Hainan and Hong Kong explore greater economic cooperation
HAIKOU, China, May 22, 2026 /PRNewswire/ -- A news report from China Daily:
Delegates from Hainan province and Hong Kong pledged deeper collaboration in finance, technology, data flows and tourism during a conference in Haikou on Thursday, with officials positioning the southern island province as a gateway for international companies entering the Chinese mainland market.
Hainan Party Secretary Feng Fei called on Hong Kong entrepreneurs to expand investment in the Hainan Free Trade Port, which offers zero-tariff policies, low tax rates and a simplified tax system. He promised "maximum sincerity, optimal services and the best environment" for businesses setting up operations in Hainan.
"Hong Kong and Hainan have walked forward hand-in-hand, and the road to cooperation has grown wider," Feng said.
Jonathan Choi Koonshum, chairman of the Chinese General Chamber of Commerce and the Hong Kong-based Sunwah Group, highlighted policy synergies between Hainan's zero-tariff policies and Hong Kong's free-port framework.
He recommended that Hong Kong companies, particularly in electronics and pharmaceuticals, establish factories in Hainan to benefit from tariff exemptions on value-added processed goods, helping build cross-border supply chains for the Asia-Pacific market.
Choi also proposed a cross-border "bonded computing power zone" in Hainan, allowing Hong Kong researchers to access lower-cost computing resources on the mainland through a whitelist management system.
"Hainan has unique policy advantages in cross-border data flows and power costs," he said.
Xing Dandan, CEO of Hainan Modern Technology Group, called for a "front store, back factory" model to deepen Hainan-Hong Kong ties. She identified four priority areas: international computing power trading, space data exports, AI-driven remote sensing services, and leveraging Hong Kong's capital markets to support AI development.
"This month we completed the country's first approved space data export order, reflecting the free trade port's policy advantages," Xing said.
Connie Leung, vice-chairwoman of the culture committee of the Hong Kong Chinese General Chamber of Commerce, said Hainan's production and processing capabilities could complement Hong Kong's financial and professional services.
Hong Kong has long been Hainan's largest source of external investment. In 2025, Hong Kong companies established 793 new ventures in Hainan, while trade between the two sides reached 9.35 billion yuan ($2.6 billion), more than triple the 2020 level.
SOURCE China Daily
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