By Tao Xing

The construction of the Songtao Reservoir in Danzhou， a city on the tropical island province of Hainan， started in June 1958. Those working on the project calculated that they would need to build a dam 170 meters high in order to protect areas downstream from annual floods. However， lacking heavy equipment and materials such as concrete， the team had to complete the arduous task by hand from successive layers of rammed earth.

The passion and dedication of the workers saw them finally reach the required height more than a year later in August 1959. Today， the 3.3-billion- cubic-meter reservoir is the largest body of fresh water in Hainan and serves as the primary source of drinking and irrigation water for its northern and northwestern areas.

More importantly， the hardworking spirit embodied by the project， has become an important legacy for Hainan. With the development of a free trade port （FTP） across the island in full swing， it is still inspiring the local people.

During the launch ceremony of a seven-day media tour of Hainan on July 16， Chen Jiafen， Executive Vice President of Hinews， a news portal in Hainan， told reporters that since the release of the master plan for the Hainan FTP on June 1， 2020， the island has made achievements in multiple areas， including bringing in talented people and improving the business environment.

Greater openness

Hainan aims to become a globally influential FTP by the middle of the century. “The policies the Central Government has put in place in Hainan are unprecedented，” Zhang Jianping， Director General of the Beijing-based China Center for Regional Economic Cooperation， told Beijing Review.

The master plan designates a number of encouraged industries， which will benefit from preferential policies and other supporting mea- sures. One of them stipulates that enterprises from encouraged industries that are either incorporated in or operating in the FTP enjoy a corporate income tax rate of 15 percent. Currently， China imposes a 25-percent general corporate tax rate with exemptions for a few industries such as semiconductors. Similarly， individual income tax for prominent or urgently needed professionals working in the FTP is also capped at 15 percent，compared with the national ceiling of 45 percent.

“These two policies are helping attract both domestic and international investors，” Zhang said.

According to Hainan Daily， 750 major projects with a total investment of 244.4 billion yuan （$38.2 billion） have been launched in the Hainan FTP since last July. Over 375，000 new market entities were established in the same period， up 44.33 percent from a year earlier. Local authorities announced on June 20 that in the first half of the year， paid-in investment in Hainan reached approximately $950 million， an increase of 623.6 percent year on year.