On the morning of January 23, the Third Session of the Seventh Hainan Provincial People’s Congress opened in Haikou City. At the session, Governor Liu Xiaoming delivered a report on the work of the provincial government. What achievements has Hainan made over the past year? What are its main targets and priorities for this year? What work will it do? All of the points are presented below.

I. A Review of the Work in 2023

Provincial GDP was up by 9.2%

Added value of industries above the designated size was up by 18.5%

Added value of service industries was up by 10.3%

Local general public budget revenue was up by 8.2%

Fixed asset investment was up by 1.1%

Total retail sales of consumer goods was up by 10.7% 

Trade in goods was up by 15.3%

Trade in services was up by 29.6% 

Per capita disposable income of urban residents was up by 6.3% 

Per capita disposable income of rural residents was up by 8.3% 

Surveyed unemployment rate in urban areas stood at 5.2%

Consumer prices index (CPI) was up by 0.3%

The growth rates of many indicators rank among the best in the country

(1) Economic recovery accelerated with improved quality

The recovery of tourism led to consumer market recovery. The coastal scenic highway fully opened to traffic. The province welcomed 49.9% more tourists, with a 71.9% increase in total tourism revenue. The sales at the 12 offshore duty-free shops reached 58.09 billion yuan, an increase of 19.3%. The Boao Lecheng International Medical Tourism Pilot Zone introduced 86 types of innovative drugs and medical devices from overseas. The number of medical tourists was up by 60.1%.

Project implementation drove the optimization of investment structures. We innovated project planning, promotion, and support mechanisms, and 204 key provincial projects were carried out. Industrial investment across the province grew by 6.3%, with high-tech industry investment up by 13%. The revenue of 13 key industrial parks of the Hainan Free Trade Port (FTP) reached 2 trillion yuan.

Direct and fast implementation of preferential business policies stimulated corporate vitality. Newly implemented tax and fee cuts, tax rebates, and postponed fee payments amounted to over 16 billion yuan. The province’s “Haiyidui” pro-business policy delivery service system disbursed 2.33 billion yuan, and inclusive loans to micro and small businesses grew by 20%.

An optimized business environment facilitated the development of business entities. The “machine-based bidding” system was fully put into service. More than 90% of government services were handled online. The number of items in the notification-and-commitment system for business licensing remained the highest in the country. The province’s first national demonstration zone for the development of the social credit system was established. A total of 48 new centrally-administered state-owned enterprises settled in Hainan. The revenue of provincial-level state-owned enterprises rose by 65.2%, the highest growth rate in the country.

(2) The building of Hainan Free Trade Port (FTP) took shape and gained momentum

Preparations for island-wide speical customs operations are in full swing. The construction of the major parts of 31 related projects has been basically completed, the policy and system design of 33 items has accelerated, and 20 of the 27 stress test tasks have been conducted.

FTP policies were progressively upgraded with increasingly clear effectiveness. The three “zero-tariff” lists continued to expand and become more effective, adding 22 items of transport vehicles and yachts, with the value of zero-tariff imported goods reaching 19.57 billion yuan. Offshore duty-free shopping options of “pick-up upon guarantee” and “instant pick-up” were implemented. Eleven pilot policies and measures in the Yangpu Bonded Port Area were expanded to the entire Yangpu Area. The import tariff exemption policy for products after value-added processing that are sold to other areas of China (domestic sales) were expanded to key industrial parks across the province, with the number of beneficiary enterprises doubled, and the value of domestic sales reaching 4.67 billion yuan. Cross-border receipts and payments totaled US$87.32 billion, an increase of 39.5%. Six new institutional innovations were issued.

Opening up and cooperation yielded fruitful results. 15 core policy measures were issued to support the building of Hainan’s “two headquarters bases”. The Hunan-Hainan cooperation industrial park and the Guangdong-Hainan cooperation industrial park started construction. Provincial leaders led delegations to 26 countries and regions in Southeast Asia, the Middle East, Europe, and America, to carry out international investment promotion, attracting a number of foreign-funded companies to Hainan. Two fifth-freedom passenger air routes were opened, 50 international passenger and cargo flight routes were restored or newly opened, and 11 container liner shipping routes were newly added.

