Article I In order to absorb domestic and foreign investment, accelerate the development and construction of Hainan Island, the formulation of these provisions. Article 2 The State shall implement a more flexible and open economic policy for the Hainan Special Economic Zone, and grant the People's Government of Hainan Province greater autonomy. Article 3 The State encourages domestic and foreign enterprises, other economic organizations or individuals (hereinafter referred to as investors) to invest in the development of Hainan Island, and to set up various economic and social undertakings. Article 4 The State protects the legitimate rights and interests of investors in accordance with the law, the investor's assets are not nationalized and expropriated, in special circumstances, for the interests of the social public **** the need for the investor's assets can be expropriated in accordance with the legal procedures, and to give the corresponding compensation.

Investors must comply with Chinese laws and regulations. Article 5 investors can invest in Hainan Island in the following ways:

(a) investment in the organization of Sino-foreign joint ventures, Sino-foreign cooperative joint ventures, foreign-funded enterprises (hereinafter referred to as foreign-invested enterprises), as well as other types of enterprises permitted by law. The operating period of each type of enterprise shall be agreed upon by the investing parties in the contract or approved by the competent authorities concerned;

(2) Purchasing stocks, bonds and other marketable securities;

(3) Purchasing, taking part in the operation of, or contracting or leasing the operation of, an enterprise;

(4) Investing in the operation of an enterprise by using other internationally accepted investment methods to carry out economic and technological cooperation and exchanges. Article 6: The land owned by the State in Hainan Island shall be utilized with compensation.

The People's Government of Hainan Province may, in accordance with the law, grant the right to use state-owned land to investors for a fee, and the term of a contract for the granting of the right to use the land shall be determined in accordance with the specific conditions of different industries and projects, with the maximum term of seventy years; if the use of the land needs to be continued after the expiration of the term, the term may be extended upon approval.

Investors may transfer the acquired land use rights with compensation in accordance with the relevant state regulations. Article 7 The mineral resources of Hainan Island shall be exploited for a fee in accordance with the law. The exploitation of specific mineral resources stipulated by the State shall be reported to the competent state authorities for approval, while the exploitation of other mineral resources shall be approved by the People's Government of Hainan Province. Investors are allowed to carry out exploration and exploitation in the form of joint venture, cooperative venture and sole proprietorship. Article VIII investors can invest in joint ventures, cooperation in Hainan Island to engage in ports, terminals, airports, highways, railroads, power plants, coal mines, water conservancy and other infrastructure construction, can also be wholly owned and operated special facilities, and can be invested in accordance with the relevant provisions of the State to operate and the facilities associated with the above various types of enterprises and services, and the implementation of integrated management. Article IX according to the needs of economic development, approved by the People's Bank of China, can be set up in Hainan Island, foreign-funded banks, Chinese-foreign joint venture banks or other financial institutions. Article 10 investment in Hainan Island to set up various economic and social undertakings, by the People's Government of Hainan Province for examination and approval. However, the scope of investment and the total amount of investment more than the State authorized the People's Government of Hainan Province for approval, shall be in accordance with national regulations and procedures for approval. Article XI of the enterprises authorized to organize as an investment in construction materials, production equipment and management equipment imported for the production and operation of raw materials, spare parts, packaging materials and other materials imported as well as their own transportation, office supplies, by the people's government of Hainan Province for approval. Article XII of the enterprises organized on Hainan Island (except for national banks and insurance companies), engaged in production, business income and other income, are levied at a rate of 15% of the enterprise income tax, and another 10% of the taxable amount of local income tax. Among them:

(a) Enterprises engaged in the development and operation of ports, terminals, airports, highways, railroads, power stations, coal mines, water conservancy and other infrastructure and enterprises engaged in the development and operation of agriculture, with an operating period of more than fifteen years, from the year of the start of profits, the first to the fifth year exempted from income tax, and the sixth to the tenth year of a 50% reduction in income tax;

(b) engaged in the industry, (b) Enterprises engaged in industry, transportation and other productive industries with an operating period of more than ten years shall be exempted from income tax for the first and second years from the year in which they start to make profits, and shall have their income tax reduced by half from the third year to the fifth year, and if they are recognized by the People's Government of Hainan Province as enterprises with advanced technology, they shall have their income tax reduced by half from the sixth year to the eighth year. (c) Enterprises engaged in productive industries such as industry and agriculture, after the expiration of the period of exemption and reduction of enterprise income tax according to the regulations, if the output value of the exported products of the enterprise reaches more than 70% of the output value of the enterprise's products in the current year, the enterprise income tax can be reduced by 10% in the current year. Income tax shall be exempted for the first year and reduced by half for the second and third years from the year in which profits start to be made.

The People's Government of Hainan Province shall decide on the reduction or exemption of the local income tax levied on the enterprises in Hainan Island. Article XIII of foreign investors in Hainan Island has not set up institutions, but the source of dividends, interest, rent, royalties and other income from Hainan Island, in addition to those exempted from income tax in accordance with the law, are subject to income tax at a rate of 10%. The People's Government of Hainan Province shall decide on the need to grant income tax reduction or exemption. Article XIV organized in Hainan Island, foreign-invested enterprises and foreign investors hold more than 25% of the shares of the enterprise have the right to import and export business, other enterprises approved by the People's Government of Hainan Province can also enjoy the right to import and export business, import the production of the enterprise, the operation of the goods necessary for the export of the enterprise's products.