Paddy rice is cultivated extensively in the northeastern lowlands and in the southern mountain valleys. Leading crops other than rice include coconuts, palm oil, sisal, tropical fruits (including pineapples, of which Hainan is China’s leading producer, lychees, mangoes, and longans), black pepper, coffee, tea, cashews, and sugarcane. In the early 20th century, Chinese emigrants returning from Malaysia introduced rubber trees to the island; after 1950, state farms were developed, and Hainan now produces most of China’s rubber.

Marine products contribute a significant share to the provincial economy. Shrimps, prawns, scallops, and pearls are raised in shallow bays and basins for local use and export. Grouper, Spanish mackerel, and tuna constitute the bulk of the catch from the rich offshore fishing grounds. Freshwater aquaculture also provides a large quantity of products, especially tilapia and climbing fish (Anabas testudineus), for the domestic and export markets.

Resources and power

Hainan has commercially exploitable reserves of more than 60 minerals. Iron, first mined by the Japanese during their occupation of the island during the Sino-Japanese War (1937–45), is among the most important. Also important are titanium, zirconium, manganese, tungsten, bauxite, molybdenum, cobalt, copper, gold, and silver. There are large deposits of lignite and oil shale on the island, and significant offshore finds of oil and natural gas have been discovered. The island is also one of China’s major producers of salt, with several large saltworks along its coasts. Virgin forests in the interior mountains contain more than 20 commercially valuable species, including teak and sandalwood. The province’s total forest coverage reaches some half of its land area, including more recently planted tree farms and rubber plantations.

Much of the island’s power-generating capacity is hydroelectric, including the Daguangba hydropower station (completed 1995), on the middle reach of the Changhua River. Most of the rest of the power is supplied by thermal plants. However, demand for power—notably for industrial expansion—generally has exceeded supply. In addition, the seasonal nature of many of the province’s rivers has periodically reduced hydroelectric output. Efforts have been made to utilize other energy sources, notably wind power. In addition, in 2009 a submarine power-transmission cable was completed between Hainan and Guangdong that taps into the electricity grid of mainland southern China and provides a larger and more reliable power supply for the island.

Manufacturing and services

Hainan’s industrial development was largely limited to the processing of its mineral and agricultural products, particularly rubber and iron ore. Since the 1950s, machinery, farm equipment, and textiles have been manufactured in the Haikou area for local consumption. Other major industrial sectors include offshore petroleum and natural gas exploitation, the manufacture of petrochemicals, automobile production, papermaking, and metallurgy (notably iron and steel).

With plenty of sandy beaches lining the bays along its coast, lush forested areas in the mountains, and other attractions, Hainan is a major tourist destination. Tourism became increasingly important to the provincial economy in the late 1990s, and many new hotels, restaurants, and other tourist facilities have been built since then.

Transportation

Before 1950 there were practically no transportation links with the interior of the island. The Japanese built a railroad from the iron mines in the southwestern mountains to the coast, which was later upgraded and extended in the 1960s and again in the 1980s around the southern coast to the western coastal city of Dongfang (Basuo). This line was further extended northeastward to Haikou (opened 2007). By the early 21st century, train ferries were in operation across the Hainan Strait, linking Haikou with the Guangdong mainland through Hai’an (at the southern tip of the Leizhou Peninsula) and farther north at Zhanjiang and Guangzhou (Canton). In addition, construction began in 2007 on a new rail line along the eastern coast from Sanya to Haikou.

The first roads on the island were built in the early 20th century, but no major road construction was undertaken in the mountains until the 1950s. Parallel north-south roads along the east and west coasts and through the interior of the island constituted most of Hainan’s road network until the early 21st century. Since 2000, express highways circling the island and linking the major cities have been completed.

Hainan has four major port facilities. The two largest are at Haikou and Sanya, the others being at Dongfang (Basuo Harbour) and Yangpu Harbour on the northwest coast. The freight-handling facilities of all four have been greatly improved. Both Haikou and Sanya airports provide air service for domestic and international destinations.