Resting against the mainland and facing Southeast Asian countries and regions across the sea, Hainan occupies an important position in the Asia-Pacific economic circle.
It is a leading supplier of rubber, coconut, coffee and pepper, tropical fruits and out-ofseason vegetables in China.
The Boao Forum for Asia, a leading non-government and non-profit international organization, has set up its permanent headquarters here.
The forum has aroused extensive attention at home and abroad, creating new opportunities for the province's opening-up and international economic and technological co-operations.
Infrastructure in the province has witnessed rapid improvement in the past 15 years.
Power supplies and the traffic condition are both good examples of improvement.
Hainan is the nation's first province to open its third, fourth and fifth flight rights to overseas airlines and its two international airports - Hainan Meilan International Airport and Sanya Fenghuang (Phoenix) International Airport - have opened more than 200 domestic and international air routes to some 100 cities at home and abroad.
The traffic network links all of the province. The Around- Island Expressway, China's only expressway free of charge, has been put to full traffic.
The Yuehai (Guangdong- Hainan) Passage, which started operating a few months ago, links Hainan to the mainland.
It comprises two railways in Guangdong and Hainan respectively, and a train ferry to cross the 12.5-nautical-mile Qiongzhou Straits, which used to be a bottleneck crimping the development of the province.
The province has 24 ports with a total handling capacity of 12.41 million tons.
The sea routes reach 20-odd countries and regions besides the coastal cities in China.
Hainan's economy has seen a steady growth in the past few years, with the economic structure being adjusted for the better.
Its gross domestic product has kept rising at 10.7 per cent on average over the past few years.
An industrial structure is beginning to take shape with the mainstays of natural gas, chemicals, building materials, beverages, food, medicinal goods, chemical fibers, textiles, machinery, electronics, metallurgy and information technology.
The value of agriculture has been increasing by 9.6 per cent on average in the past five years and tourism income by 9.1 per cent.
The province has laid out a series of preferential policies in terms of investment in fixed assets, tax incentives, financial priorities, tariffs, land use and visa handling, which has paid off.
The province encourages and has put into practice different economic and technological co-operations and exchanges while making great efforts to improve the softer aspects of the investment climate.
The province actually utilized foreign direct investment of US$7.75 billion and overseas loans of US$3 billion from 1988 to 2002.
Its total imports and exports were US$25.37 billion in the period.
The province has set up trade ties with 171 countries and regions worldwide.
The Yangpu Economic and Technological Development Zone, Haikou Free Trade Zone, Yalongwan State-level Tourism Resort, and Straits Agricultural Co-operation Pilot Zone have all been attracting the attention of investors.
International exchanges and co-operations have at the same time been moving increasingly closer.
Detailed preferential policies have been made for the pharmaceutical industry in Haikou, capital city of South China¡¯s Hainan Province, to encourage more investment in the field, according to a top city official.
Aiming at shaping Haikou into a pharmaceutical centre, or valley, a primary strategy of turning the city into a national level base for the production, sales and research and development of medicines has been put into place.
Among many others, the favourable policies include: The definition of pharmacy, which refers to the production of chemical, biological and traditional Chinese medicines and related sales. Medical equipment manufacturing and medicine packaging are also included.
The establishment of a special fund for the development of the industry, which comes from two parts: A fixed 150 million yuan (US$18 million) from the national fixed asset and local taxation, which is being used for the newly established pharmaceutical project, technology renovation in enterprises and other technologyrelated projects.
The encouragement of pharmaceutical projects to be established or moved to the park.
Several degrees of favourable rental are passed onto different investors, according to their input, with the most favorable being no rent at all, to those who pour more than 300 million yuan (US$36 million) into a project or if they are national-level medicine makers.
Launched in March 1992 by
the State Council, the Yangpu
Economic Development Zone
¡ª the giant petroleum and
natural gas production base ¡ª
is considered to possess the
most potential among all of the
port development zones in