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China to open new trade hub in South China Sea

China to open new trade hub in South China Sea


In June 2020, China’s central government announced its economic masterplan to develop the south China island of Hainan into a Free Trade Port (FTP), according to a report by GAIN. The advertised zero-tariffs for imported products processed inside the FTP may lead to future opportunities for imports of fresh produce. The plan’s overarching goal is by 2050 to make Hainan – China’s smallest province with a population of about 10 million – into another major economic-growth hub in South China to complement neighbouring Guangzhou, Shenzhen, and Hong Kong. In order to realise this ambitious vision, the government plans to introduce the appropriate mix of infrastructure and policy conditions to stimulate trade and investment, especially in high-tech, tourism, and other service industries.

Although not specifically mentioned in the masterplan, Hainan authorities are interested in developing the island’s food processing industry as part of this broader economic initiative. In particular, the local government is looking to attract the needed investment to expand and diversify the island’s relatively small food processing industry, most of which is currently focused on seafood and fruit processing. One of the advertised selling points that the government hopes will attract investment and trade is lower tax rates and zero-tariffs before 2025. Imported agricultural (and other) products that undergo a 30-percent value addition in Hainan food processing facilities can enter mainland China duty free, though still subject to the value-added and consumption taxes.  In contrast, imported agricultural products, such as seafood, that are processed in other free trade zones or bonded areas elsewhere in China are usually re-exported since these products are still subject to the same tariffs that apply to direct imports.

TAGS: China, trade, hub, Hainan

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Logistics Hub to make its debut at Fruit Logistica 2016

Supply chains are becoming longer and more complicated, sometimes spanning several continents. The right choice of logistic services can determine whether or not a fresh produce consignment can be sold.

Logistics Hub is a new three-day series of events focused on fresh produce handling and logistics that will be held at Fruit Logistica, February 3-5 2016.

According to a press release by the event organisers, the sessions will address ten current issues relating to the logistics chain. It is where “producers, exporters and traders will find the information they need to help them take the right logistic decisions when it comes to transporting their goods.”

Alex von Stempel, an independent consultant in fresh produce logistics has designed and organised Logistics Hub and will moderate the event, to be held in the CityCube Berlin, Hall B, Stand C-04.

Session topics include:

  • Strategic Cold Chain Investments and examining new Outsourcing Potential
  • Reefer Claims: Addressing a Classic Clash of Interests
  • Focusing on the First Mile: Country and Produce Case Study Africa
  • Focusing on the First Mile: Country and Produce Case Study Latin America
  • Frozen Vegetables – Opportunities, Challenges and Threats
  • ‘Anything, anywhere, anytime’: What does this mean for the fresh produce sector?

For more detail: