Hainan Free Trade Port

Hainan Free Trade Port 海南自由贸易港
Free-Trade Port
Satellite photo of Hainan
Country	China
Province	Hainan
Area
• Total	35,354 km2 (13,650 sq mi)
Population
• Total	9.343
• Density	0.00026/km2 (0.00068/sq mi)
Time zone	UTC+8 (China Standard)
Website	www.hnftp.gov.cn

Hainan Free Trade Port is a free trade port currently being planned and constructed in Hainan, China. As an offshore island, Hainan is also the largest special economic zone in the People's Republic of China (PRC). It is regarded as a special area for China to comprehensively deepen economic reform and experiment with the highest level of opening-up policies. Hainan Free Trade Port is not a seaport in the usual sense, but the entire Hainan Island is regarded as a special economic development area.

History

On April 13, 2018, Xi Jinping, General Secretary of the Chinese Communist Party, announced on behalf of the CCP Central Committee at a conference celebrating the 30th anniversary of Hainan. ^[1] General Secretary Xi Jinping required that Hainan should focus on supply-side structural reform and build a free trade port with Chinese characteristics. ^[2] On October 16, 2018, the State Council approved the establishment of the Hainan Free Trade Zone and issued the “Overall Plan for the China (Hainan) Pilot Free Trade Zone”. ^[3]

September 16, 2019 Hainan Provincial Party Committee Secretary Liu Cigui: Free Trade Port Law is on the legislative agenda

On June 1, 2020, the CCP Central Committee and the State Council of the People's Republic of China issued the "Overall Plan for the Construction of Hainan Free Trade Port", ^[4] proposing the principles of zero tariffs and low tax rates, increasing the off-island duty-free shopping quota to 100,000 yuan per person per year, and expanding the types of duty-free goods. ^{[5] [6] [7]}

On June 3, 2020, 11 key parks held a ceremony to mark their opening. Among them, the key modern service industry parks include Haikou Jiangdong New Area, Haikou Comprehensive Bonded Zone, Sanya Central Business District, and Boao Lecheng International Medical Tourism Pilot Zone; the high-tech industrial parks include Yangpu Economic Development Zone (Dongfang Lingang Industrial Park, Lingao Gold Medal Port Development Zone), Haikou National High-tech Industrial Development Zone, Sanya Yazhou Bay Science and Technology City, Wenchang International Aerospace City, Hainan Ecological Software Park, and Fuxing City Internet Information Industry Park; the tourism industry parks include Lingshui Li'an International Education Innovation Experimental Zone. ^[8]

June 8, 2020 Lin Nianxiu, deputy director of the National Development and Reform Commission: Hainan Free Trade Port will not have an impact on Hong Kong

On June 30, 2020, the Ministry of Finance and the State Administration of Taxation of the People's Republic of China issued the "Notice on Preferential Corporate Income Tax Policies for Hainan Free Trade Port" and the "Notice on Personal Income Tax Policies for High-end and Shortage Talents in Hainan Free Trade Port". The "Notice on Preferential Corporate Income Tax Policies for Hainan Free Trade Port" proposed that enterprises in encouraged industries registered and operated in Hainan Free Trade Port shall be subject to a reduced corporate income tax rate of 15%. Enterprises in the tourism, modern service and high-tech industries established in Hainan Free Trade Port shall be exempted from corporate income tax on income from new foreign direct investment. The "Notice on Personal Income Tax Policies for High-end and Shortage Talents in Hainan Free Trade Port" proposed that talents who meet the conditions for tax reduction and exemption working in Hainan Free Trade Port shall be exempted from the portion of their actual personal income tax burden exceeding 15%. ^[9]

On August 24, 2020, Hainan published the 2020 Hainan Free Trade Port Investment Guide in Chinese and English, providing policy support for international institutions and individual investors. ^[10] On September 13, 2020, the third batch of Hainan Free Trade Port construction projects started construction. ^[11] On November 8, 2020, the ninth batch of institutional innovation cases for the Free Trade Port was released, involving matters such as “one-stop service” for ship registration and the reduction of approval procedures for low-altitude flights. ^{[12] [13]} On December 1, 2020, the first zero-tariff commodity list of Hainan Free Trade Port was officially implemented. ^[14] On December 25, the second zero-tariff commodity list was released. ^[15]

