China's Biggest SEZ Reports Faster Economic Growth

Hainan Province, China's largest special economic zone (SEZ), chalked up 25.97 billion yuan (about 3.13 billion US dollars) in gross domestic product (GDP) in the first six months of the year, up 9.1 percent from the same period last year.

The province also experienced an economic growth of above 8 percent, higher than the national average growth rate, for years of 1998, 1999 and 2000, and is now blessed with an economic development structure with high-efficiency tropical agriculture and pleasure-seeking holiday tourism as the economic powerhouses, supported by new industries, said information from a recent provincial conference on economic situation.

Hainan used to fall under jurisdiction of south China's Guangdong Province until 1988, when it became a province of its own and the country's largest special economic zone, but with very poor infrastructure and few industrial businesses.

Hainan's major economic progress has been made as this island province has concentrated efforts on economic construction since it obtained its provincial status in 1988, especially in the past three years. It has worked out a range of policies to improve people's living standards, advance adjustment of economic structure and to foster new economic powerhouses.

In the first six months of the year, the island province produced 2.37 million tons of in- and off-season vegetables, more than one million tons of fruits, 205,000 tons of meat products, and 444,000 tons of aquatic products, with the increases ranging from 6 percent to 27 percent from the same period last year.

According to the conference sources, agriculture now contributes 44.6 percent to the province's economic growth.

At the same time, the province has also made painstaking efforts to standardize tourism service, which has led to an improvement of Hainan's image among tourists. Hainan has now become one of China's most popular tourism destinations.

From January to June, the island province received more than 5. 57 million stay-over-the-night tourists, up 14.5 percent from the same period last year.

The province's efforts to expand high-technology and industries with high added value, foster high-tech industrial businesses while upgrading traditional industries have advanced the province' s industrial production.

Main industrial enterprises of Hainan completed 3.6 billion yuan (about 434 million U.S. dollars) in industrial added value in the first six months of the year, up 12.9 percent from the same period last year.

Fixed Assets Investments Increasing

Investment in fixed assets in the country's largest special economic zone (SEZ) has been growing by double digits since the beginning of the year.

According to local sources, fixed assets investment exceeded 6. 7 billion yuan (about 807 million U.S. dollars) in Hainan Island from January to June, up 46.2 percent from the same period last year.

Hainan, which used to fall under jurisdiction of south China's Guangdong Province, became a province of its own and a special economic zone in 1988. However, infrastructure had been few and backward.

Investments in fixed assets have been diverse and have increased rapidly in the past few years. From 1998 to 2000, fixed assets investments totaled 56.64 billion yuan (about 6.83 billion U.S. dollars), said the local sources.

With increased funding for fixed assets, this south Chinese island province has been blessed with completion of a group of major projects, including Meilan International Airport in Haikou, the provincial capital, and 318-km-long expressways.

Different parts of the island province are now connected by an expressway ring built along the island coast. A railway project linking up Guangdong and Hainan began construction in 1998 and will be finished and ready for service by 2002. The island province is also placed higher up in the country by the availability of dialing service.






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