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China's Ministry of Commerce to explain the benefits of a Hainan free trade port

What are the manifestations of the Hainan Free Trade Port in the Comparative Analysis of the Advanced International Trade Port System? How is the construction of the Hainan Free Trade Port in general progressing? At a special press conference on the construction of pilot free trade zones during the 13th five-year plan, held by the Ministry of Commerce of China, the Port Department of the Free Trade Zone of the Ministry of Commerce gave detailed answers to the questions raised.

 

Secretary General Xi Jinping noted that a free trade port is the highest level of openness in the modern world. It is necessary to comply with high-level international economic and trade rules, promote the free and convenient flow of production factors, and build a free trade port with high quality and standards. In the first half of last year, the Party Central Committee and the State Council issued the General Plan for the Construction of the Hainan Free Trade Port. The policy and institutional system of the Hainan Free Trade Port focuses on the liberalization and facilitation of trade and investment, bringing together the core content of high-level international economic and trade rules and embodying the core characteristics of an advanced international free trade port.

 

With regard to trade in goods, introduce institutional liberalization and simplification mechanisms with “zero tariffs” as a key element. In the first phase of the construction of the Hainan Free Trade Port, a list of zero tariffs "one negative and three positive" will be issued. Two lists of raw materials, vehicles and yachts were recently published.

 

With regard to trade in services, liberalization and simplification policies with the main characteristics of “access and work” should be implemented, and a system of negative lists of cross-border trade in services will be introduced. Currently, the Ministry of Commerce is working closely with relevant parties to advance work on the negative list of cross-border trade in services at the Hainan Free Trade Port.

 

In terms of the business environment, the Hainan Free Trade Port has established a “single window” for international investment to provide “package” services to investors. Since the announcement of the overall plan for more than half a year, the relevant departments and Hainan Province have pushed ahead quickly, and the construction of the Hainan Free Trade Port is booming. Various departments have consistently introduced policies such as a new duty-free policy for the outer islands, supervision measures for the Yangpu port bonded area, the opening of the seventh freedom right, and a preferential income tax for businesses and individuals.

 

According to statistics from Hainan, 149,000 new businesses opened in Hainan in 2020, up 107.1% from a year earlier. Throughout the year, 1,005 enterprises with foreign capital were created, which is 197.3% more than last year. The capacity of the Yangpu port has increased significantly. According to Hainan statistics, Yangpu Port's throughput in 2020 reached 56.644 million tons, an increase of 12.9% over the same period last year, and 1.019 million standard containers were completed, up 44% from a year earlier. At the same time, the volume of foreign trade containers exceeded 203,000 TEU, which is 98.3% more than a year earlier.

 

In terms of positioning the Hainan Free Trade Port, it has the unique advantage of implementing a policy of the highest level of openness, so it was the first to implement the negative list model of cross-border trade in services, with more openness, more openness. flexibility and great testability. This helps to accelerate the construction of a high-level free trade port with Chinese characteristics. In terms of the characteristics of the Hainan Free Trade Port as a relatively independent geographical unit, the island could lead the establishment of the appropriate governance system necessary to implement the negative list of cross-border trade in services.

 

Based on the needs of Hainan Free Trade Port, we know that tourism, modern service industries and high-tech industries are the three main industries that Hainan is developing. It is not difficult to find a relationship between these three industries and cross-border trade in services. Either it is a very important development area in cross-border trade in services, or a very important carrier for the implementation of cross-border trade in services, so Hainan's negative list of cross-border trade in services will also contribute to the overall system of trade liberalization and simplification of procedures in the Hainan Free Trade Port. And the implementation of the policy system can promote the open development of the three main industries.

 

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