June 8, 2020 Hainan Provincial Party Committee Secretary: Hainan cannot become a real estate processing factory

On December 31, 2020, China's National Development and Reform Commission and the Ministry of Commerce released the 2020 version of the negative list for foreign investment access to the Hainan Free Trade Port, which abolished the prohibition on foreign investment in the exploration, mining and beneficiation of rare earths, radioactive minerals and tungsten in the mining industry. ^[16]

On March 4, 2021, the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation jointly issued the “Notice on the “Zero Tariff” Policy for Self-Used Production Equipment in Hainan Free Trade Port”, which stipulates that enterprises registered in Hainan Free Trade Port and with independent legal person status will be exempt from customs duties, import value-added tax and consumption tax on imported production equipment for their own use, except for goods that are clearly not exempted from tax by laws and regulations and relevant provisions, goods prohibited from import by national regulations, and equipment listed in the “Negative List of “Zero Tariff” Self-Used Production Equipment in Hainan Free Trade Port” attached to the notice. ^[17]

On June 10, 2021, the 29th meeting of the Standing Committee of the 13th National People's Congress passed the Hainan Free Trade Port Law of the People's Republic of China, which determined to establish and improve the Hainan Free Trade Port customs supervision special zone system with closed-off customs operations on the entire island. On the basis of effective supervision in accordance with the law, a goods trade management system with free entry and exit, safety and convenience will be established, and service trade management measures will be optimized to achieve trade liberalization and facilitation. ^[18]

From September 2021, the Hainan Free Trade Port International Ship Regulations will be officially implemented. On July 26, 2021, the “Special Administrative Measures for Cross-border Trade in Services in Hainan Free Trade Port (Negative List) (2021 Edition)” was released. ^[19] This is the first negative list released by China in the field of cross-border trade in services. ^[20] On September 29, 2021, the 30th meeting of the Standing Committee of the Sixth People's Congress of Hainan Province reviewed and approved the Hainan Free Trade Port Fair Competition Regulations and the Hainan Free Trade Port Anti-Consumer Fraud Regulations. ^[21] On November 20, 2022, the first foreign-invested enterprise cluster in Hainan Free Trade Port serving foreign-invested enterprises was unveiled in Qiongshan District, Haikou, and six foreign-invested enterprises signed letters of intent to move in at the same time. ^[22]

Politics

Legislative and executive powers of Hainan Province

The Hainan Free Trade Port Law of the People's Republic of China grants the Hainan Provincial People's Congress and its Standing Committee the power to legislate on certain matters. Based on the laws and regulations of Hainan Province and the legislative power of the Special Economic Zone, the Hainan Free Trade Port can exercise laws and regulations that are different from those of other regions in mainland China and local government regulations; it will establish relatively independent and reform-oriented local laws based on the national laws. The laws that have been introduced so far involve environmental protection, anti-smuggling, big data development and application, Special Economic Zone Lawyers Regulations, Special Economic Zone Certified Public Accountants Regulations, Special Economic Zone Anti-Drug Regulations, and laws on the quick and simple review of company registrations. ^[5]

The Hainan Provincial People's Congress and its Standing Committee have the power to independently formulate and implement Hainan Free Trade Port regulations in accordance with the Hainan Free Trade Port Law of the People's Republic of China. Local regulations and commercial dispute mechanisms will become the core of resolving and building the free trade port countermeasure system. The plan also allows Hainan Province to participate in international commercial arbitration and mediation in compliance with the provisions of the Constitution and current national laws and policies. ^[5]

