ABSTRACT
One of the more remarkable features of the reform era has been the establishment of Hainan Province and its development as a Special Economic Zone (SEZ). The announcement of Hainan Province in 1988 was the establishment of the first new provincial-level unit to be created in the People’s Republic of China since the Cultural Revolution, and effectively since 1952. 1 Largely as a result of preferential policy from Beijing and even allowing for the fairly low point of departure, Hainan Province has experienced high economic growth rates as well as a high rate of foreign investment. A laissez-faire economy has emerged which has experienced some spectacular scandals, including a well-known apparently officially sanctioned speculation in the resale of foreign vehicles to the mainland during 1984. 2
