverages openness to drive reform, proactively aligns with high-standard international economic and trade rules, promotes institutional opening in rules, regulations, management and standards, and continuously enhances the international appeal of the Hainan FTP.

01 Improving the "One-Window Service" for International Trade and Investment

Hainan increases efforts to cultivate enterprises that meet customs standards, particularly Authorized Economic Operator (AEO) enterprises.

Hainan deepens the implementation of the Qualified Foreign Limited Partner (QFLP) pilot program.

Hainan fully leverages the policy advantages of the Hainan FTP Multi-Functional Free Trade Account (EF Account) to facilitate the free and convenient flow of funds between the Hainan FTP and international markets.

02 Enhancing International Service Capabilities

Hainan provides comprehensive life-cycle service guarantees for foreign-funded enterprises, promotes the establishment of international service zones in government service centers in suitable areas, advances integrated government services to ensure that foreign-funded enterprises and foreigners can complete tasks through a one-stop process, and accelerates the construction of the Hainan FTP International Service Portal.

03 Creating an Authoritative Window for FTP Policy Interpretation

Hainan upgrades the Hainan FTP One-Stop Policy Query and Interpretation Platform, launches foreign language translations and authoritative interpretations of important laws, regulations and policies, provides unified external publicity and interpretation services in multiple languages, and strengthens international policy interpretations.

IV. Accelerating the Development of a Standardized and Efficient Government Service Environment

Optimizing government services and improving administrative efficiency are the most direct and effective ways to enhance satisfaction and the sense of gain for both businesses and the public.

01 Actively Building a "Handle One Thing Efficiently" Service System for the Hainan FTP

Building on the successful implementation of the "Handle One Thing Efficiently" initiatives by the State Council, Hainan has launched over 12 services with local characteristics to improve efficiency. The province deepens reforms such as "Simplified Certificates for Convenience" and "Extreme Simplified Approval", promoting more efficient, integrated and flexible processing in more domains.

02 Promoting Efficient Government Construction Through Government Digital Transformation

The province continuously advances the development of a digital business environment, actively carrying out the "Strengthening Foundations and Enhancing Capabilities" five-pronged action plan for government digital transformation. Hainan promotes "One Network for All Services", "One Network for Collaboration", and "One Network for Supervision", facilitating the opening and sharing of data resources.

In 2025, Hainan will achieve "unified acceptance" for over 90 percent of provincial government service items and streamline 100 high-frequency service items. While ensuring system and data security, the province will integrate government large models and comprehensively implement the grassroots "Single Form" system, maximizing convenience for businesses and the public while reducing the burden on grassroots units.

03 Continuously Polishing the "FTP at Your Service" Enterprise Service Brand

Hainan establishes a "One code for the whole island" service mechanism for enterprises, continues the "accompanying the masses through the procedures" activity, and keeps improving the "Large-Scale Research and Service for Enterprises" mechanism to provide higher quality and more efficient services to businesses.

04 Continuously Improving the Closed-Loop Resolution Mechanism for Issues and Appeals

Hainan has developed the 12345 hotline into the FTP's "General Customer Service", established a legal consultation mechanism for resolving major, difficult and complex business environment issues, formulated an issue verification and handling system to guide the resolution of long-standing, cross-departmental, cross-domain and cross-level problems. The province deepens the "12345 + Grid Management + Direct Linkage" work mechanism, improves the responsiveness of cities, counties and departments to promptly address issues according to law, and implements the "Township Whistles, Departments Respond to Whistles, and Handle Complaints without Delay" approach.

05 Focusing on Optimizing the Business Environment for Key Industries and Characteristic Products

To adapt to Hainan's characteristic "4+3+3" modern industrial system and the five key sectors including seed, deep-sea, aerospace, green industry and digitalization, the province integrates approval services, industrial policies, financial support, talent backing, and resource guarantees. It optimizes precise, targeted business environment measures to support the healthy development of entire industrial chains and the full industry life-cycle, continuously enhancing the business environment for key industries and characteristic products.