(3) Multiple breakthroughs were achieved in technological innovation and industrial upgrading

Innovation-driven development was strengthened. Spending on R&D investment is expected to rise to about 1.2% of the province’s GDP. The No.1 launch pad of the nation’s first commercial spacecraft launch site was completed. The number of authorized patents increased by 44.3%, and the transaction value of technology contracts grew by 46.3%. Up to 6 full-time academicians of the Chinese Academy of Sciences and the Chinese Academy of Engineering are now working in Hainan.

New industrial sectors gained momentum. A number of petrochemical new material projects, including a million-ton ethylene refinery, were put into production with a newly increased output value of 26 billion yuan. The province’s first semiconductor chip module production line was put into operation. The province’s largest centralized photovoltaic base was connected to the grid and started operation. The added value of manufacturing enterprises above the designated size increased by 21.8%. 594 additional small and medium-sized technology enterprises were established. Hainan is now home to 347 specialized, high-end and innovation-driven enterprises. Haikou became one of the first pilot cities for the digitalization of SMEs in the country.

Modern service industry was expanded and upgraded. The Yangpu Port National Logistics Hub was approved. Eight new international cargo ships were registered at the Yangpu Port of China, bringing the total to 43, catapulting the port to the second nationwide in terms of the total tonnage of international ships. The import and export value of airport bonded maintenance exceeded 12 billion yuan. Phase one of the world’s first commercial underwater data center project was completed. The first rural commercial bank in the country with a unified legal entity model across a province was approved for establishment. The comprehensive income of the convention and exhibition industry increased by 53%.

(4) Urban and rural development became more coordinated

Major infrastructure was upgraded. The largest ro-ro (roll-on, roll-off) passenger terminal in the country was completed. China’s first 500 KV province-wide digital power grid began construction, and the “one network” charging and battery-swapping facilities system is peerless in the country. Hainan is the first province in which all administrative villages enjoy access to gigabit fiber optic internet and 5G networks.

The provision and support of production factors were significantly strengthened. The province’s territorial spatial development plan was approved by the State Council.

Rural revitalization was pushed forward. The per capita net income of families lifted out of poverty increased by 12.4%, and the renovation of dilapidated rural houses was completed. A national modern agriculture industrial park, a industrial cluster with special strength and features, and a strong industrial town were established. The total output value of the agricultural product processing industry grew by 9%. One billion yuan was allocated for natural rubber insurance premium subsidies and the promotion of good varieties and growing methods, and 250,000 mu (about 16666.7 hectares) of plantations were designated for special rubber. Deep-sea aquaculture waters of 300,000 cubic meters were added. There were 16 provincial-level shared farms. One hundred “beautiful villages” were newly built.

(5) People’s livelihood and social undertakings saw comprehensive progress

All ten projects concerning people’s livelihood were completed.

The employment-first policy was effectively implemented. 171,000 new urban jobs were created, and 1.494 million rural residents left their hometowns for work. A total of 238 employment service stations were set up and put into operation. 168,000 talents of various specialties were attracted to Hainan, and 69,000 college graduates signed contracts at the “Hainan Recruitment Initiative”.

Education was improved through a package of policies. 46,000 new places were added for basic education, two specialized schools were established, and 6,360 teachers were introduced for urgently needed positions. Air conditioners were installed in 5,506 classrooms of public primary and secondary schools, and illumination renovation was carried out in 3,710 high school classrooms. Hainan’s first independent education project run by a foreign university, Hainan Bielefeld University of Applied Sciences, started official enrollment.

Steady improvements were made in medical and health services. The relocation of the provincial Center for Disease Control and Prevention was completed, and the Hainan Public Health Clinical Center and the new project of Hainan Obstetrics and Gynecology Hospital finished construction and were handed over. Phase one projects of all four national-level regional medical centers were completed. The electronic prescription center went online. The average inpatient cost of public hospitals decreased by 12.9%. 52 digital therapy companies were established in Hainan.

