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Foreign journalists witness outstanding development in Chinas Hainan

· 4 min read

Foreign journalists witness outstanding development in China’s Hainan

HAINAN, China - During a one-week trip to China’s Hainan province, journalists from Asian and Eurasian countries witnessed the prominent development process in the province.

Foreign journalists witness outstanding development in China’s Hainan

In the trip, which was arranged by China International Press Communication Center (CIPCC), the journalists visited three cities in Hainan island province. The first city was Boao, the second was Sanya, and the third one was Haikou, the capital of Hainan.

The following is an introduction to Hainan Free Trade Port:

I. What is Hainan Free Trade Port:

Hainan is China’s largest economic special zone. In April 2018, the Central Committee of the Communist Party of China decided to build Hainan Island into a free trade pilot zone, supporting Hainan’s gradual exploration and steady advancement of the construction of a Chinese-style free trade port, and establishing a policy and institutional system for free trade ports in stages and steps.

The free trade port is hailed as the most advanced form of openness in the world today. The construction of a free trade port in Hainan represents China’s strategic choice to explore and promote a higher level of opening up, demonstrating China’s unwavering determination and confidence in advancing opening up.

II. What are the preferential policies of Hainan Free Trade Port:

The preferential policies of the Hainan Free Trade Port mainly include the following aspects:

In implementing trade liberalization and facilitation: In terms of commodity trade, gradually realize the free and convenient entry and exit of overseas goods in the Hainan Free Trade Port. In terms of service trade, implement a negative list system for cross-border service trade to promote the liberalization and facilitation of cross-border service trade.

In implementing investment liberalization and facilitation: Greatly relax market access and foreign investment access, implement a commitment system for market access, strictly implement the principle of “access unless prohibited,” and comprehensively implement a “minimum approval” investment system. Innovate and improve the investment freedom system, promote the implementation of facilitation policies in various aspects such as enterprise establishment, operation, deregistration, and bankruptcy.

In implementing free and convenient cross-border capital flow: Implement more convenient cross-border investment and financing policies, support the priority implementation of financial industry opening-up policies in the Hainan Free Trade Port.

In implementing free and convenient entry and exit of personnel: Implement more open policies for high-end industrial talents and residence permits, and create a gathering place for talents. Further relax restrictions on the free entry and exit of personnel and implement more convenient visa-free measures.

In implementing free and convenient transportation: Promote the construction of the New International Land-Sea Trade Hub in western China. Further relax airspace control and route rights restrictions, pilot the opening of the seventh freedom, and encourage domestic and foreign airlines to increase capacity development.

In implementing orderly and secure flow of data: Orderly expand the opening of communication resources and business, explore and carry out pilot projects for international internet data exchange, and actively cultivate and develop the digital economy.

In implementing tax policies with international competitiveness: Gradually promote the implementation of the “zero tariff” policy for imported goods, and gradually optimize corporate income tax and individual income tax policies. Currently, enterprises engaged in encouraged industries registered and substantially operating in the Hainan Free Trade Port are subject to a corporate income tax rate of 15%. For high-end talent and in-demand talent working in the Hainan Free Trade Port, the portion of their personal income tax that exceeds an actual tax burden of 15% is exempted from tax.

III. Construction Schedule

The construction of the Hainan Free Trade Port is divided into several stages:

By 2025, the initial establishment of a policy and institutional system for free trade ports focused on trade liberalization and investment facilitation.

By 2035, the institutional system and operational model of the free trade port will be more mature. The basic framework of trade and investment rules will be characterized by freedom, fairness, rule of law, and high-standard process supervision. This will achieve trade liberalization and facilitation, investment liberalization and facilitation, free and convenient cross-border capital flow, free and convenient entry and exit of personnel, free and convenient transportation, and secure and orderly data flow. It will become a new highland for China’s open economy.

By the middle of this century, a high-level free trade port with strong international influence will be comprehensively established.