This Day in History: Hainan Island Becomes a Province

By Jesse Pottinger, April 13, 2022

0 0

On April 13, 1988, Hainan Island and its surrounding island groups, formerly a division of Guangdong Province, were declared the nation's newest province by the Chinese government. 

At the same time, the new province of Hainan was also granted status as the country’s fifth special economic zone. To this day it remains the largest of all seven SEZs.

The new title allowed Hainan to import – duty-free – any materials necessary for the production of exported or domestically sold goods.

The province was also exempt from the government’s export quotas. In addition to unlimited export internationally, Hainan-produced goods would now be favored for sale on the Chinese mainland as well. 

For the first two years, foreign investors were also exempt from any government profit taxes, and land rights on the island could be bought from the government for 70 years.

The new policies were enormously successful in promoting foreign investment. In the province’s early months, investments of over USD110 million poured in from over 100 different companies. In 2007, industry in Hainan exceeded agriculture for the first time as the main economic resource.

Hainan today remains both the smallest and southernmost of China’s provinces. The island has gained a reputation both domestically and internationally as a vacation hotspot – famed for its beautiful beaches and tropical climate – and it continues to grow and develop as an economic frontrunner.


READ MORE: Hainan Province officially declared 'World Longevity Island'

For more This Day in History stories, click here or scan the QR.

History-QR.png

[Cover image via Avery h/t Flickr]

more news

This Day in History: Henry Kissinger Secretly Visits China

Half a century ago, then-US National Security Advisor Henry Kissinger flew to Beijing to meet with Chinese officials.

This Day in History: China Develops the Hydrogen Bomb

June 1967 sees China become the world's fourth thermonuclear power.

This Day in History: When Muhammad Ali Came to China

Praying in the Great Mosque of Xi'an and sparring with a Brawl on the Bund referee: a look back on the 1985 visit of The Greatest to the Middle Kingdom

Explainer: How May 1 Became International Workers' Day

Why does China have a holiday for wrongly executed US terror suspects?

This Day in History: China Enacts New Marriage Law

When Mao Zedong famously declared "Women hold up half the sky."

This Day in History: Aleister Crowley Summons Demon in Shanghai

In 1906, the occultist, mystic, magician and self-proclaimed Beast 666 came to Shanghai to summon his Holy Guardian Angel...

This Day in History: Down to the Countryside Movement Launched

Chairman Mao proclaims 'We too have two hands, let us not laze about in the city.'

0 User Comments

In Case You Missed It…

We're on WeChat!

Scan our QR Code at right or follow us at ThatsSanya for events, guides, giveaways and much more!

7 Days in Sanya With thatsmags.com

Weekly updates to your email inbox every Wednesday

Subscribe

Download previous issues

Never miss an issue of That's Sanya!

Visit the archives