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My Take
Opinion
Alex Lo

My Take | Small Hainan takes on huge strategic role

  • In China’s search for new sources of economic growth, naval expansion and modernisation, and dominance in the South China Sea, Hainan is now the key

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The Yazhou Bay science and technology city in Sanya, south China’s Hainan Province. Photo: Xinhua

Developments in the island province of Hainan get more interesting every year. It’s sometimes observed that it has not caught up with economic growth in southern China, especially the Greater Bay Area, despite its strategic position in the north of the South China Sea.

But it may become the most important strategic province to the nation – because it is home to the most advanced naval hardware being built; it is key to defending China’s claims over maritime territories contested by at least four other countries and Taiwan.

In this context, it’s even more intriguing that the 35,000 sq km island at the southernmost tip of the country is being turned into the world’s largest free-trade port with low taxes and more relaxed regulations to match, under a plan pushed by President Xi Jinping himself.

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As a free port and a naval hub, Hainan will likely become a main marker of Xi’s rule and its legacy, much like Shenzhen was for Deng Xiaoping. The Yulin Naval Base has been rapidly expanded in just the past two years. It can now reportedly berth up to 16 submarines, both conventional and nuclear, and host two aircraft carriers.

Its proximity to the Paracel and Spratly archipelagos makes it the ideal jump-off point for naval operations. As well, with the submarines, it can coordinate underwater detection and surveillance with advanced remote sensors.

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