China's Hainan shines as free trade port in time of Trump tariffs

Province draws foreign cash as a tourism, shopping and medical destination

20250402N Hainan port

Beijing pegs Hainan as a gateway for foreign trade due to its location on the South China Sea. (Photo by Yukio Tajima)

YUKIO TAJIMA

BEIJING -- China's Hainan province is drawing a spotlight as the forefront of President Xi Jinping's efforts to attract foreign investment as a free-trade port and a medical tourism hub, offering a contrast to U.S. President Donald Trump's protectionist policies.

Hainan, known as China's Hawaii due to its tropical climate and beach resorts, is eager to attract tourists. The cap on annual tax-free spending per person in the province is 100,000 yuan ($13,800), far above Hong Kong's 12,000 yuan.

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