Global cross-border investments have been stifled by the Covid-19 pandemic. According to estimates from the Global Foreign Direct Investment (FDI) Trend Monitoring Report released by the United Nations Conference on Trade and Development in March of this year，global cross-border investment flows will fall by 30%~40% in 2020 and 2021. In June，the European Chamber of Commerce in China and Roland Berger Consulting jointly released the European Chamber of Commerce in China Business Confidence Survey 2020 and according to the report，41% of German-owned enterprises in China are considering delaying or canceling their investment decisions in China and only 30% will maintain their current investment strategy. The pressure to stabilize foreign investment should not be underestimated.

On June 1，the Master Plan for the Construction of Hainan Free Trade Port was issued in an effort to stabilize foreign investment. A number of foreign-funded enterprises that had been monitoring developments in the Hainan special economic zone have since moved ahead with their investment projects on the island. According to data from the Hainan Provincial Department of Commerce，foreign capital used by Hainan during the first five months of 2020 showed a year-on-year increase of 146.6%，amounting to US$319 million. A total of 154 new foreign-funded enterprises were registered in Hainan.

Investment Promotion

The release of the Master Plan has put Hainan in the global spotlight. Many enterprises，including foreign-funded ones，have begun considering investment opportunities in Hainan.