Nicholas Lee. (Source: hinews.cn)

In the past, foreign companies interested in Hainan mainly asked whether they should invest there. Today, more investors focus on how to establish and manage a business. Since the Hainan Free Trade Port (FTP) implemented island-wide special customs operations, attention has shifted from policy and investment-environment considerations to the hands-on aspects of starting operations.

Nicholas Lee, a Malaysian Chinese entrepreneur, founded Sealink Global Consulting (Haikou) Co. Ltd. In 2024, his team began operating in Hainan, offering market connections and business setup services to Chinese companies expanding into Southeast Asia and foreign businesses entering Hainan.

Lee emphasizes that the difficulties of cross-border investment extend beyond simply understanding policies. Companies must also understand how policies are applied, build connections with local partners, and turn investment ideas into operations. For example, when a Malaysian healthcare firm sought manufacturing collaborations in Hainan, Sealink facilitated links with local firms, resulting in an initial original equipment manufacturing (OEM) cooperation agreement.

Foreign investors are now asking more targeted questions. Lee says their concerns center on three areas: how businesses can benefit from Hainan FTP tax policies; how to manage foreign nationals' entry, work and residence procedures; and how to make cross-border payments in compliance with regulations. The Hainan FTP's multi-functional free trade account (EF Account) has also become a frequent topic of inquiry.

These evolving questions reflect a shift from exploring opportunities to building concrete business plans. For companies entering a new market, preferential policies are only the starting point; building sustainable operations, attracting talent, and getting businesses up and running are just as important.

As investors' needs develop, cross-border service providers are broadening their offerings from basic services such as company registration to include market entry strategies, branding, distribution channels, legal compliance, local recruitment, and business matchmaking. Lee suggests that increased collaboration among professional service providers can help foreign companies lower information and communication costs while more efficiently establishing business networks in Hainan.

The shift from asking whether to enter Hainan to considering how to establish a presence reflects a broader trend: the Hainan FTP is drawing foreign companies that are transitioning from exploratory visits to establishing full operations.