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darcy surfing

CHINA'S FREE TRADE MECCA

A FILM BY YU GUO AND YVONNE CHANG

00:01:18-00:01:33

VO :

Nestled below the mainland in the South China Sea, Hainan is China’s tropical paradise.

Darci Liu moved here in 2007, attracted by the beautiful surf beaches and laid back lifestyle.

00:01:35-00:01:45

INT - DARCI

Surfing is like…it gives me direction where I want to go in my life journey.

00:01:48-00:01:51

VO: She is part of a growing surfers community...

00:01:52-00:02:22

Surfing is like the energetic, young spirit for Hainan, it brings a lot more personality to Hainan.Tourists come here they will have more things to do and it will also help to improve the economy for Hainan island.

And also, if there’s more people who like to surf, that means there’s also more people aware more about loving our ocean and protecting our environment.

00:02:26-00:02:34

VO:

Tens of millions of tourists now flock here each year. Darci has had to find secret spots to escape the crowds.

00:02:37-00:02:41

You don’t want to surf where it is super crowded.

So this is the best.

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Shin chun

Shao Hay’s

00:02:48-00:03:15

VO: Just A few kilometers away, lies the small fishing port of Xincun, … It’s home to the Tanka community, a group known as "sea nomads".

These days, instead of on boats, they live in a sprawling  offshore village built over the water.

Xiaohei’s family has lived here for generations.

00:03:16-00:03:41

INT - Xiaohei

This area is our floating village.    

INT - Xiaohei

Life is all on the sea. The fishermen get up and feed the fish. And then drive boats to go fishing. They don’t have much to do, sometimes they are just resting. Life here is simple.

00:03:45-00:04:00

VO: But the Tanka’s ancient way of life is changing,. 

A developing tourism industry is attracting young Tankas like Xiaohei away from fishing.

00:04:00-00:04:19

SYNC:

There used to be a lot of urchins and starfish here. Ever since tourists came, they have almost cleared out this area.

INT - Xiaohei

This area has changed a lot.

A lot of them left the sea and relocated to the land. It used to be the most crowded place here. 

00:04:27-00:04:52

VO:

Xiaohei’s uncle Liang and his family are trying to keep their community’s traditions alive.

He lives with his wife, 90-year-old mother, and three grandchildren in this house built over the water.

Liang used to be a fisherman.

But as he got older, he could no longer venture out to fish in the sea. 

He started breeding groupers three years ago.

00:04:53-00:04:59

SYNC:

Liang:

These fish are all mine.

3000 in total.

00:05:02-00:05:04

VO:

But the last year has been difficult.

00:05:07-00:05:23

Grandmother’s interview:

Because of the virus, the market price is quite low this year.

We don’t want to sell a lot or we will lose money.

00:05:28-00:05:40

VO:

Jin is the eldest of the three grandchildren. After school, she helps her grandparents prepare dinner.

She hopes to get good grades this year.

00:05:41-00:06:00

INT-Jin:

I want to go to a better secondary school. I need to study hard. My mum said, if I study well and go to a good university, the country will give me some money. I want to save the money for my family.

00:06:02-00:06:23

VO:

For Liang and his family, making a living is never easy, but   there are even bigger threats ahead for those who remain here..

The local government is planning to demolish the floating village to make way for new tourism infrastructure. One third of it has already disappeared.

00:06:25-00:06:59

INT-Xiaohei:

I don’t know exactly how many families were here. Maybe around 3000. Now the government is demolishing here, there are not many left...Only these parts you can see. We just heard it from the local government, but we don’t know what they will do exactly. We only know the village is being demolished. Only people from the government know what will happen. We fishermen don’t know anything.

00:07:02-00:07:21

VO：

Liang’s family face not only losing their home, but their only source of income.

The local government posted a demolition notice on the wall several months ago.

With land and property prices skyrocketing across the island, their future is uncertain.

00:07:22-00:07:29

Grandfather’s interview:

I can’t keep the fish if the house is demolished.

We can only see how it goes.

00:07:46-00:07:50

VO:

Xiaohei gave up fishing to ferry tourists on large boats.

00:07:51-00:08:16

INT-Xiaohei:

When I was 15, I started fishing with my uncle. And when I turned 16, I began going further out to sea to fish.

INT-Xiaohei:

Then my friend helped me get a  job here. I no longer go out fishing on the sea.

UPSOT XIAOHEI

I will be back after this ride.

00:08:22-00:08:29

VO:  

He takes tourists to a restaurant on the water,  where they can eat fresh seafood and see the Tanka’s floating traditions.

00:08:34-00:09:06

INT-Xiaohei:

My boss is building his own hostel. We can take customers  sightseeing.

I am a Tanka, and we are familiar with the neighbourhood.

INT-Xiaohei:

Usually ferry drivers can make around 7 dollars a tour for driving. A tour guide may make pretty much the same.

00:09:14-00:09:23

VO : XinCun village is a world away from how the Chinese government envisages Hainan - as the biggest free trade zone in the world.

