Ever since China carried out its reform and opening-up policy, especially during the 10 years of development after the establishment of Hainan Special Economic Zone, the economy in Haikou has made dramatic progress by taking advantage of the preferential policy of special economic zone, complying with international practice, adhering to reform, attaching great importance to creation, rapidly establishing the mechanism of a market economy, strengthening communications at home and abroad, attracting foreign capital widely and increasing investment. By now, Haikou has been upgraded to one of the leading cities in China. Economic development has consolidated the foundation since the adjustment of the economic structure in 1998. The economic growth rate reached 8.6% and GDP amounted to RMB 11.009 billion in 1998. Compared with the statistics in 1978 before reform and opening up, Haikou realized 17.7 times growth in GDP, 5.8 times in per capita GDP, 301 times in fixed assets investments, 46 times in fiscal revenue, 25 times in industry and 4.2 times in agriculture. Compared with the statistics in 1987 before the founding of the Special Economic Zone, Haikou achieved 47.5 times growth in electricity generation, 5 times in citizen's income. The actual amount of foreign capital investment reached US$4.57 billion from 1987 to 1998.