The cultural and sports sectors were flourishing. The 7th Hainan Ethnic Minority Traditional Games and the 1st China (Hainan) Dongpo Cultural Tourism Conference were successfully held. The Qiongzhong women’s football team won the 2023 Chinese Football Association (CFA) Women’s Football League championship and will compete in the CFA Super League this year. The Hainan Provincial Intangible Cultural Heritage Exhibition Center, phase two of Haikou Bay Performance Center, and Hainan Tanka Museum were completed. A Ming Dynasty shipwreck site was discovered for the first time in Hainan at a depth of 1,500 meters in the South China Sea, a major archaeological discovery of global significance.

Social security measures were bolstered to meet basic needs. The minimum urban and rural subsistence allowances were increased by 13.1% and 20.7%, respectively, and the basic living standards for people living in extreme poverty were raised by 12.5%. The average price of “15+N” vegetables remained stable. The renovation of 410 old and dilapidated urban residential areas started, benefiting 36,000 households. The construction of 13,000 units of affordable housing started, and 29,000 units were completed.

(6) Green and low-carbon transition deepened

The annual proportion of days with good air quality was 99.5%, with a PM2.5 concentration of 12 micrograms per cubic meter. The surface water quality at over 95.9% of province-monitored sections was rated as good. Hainan remained a national leader in the quality of ecological environment.

Decisive measures were adopted to improve the environment. Immediate actions were taken in response to problems identified during the third round of central environmental inspection, and the annual rectification tasks assigned by the national marine environment inspection team were completed.

New mechanisms for turning “lucid waters and lush mountains” into “invaluable assets” were explored and improved. The local Gross Ecosystem Product (GEP) accounting standards at the provincial level that reflect Hainan’s characteristics and include both land and sea were issued, and the first batch of typical cases of ecological product value realization was released. The first GEP loan was granted, the first blue carbon trade was made, and the first 60,000-ton carbon capture project started construction.

Landmark projects made new progress. The master plan for the Hainan Tropical Rainforest National Park was announced and implemented. The proportion of clean energy installations reached 78.5%. New energy vehicles accounted for over 50% of all vehicles sold in 2023, ranking first in the country, and the province’s total number of new energy vehicles in use is the second highest in the country. Degradable plastic products have replaced 80.2% of conventional plastic products. The area of new prefabricated buildings accounted for more than 70% of the area of all new constructions, ranking second nationally. Investment in sewage treatment, water supply, water drainage, flood prevention, water conservation and seawater improvement totaled 20.3 billion yuan. The Boao Dongyu Island Zero-Carbon Demonstration Zone is ready for trial operation.

(7) Risk prevention and control was solid and effective

The risk prevention and control network for the Hainan Free Trade Port (FTP) has been strengthened. The 16 provincial-level risk prevention and control special working groups were required to assume their full responsibilities, and 145 potential risks were identified. Efforts to combat the illegal arbitrage of duty-free goods were strengthened. Financial institution reforms were advanced to mitigate risks, with non-performing loan ratio down by 4.37%.

Workplace safety saw steady improvements. The number of workplace accidents and deaths were down by 8.4% and 12.6%, respectively. The Hainan Provincial Emergency Supplies Reserve Center began construction, and the Hainan Provincial Aviation Emergency Rescue Center was approved for establishment.

More efforts were devoted to advance the Safe Hainan initiative. Application scenarios of the two foundational projects, the “Smart Hainan” and the “Hainan Integrity Initiative”, were continuously expanded. The ratio of drug addicts to the resident population decreased to 0.4 per mille. Haikou was recognized as the province’s first national food safety demonstration city.

