On April 13, 2018, Mr. Xi Jinping, General Secretary of the Central Committee of the Communist Party of China and President of the People's Republic of China announced that the central government supports Hainan island in building a pilot free trade zone, and supports Hainan in gradually exploring and steadily advancing the construction of a free trade port.
Hainan is a tropical island at the southernmost of China, which has a land area of ​​35,400 square kilometers, a sea area of ​​about 2 million square kilometers, and a population of about 9.5 million. It is China's second largest island after Taiwan.
Hainan's Location
Hainan Island is located at the junction of Asia and the Pacific Ocean, in the middle of Japan to Singapore. It is an important maritime transportation route connecting the two major water systems of the Pacific Ocean and the Indian Ocean, with unique geographical advantages. With a total coastline of 1944.35 km, it has five natural deep-water ports, and is only about 111.12 km away from the main Eurasian international shipping channel. Hainan is backed on the China mainland with Qiongzhou Strait separated from Guangdong Leizhou peninsula. It faces the Pacific Ocean and the India ocean, and is adjacent to the important international markets such as Philippines, Brunei, Indonesia and Malaysia.
Now great efforts have been put in building the international trade and shipping hub of the Pan South China Sea and vigorously promoting interconnection between the air and sea among the countries and regions along the "one belt along the way". At present, 45 international air routes and 370 domestic air routes have been opened. By a one hour flight from Hainan, one can reach Vietnam, Hong Kong, Macao and China's Zhujiang River delta region. In two hours by flight, one can reach the Philippines, Brunei, Thailand, Myanmar, Laos, Cambodia and China's Yangtze River delta region. In three hours by flight, one can reach Singapore, Malaysia, Indonesia, India, South Korea, Japan and China's Bohai Rim region. Southeast Asia's major commercial cities are within 4-5 hours of travel from Hainan, with its convenient transportation and superior geographical location.
Hainan's Preferential Policies
In January 2021, China National People's Congress published The Law of Hainan Free Trade Port of People's Republic of China (Draft) and is openly gathering suggestions nationwide. This means, The Law of Hainan Free Trade Port and its corresponding legal system is coming soon!
According to the general plan, after Hainan initiates 'Customs Isolation of the Whole Island' in 2025, all the mobility and management of 'people, equity, goods' shall follow The Law of Hainan Free Trade Port and its corresponding legal system. 

Therefore, soon the Law of Hainan Free Trade Port and a series of corresponding supporting laws and regulations will be issued, forming Hainan's own legal system, which will be applied in Hainan, different from the legal system of the China mainland.

Based on the special legal base that promotes more freedom for the majority of industries, companies and entreupreneurs could freely test their business ideas in Hainan Free Trade Port and take advantage of the Hainan FTP to then expand their businesses to the markets of China mainland and surrounding regions.
Preferential CIT Policy
To respond the industry policy and HAINAN overall plan, recently China issued the preferential Corporate Income Tax (CIT) policies to attract more enterprise coming to HAINAN Free Trade Port(“FTP”) to prosper local economy. 
For enterprises in encouraged industries registered in Hainan FTP and engaging in substantive operation, which is much lower than the CIT rate of 25% in most other areas of China.
1. Cut down CIT rate to 15%
2. Exempt CIT
For income from newly increased overseas direct investment derived by enterprises in tourism, modern service and high-tech industries established in Hainan FTP.
3. Expensed in a lump sum
Newly purchased (including self-constructed and self-developed) fixed asset or intangible asset whose unit price is not over 5 million RMB.
4. Accelerate depreciation and amortization period
The aforsaid fixed asset or intangible asset whose unit price is not over 5 million RMB.
Hainan 30-day visa-free access scheme stipulates foreign citizens holding the passport of 59 qualifying countries can have 30 days visa-free entry to Hainan if received by travel agencies. During the stay, they can travel in the whole of Hainan Province without a Chinese visa. 
In late 2020, Hainan Foreign Expert Bureau has conducted multiple seminars to gather opinions about work permit application for expats in Hainan. 

Different from in most places in China, expats could apply to have their existing visa of purposes other than work or visa free transferred into a working residence permit, without exiting Hainan. This favourable policy could bring great convenience to expats who are eager to work in Hainan.
Not sure how to apply for your work visa in Hainan, China? That can be done within 1 week! 
Please do not hesitate to contact us!