00:09:24-00:09:29

SLOGANs on the streets:

"Work hard on building Free Trade Port with Chinese characteristics."  

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FTZ

Construction sites

CCG

00:09:31-00:09:45

VO: The government says the ambitious plans for Hainan are being overseen by President Xi Jinping himself…

By cutting taxes and tariffs, the aim is to make Hainan a free trade hub surpassing Hong Kong.

00:09:46-00:10:02

Xi Jinping, Chinese President, (April 2018)

The Central Committee of Chinese Communist Party has decided to support Hainan in building the whole island into a free trade zone, gradually exploring and steadily promoting the establishment of a free trade port with Chinese characteristics" (...)

00:10:06-00:10:24

Wang Huiyao, President of Center for China and Globalization,

The Hainan Free trade port is actually designed and directed by President Xi. And it is one of the largest Free trade port probably in the world. It's certainly the largest in China. So I think the plan is to usher in a new area of reform and opening up.

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Drone

Duty Free

Entrance

00:10:27-00:11:12

VO : Tourism is the most lucrative business on the island : about 65 million people visited Hainan in 2020.

Another 80 million are expected this year.

Tourists not only come to enjoy the beaches... but to shop.

There are 9 new duty free malls to choose from -

including this one -  the largest in the world.

More than 120  thousand square meters selling 350 international luxury brands .

VO:

Buyers can spend 15,000 dollars a year here on tax free products.

00:11:13-00:11:26

Voxes:

Tourist A:

Now we have spent more than $15,000 together.

Tourist B:

We almost used up our quota of cosmetic products, the quota is around 20-30 pieces.

Tourist C:

We will buy whatever we like. But we almost exceeded the quota this time. We can’t buy anymore.

00:11:12-00:11:55

VO:

Previously, shoppers might have travelled to Hong Kong to stock up on luxury goods, but after a crackdown  on pro-democracy protests in the former British territory, authorities are trying to lure them here, 500 km away.

VO:

Liang Xin manages this floor. But with so many people looking for bargains, sometimes she has to give a hand serving customers.

00:11:55-00:12：05

INT-Liang Xin

Sales Manager

Compared with the prices on brands’ official websites, in non-duty free markets, or even overseas markets, we are 10 to 15 percent cheaper.

00:12:08-00:12:16

SYNC:

Liang Xin: What’s your goal today?

Sales person: Daily sales target to exceed $23,000.

Liang Xin: You think you will achieve that?

Sales person: Yes.

Liang Xin: Nice. Keep it up.

00:12：16-00:12:32

INT - Liang Xin

Because of the pandemic, it’s been hard for domestic customers to go abroad. Plus, the offshore duty-free policy has been introduced, so more mainland customers are coming here.

00:12:35-00:13:29

VO :  Duty Free shopping is a golden goose for the economy. Chinese tourists spent more than 7.2 billion dollars on the island last year.

With that figure expected to be smashed this year, Hainan is already one of the most profitable duty free zones in the world.

VO : Three more duty-free malls are set to open their doors at the end of the year, injecting billions of dollars more into China’s economy.

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00:13:39-00:13:46

VO:

Foreign investment is also rapidly rising in Hainan.

Entrepreneurs from more than 80 countries have established businesses here.

SYNC:

Hello, I will take one dragon fruit.

Thanks. Bye bye.

….Elena is one of them. She fell in love with the island after moving here from Siberia three years ago.

00:13:46-00:14:03

INT-Elena:

We came to Hainan in 2018, and we decided to establish here a company focused on high technologies, almost airspace technologies, complex calculations with medical simulation and AI developments.

00:14:07-00:14:15

VO:

Elena’s company is located in a major Technological park, where more than 8000 companies operate.

00:14:20-00:14：59

INT-Elena:

We wish to have cooperation with Chinese companies. Because Russia and China, we are the biggest friends and global partners.

Local governments give serious support. They try to ask foreigners, foreign companies what can make their lives here easier, what can be beneficial for their work for their business and they give really serious preferences concerning Tax. 

SYNC:

Now we are going to the self-service area.

You can come here and pay taxes on time.

00:15:00-00：15:18

VO :

International schools, foreigner-only apartments, and a low 15% tax rate, are designed to attract entrepreneurs.

But there are drawbacks too.

As well as the language barrier, many businesses are put off by China’s censorship of the internet.

00:15:18-00:15:58

SYNC:

Taxation integration self-service tax terminal...

Unfortunately everything is in Chinese...

INT-Elena:

We need our business partners to come here. We need negotiations, we need more international community, and we wish communication among this community. Because when new companies come, they do not know those who already settled down here. Most of the international businesses, they do not speak Chinese.

But the papers that you need to sign even to open the company, they are all in Chinese. And that means that you have nothing to do but Only trust.

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00:16:02-00:16:20

VO :

The low tax rate is attracting a lot of domestic entrepreneurs too.

Mr. Wu owns an automobile company on the mainland but is planning to expand his business to Hainan.

His wife and daughter moved here 3 years ago and

he visits every couple of months.