V. Better Serving Island-Wide Special Customs Operations through Building a "Trustworthy Hainan"

Focusing on the development of a new credit-based supervision mechanism, Hainan fortifies government integrity in a bid to lead social integrity, creating the "Trustworthy Hainan" brand and the concept that credit matters within the Hainan FTP.

01 Establishing a Credit-Based Customs Clearance Mechanism Compatible with Special Customs Operations

Hainan accelerates the legislation for customs clearance credit management at the second-tier ports, which regulates goods between HFTP and the mainland, and actively build multi-department, multi-domain, multi-level systems and regulations for credit information sharing, mutual recognition, conversion and application.

Hainan implements tiered and categorized supervision, improves the risk prevention and control system for credit-based customs clearance supervision at the second-tier ports, and explores the legal extension of the credit-based customs clearance system to the level of social governance.

02 Promoting Honesty and Trustworthiness among All Entities

Hainan conducts government integrity evaluations and is exploring establishing a government contract performance supervision mechanism.

Hainan formulates local standards for social organization credit management and implements tiered and categorized supervision of social organizations.

Hainan deepens the application of the personal credit scores.

03 Improving the New Credit-Based Supervision Mechanism

Hainan has established and improved systems for credit classification management and credit commitment management, and dynamically updates the Hainan FTP list of incentive measures for trustworthiness, and the supplementary list of disciplinary measures for dishonesty. The province plans to add, integrate or upgrade over 40 application scenarios in 2025.

VI. Strengthening Foundational Guarantees for the Business Environment

01 Consolidating Public Security Guarantees

Hainan strikes a balance between development and security, advancing the construction of a safe Hainan and working to create a favorable public security environment. The province is committed to cracking down on all types of illegal activities that affect the normal production and operation of enterprises, shifting the public security governance model from a primarily post-incident response to one focused on pre-incident prevention. Hainan aims to become the safest region in China while maintaining high levels of openness, ensuring that security matches the level of openness.

Hainan upholds the "fundamental position" of production safety and works to improve the production safety management system.

Hainan enhances the food and drug safety risk prevention and control system, strengthening food and drug safety supervision according to the "Four Strictest" requirements in terms of standards, supervision, penalties and accountability.

02 Promoting the Construction of a Clean FTP

Integrity is an inherent requirement and fundamental political prerequisite for building the Hainan FTP. Hainan actively fosters a cordial and clean government-business relationship, addressing prominent issues in the business environment. The province continuously implements special actions to eliminate obstacles and support business environment optimization, strengthens the integrated supervision mechanism, and enhances the application of the 12345 hotline platform.

03 Actively Building an Ecological Security Barrier

Hainan upholds the principle that a sound ecological environment is the core element of a first-class business environment.

Hainan continues to consolidate and expand the achievements of landmark projects such as the Hainan Tropical Rainforest National Park, Clean Energy Island, New Energy Vehicles, the "Plastic Ban", Prefabricated Construction, and the initiative in "co-governance in sewage treatment, water supply, water drainage, flood prevention, water saving and seawater protection" while introducing new flagship projects.

Hainan sticks to its goal of achieving world-leading standards in environmental quality and resource utilization efficiency, enhancing the utilization efficiency of land resources and energy, and improving the output rate of major resources.

04 Actively Fostering a Business Culture that Respects, Welcomes, and Secures Businesses

Hainan promotes the spirit of entrepreneurship by creating a sound institutional environment and cultural atmosphere that respects entrepreneurs, protects their lawful property, and supports innovation.

Hainan has launched the "Business Environment Optimization Promotion Year" initiative, widely publicizing Hainan's business environment optimization measures and achievements through multiple levels, angles and dimensions, and building a social environment that respects, welcomes and secures businesses, creating a relaxed and open development atmosphere.

05 Treating Societal Civility as an Important Factor in the Business Environment

Hainan continuously enhances the civility of residents and society as a whole.

Hainan encourages social trends of law-abiding behavior, honesty, trustworthiness, respect for innovation, tolerance, friendliness, diligence and frugality.

Note: The English version is for reference only. In case of any discrepancies, the Chinese version shall prevail.

Source: Hainan Provincial Department of Business Environment Development