Hainan Special Economic Zone: Success Factors

The article discusses the phased development of the Hainan Special Economic Zone (SEZ) from 1988 to 2022. It examines the transformation of Hainan’s economy from a region with traditional agriculture to its development into an international tourist island and center of international trade. The successful development of the Hainan SEZ is explained by the approach to establishing the special economic zone and the specifics of policy implementation. In China, SEZs were created for an indefinite period in regions with distinct competitive advantages for both territorial development and economic sectors simultaneously. The authors see the peculiarities of policy implementation in the phased establishment of a special economic and legal regime, which includes the introduction and improvement of stimulating tools and incentive mechanisms in the areas of attracting foreign investment, customs duties, land relations, tax incentives, the introduction of a visa-free regime, duty-free trade, and the enhancement of administrative measures in accordance with changing goals and objectives. The factors contributing to the success of the Hainan SEZ include ensuring the steady development of infrastructure as the basis for structural shifts in the region’s economy; the introduction of international standards in hotel services and environmental management; the improvement of intellectual property protection mechanisms; the creation of intelligent logistics systems based on automation and artificial intelligence technologies; optimization of customs control; improvement of international payment methods using the yuan; and the provision of various financial services. The peculiarities of policy implementation and the factors influencing the development of the Hainan SEZ create a synergistic effect, providing favorable conditions for business activities and offering high-quality goods and services for consumers. All of this contributes to economic growth and the improvement of the living standards of the population in the Hainan region and China as a whole. China’s experience in ensuring the effective functioning of SEZs and the development of the regions they are located in can serve as a basis for improving approaches to the creation and operation of SEZs in Russia and other countries.