00:16:21-00:16:47

INT-Father

I will eventually move my core business here to Hainan.

The cost will be reduced by 30%, there is a great potential for business.

It’s best if our family can stay together.

SYNC:

.

Hainan is going to replace Hong Kong in 5 to 8 years.

Much better than Dubai. It’s very good.

00:16：55-00:17:14

SYNC:

Wow, the water is so clear!

VO:

His wife Yan Fen and their daughter Ella became  permanent residents of Hainan in 2019.

SYNC：

Can I swim here?

they call it their little paradise…

00:17:20-00:17:43

INT - Yan Fen(Mother)

Beijing had such severe air pollution in 2017… we wanted to escape smog, and we wanted our daughter to live a healthier life here in Hainan.

When she went to school here, we found our lives really suit our future needs, and we could escape the great pressure of  Beijing’s educational system. We were happy and decided to settle down.

00:17:49-00:18:10

VO :

Clean air was not the only drawcard for them to move to Hainan. They want their daughter to study in an international school and play golf, an elite sport in China.

SYNC:

Mother: Slow down, slow down a bit.

It’s 8 o'clock in the morning and Ella is about to play her first competition of the year.

00:18:12-00:18:36

SYNC:

Finish the whole swing, even while you are practicing.

Just like you usually do.

INT - Yan Fen

Golf is considered a nobility sport here in China.

Less people play golf, so we think it’s

less competitive. That’s why I wanted her to do it.

for my daughter, it’s easier for her to get good grades too.

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00:18:51-00:18:57

VO: Yan Fen’s parents have flown in from the mainland for a visit. they spend several months here every year.

00:18:59-00:19:10

INT-Mother

Mother: Most  people are like us. Fathers are not here 

all year, mothers and grandparents help take care of the

children.

00:19:11-00:19:25

VO: According to official data, about 4 and half million retirees flock to the island every/each winter,. Equivalent to half of the local population…

Many have bought newly-built apartments.

00:19:26-00:19:43

SYNC:

Grandfather:

The air quality is so nice, the environment of this residence is very nice, and the relations among people living here are  good too.

SYNC:

Grandfather: Oh, you’re 11 years younger than me.

You are just retired aren't you?

Neighbor:  Yes.

00:19:46-00:20:04

VO:

Every week, Yan Fen takes her parents to shop in the local markets

SYNC:

Mother:

There is a lot of fresh seafood in the Xincun market.

Grandfather: Yes, we go to the market very often.

The seafood they sell in the morning are freshly-caught by fishermen.

00:20:16-00:20:21

VO:

Some locals blame the new arrivals for pushing up the cost of living on the island.

00:20:25-00:20:44

SYNC:

Grandfather: How can I tell how fresh it is?

Seller: We are experts in seafood.

Grandfather: How much for a kilo?

Let’s go.

How much is it?

How much is it?

00:20:47-00:20:54

VO:

In just a few years, the tropical island of Hainan has transformed into a bustling metropolis.

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00:21:03-00:21:11

VO:

An hour’s drive away in the surfing community at Sun Moon Bay, Darci has seen these changes first hand.

00:21:13-00:21:29

INT-Darci

There was no high-speed railways when I first came here. Now the high-speed railway network is all over the island, connecting every city. And this place here was nearly a desert, there was nothing except a sandy beach. Now the whole beach has fully developed.

00:21:30-00:21:34

she worries about the cost of development to the natural environment

00:21:36-00:21:56

The only factor which can lead to pollution is the construction.

I think we should pay more attention to make it sustainable, to not  make so much construction waste, no more artificial islands.

00:21:58-00:22:36

VO : but  the government seems to have the opposite vision. It  has already built 4 artificial islands in Hainan, and is planning more, including this one - called Ocean Flower , set to be the most expensive man-made island in the world at a cost of 24 billion dollars…

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VO: Back at the floating village of Xincun, Jin is taking care of her younger siblings.

What she wants most is to stay with her family.

00:22:38-00:23:25

INT - Liang Shijin

If they demolish our home, I will go with my grandparents wherever they go. But if they don’t have anywhere to go, or if it’s  too far from the school, I have to stay with my grandmother-in-law. And my younger brother will be taken care of by our grandparents.

My uncle’s family are residents. They have nothing to do with tourists.He knows everything on the sea, but he doesn’t know how to deal with anything on the land.  Tanka people are not well-educated and we are not smart.

00:23:38-00:23:51

VO:

Today is Jin’s first day of the new semester. After the summer, she’s due to start  secondary school.

But for now, she’s not sure where that will be, or even where she’ll be living.

00:23:53-00:24:10

INT - Liang Shijin

 I get up at 6am and get ready at 6:30am everyday. I have to wait to take a boat.

We don’t have any rules living on the sea.

I like living on the sea, I am happy. I feel free 

00:224:17-00:24：42

VO:

Living in harmony with the sea has always given the Tanka people everything they need.

But their way of life is fast becoming a casualty of China’s rush to transform Hainan.

For Jin and her family, the island of their youth will soon be just a memory.