II. Work Plans for 2024

General requirements for the work of the government are as follows:

•follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era;

•fully implement the guiding principles from the 20th National Congress of the Communist Party of China (CPC), the second plenary session of the 20th CPC Central Committee, and the Central Economic Work Conference;

•conscientiously implement the guiding principles from the 8th Hainan Provincial Congress of the CPC, the plenary sessions of the 8th Hainan Provincial Party Committee, and the Provincial Party Committee’s Economic Work Conference;

•steadfastly adhere to the strategic framework of “One Guideline, Three Foundations, Four Beams, and Eight Pillars;”

•adhere to the principle of seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old;

•fully and faithfully apply the new development philosophy on all fronts and actively integrate into and contribute to the new development paradigm;

•pursue high-quality development, deepen reform and opening up, promote science and technological innovation, and build a modern industrial system;

•coordinate the preparation for island-wide special customs operations and economic and social development, coordinate efforts to boost domestic demand and promote supply-side structural reform, coordinate new urbanization and comprehensive rural revitalization, and coordinate high-quality development and high-level security;

•effectively enhance economic vitality, prevent and resolve risks, improve social expectations, consolidate and boost the upward trend of the economy, so as to effectively upgrade and appropriately expand economic output;

•enhance people’s livelihood and welfare and maintain social stability; and

•score new victories in the building and high-quality development of the Hainan Free Trade Port (FTP).

The main targets for economic and social development this year are as follows:

GDP growth of about 8%

Local general public budget revenue growth of about 7%

Fixed asset investment growth of about 10%

Increase in total retail sales of consumer goods of about 8%

Urban and rural residents’ per capita disposable income growth of about 8% and 8.5%, respectively

Surveyed urban unemployment rate below 5.5%

CPI increase below 3%

Sound quality of the eco-environment, and compliance with national assigned targets in energy conservation, emission reduction and carbon emission intensity decline

Seven major campaigns on key issues and in key areas will be carried out:

Prepare for island-wide special customs operations

Ramp up investment and enhance investment effectiveness

Bring international tourism and consumption to a new level

Strengthen industrial chains

Comprehensively improve the business environment

Ensure steady development, expansion, and quality improvement of the financial sector

Stabilize the growth and improve the quality of foreign trade and investment

The following nine tasks centering on high-quality development will be conducted:

(1) Step up efforts to promote economic recovery and growth

Expand effective investment

Stimulate potential consumption

Foster more vibrant economic entities

(2) Deepen reform and opening up at a higher level

Complete the building of infrastructure and institutions for special customs operations

Promote the effectiveness and impact of FTP policies

Promote high-standard opening up

Concentrate efforts to create a first-class business environment

(3) Coordinate the development of education, science and technology, and talent at greater depth

Build a high-quality education system

Build innovation and structural reform hubs for science and technology

Strengthen talent cultivation and attraction

(4) Build a modern industrial system with higher standard

Concentrate on advanced manufacturing

Cultivate new productive forces

Enhance the appeal of tourism

Vigorously develop digital economy

Improve the modern financial system

Further develop marine economy

Strengthen industrial park platforms

(5) Promote more coordinated regional development

Enhance the capacity of core areas

Advance new urbanization

Strengthen infrastructure support

Secure the provision of production factors

(6) Accelerate comprehensive rural revitalization

Promote high-quality and efficient agriculture development

Increase rural income

Improve rural development and governance

(7) Devote more efforts to improving people’s livelihood

Ensure stable employment and prices through multiple measures

Make all-around efforts to safeguard public health

Promote cultural and sports programs

Weave a strong social security net

(8) Promote ecological conservation to a higher standard

Address salient environmental issues

Launch landmark projects

Advance efforts to meet the dual carbon goals

(9) Ensure both development and security with stronger measures

Prioritize security guarantees

Resolutely ensure workplace safety

Strive to make Hainan one of the safest areas in China

III. Vigorously Enhance Government Efficiency

Emphasize the prompt implementation of the decisions and plans of the Party Central Committee

Take the initiative to step up and get things done

Emphasize the rule of law and regulate the exercise of judicial power

Highlight digital empowerment in driving the construction of a digital government

Motivate the sense of responsibility and actions through “strict governance with profound care”