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The Value Of Enterprises Owned By Private Businesses In Hainan Exceeded $23.4 Billion

The Value Of Enterprises Owned By Private Businesses In Hainan Exceeded $23.4 Billion

The authorities of the southern Chinese island of Hainan in January - June registered more than 107 thousand new private entrepreneurs - 22.27% more than in the same period last year, according to the Propaganda Department of the Provincial Party Committee.

According to the data published after the government meeting, which was devoted to stimulating economic growth, there are already more than 1 million commercial organizations in Hainan, of which more than 980 thousand belong to companies, retail outlets, and other objects that are not state-owned.

"The private sector acts as a powerful stimulus for development; it is flexible in responding to changes in market conditions," - said in a news article published on the official page of the social network WeChat.

It specifies that in six months, the added value of enterprises owned by private businesses in Hainan exceeded 163.9 billion yuan ($23.4 billion at the current exchange rate). "This corresponds to about 68% of the gross regional product. Companies have demonstrated stable growth in almost all sectors, which indicates a positive trend," the island's administration said.

Besides, as the authorities informed, according to estimates, private business accounted for up to 87% of taxes received from January to June in the regional budget. "The private sector is an indispensable component of the socio-economic development of Hainan," the published article emphasizes.

In April 2018, Chinese President XI Jinping announced the creation of a pilot free trade zone in Hainan. The goal of the program is to involve the island in the process of globalization and international distribution of labor and to lay a solid innovation base. The provincial administration creates attractive conditions for investors and creates a developed research infrastructure. According to the government plan, by 2050, this region will become a unique international cluster with an advanced economic system, where the campuses of leading universities, advanced laboratories, and headquarters of global corporations will be located.

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