Big data social governance system

Hainan Province will establish a centralized provincial government data center and a unified "government cloud" across the province, using public networks, data centers, and software and hardware resource services as carriers to provide big data governance policy support to the government. Five basic databases will be built, including population database, legal person database, spatial geographic database, electronic certificates, and credit information. ^[23] In order to realize the social governance system of big data, Hainan Province has established a statutory body, the Big Data Management Bureau, which has implemented an enterprise-based and market-oriented system and is responsible for the construction and operation of the province's e-government infrastructure, public platforms and common platforms. In May 2018, Hainan Province designated the "Hainan Province Public Information Resources Management Measures" to regulate the management of public information resources from cataloguing, collection, sharing, application, opening, information security and supervision. In July and September 2019, it issued the "Hainan Province Public Information Resources Safe Use Measures" and the "Hainan Province Big Data Development and Application Regulations" respectively. ^[23]

Free Trade Port Administration

Leaders of the Free Trade Port Administration and Related Institutions

Consulate General	State Council	Hainan Provincial Committee of the Chinese Communist Party (Secretary of the Provincial Committee: Feng Fei )		Hainan Provincial People's Government
Free Trade Port Institutions	Department of Regional Coordination and Development, National Development and Reform Commission ( NDRC )	Comprehensively Deepening Reform Committee (with Deepening Reform Office under it)	Free Trade Port Working Committee (with the Free Trade Port Working Committee Office)
Institutional Leaders	Guo Lanfeng (Director)	Battelle (Director)	Shen Danyang, Bater, Ni Qiang (Directors)	Liu Xiaoming (Governor)
Related positions held by leaders	not applicable	Member of the Standing Committee of Hainan Provincial Committee of the Chinese Communist Party Secretary-General of Hainan Provincial Committee of the CCP Director of the General Office of Hainan Provincial Committee of the CCP	Shen Danyang Member of the Standing Committee of Hainan Provincial Committee of the CCP, Vice Governor of Hainan Provincial Government Ni Qiang, Vice Governor of Hainan Provincial Government	Deputy Secretary of Hainan Provincial Committee of the CCP
The State Council deliberates and coordinates relevant agencies	Ministry of Foreign Affairs Ministry of Education Ministry of Science and Technology Ministry of Industry and Information Technology Ministry of Finance Ministry of Human Resources and Social Security Ministry of Natural Resources Ministry of Ecology and Environment Ministry of Transport Ministry of Agriculture and Rural Affairs Ministry of Commerce Ministry of Culture and Tourism National Health Commission People's Bank of China State Administration for Market Regulation State Drug Administration State Intellectual Property Office Civil Aviation Administration of China General Administration of Customs State Administration of Taxation State Financial Supervision and Administration Bureau Securities and Futures Commission State Administration of Foreign Exchange State-owned Assets Supervision and Administration Commission of the State Council
Hainan Province related institutions	Party and government organs: General Office of the Hainan Provincial Committee of the Chinese Communist Party Legislative body: Hainan Provincial People's Congress (and its Standing Committee ) Administrative organ: General Office of the People's Government of Hainan Province (and its subordinate departments, directly affiliated special agencies, directly affiliated agencies, departmental management agencies and municipal and county governments) Judicial organ: Hainan Provincial High People's Court Supervisory authority: Hainan Provincial Supervisory Committee Political consultation body: Hainan Provincial Committee of the Chinese People's Political Consultative Conference Procuratorial organ: Hainan Provincial People's Procuratorate Hainan Branch of the People's Bank of China Hainan Free Trade Port Construction Expert Advisory Committee China (Hainan) Pilot Free Trade Zone (Free Trade Port) Advisory Committee Hainan Provincial Big Data Administration Hainan Provincial Government State-owned Assets Supervision and Administration Commission

Transportation

Shipping

thumb|On September 28, 2020, the first intercontinental route of Hainan Free Trade Port was opened to fill the gap in shipping routes with the Philippines and Australia In order to connect with the Hainan Free Trade Port, on January 1, 2017, the construction of Xuwen Port in Zhanjiang City, Guangdong Province officially started. The port includes 16 5,000-ton passenger ro-ro berths and 1 5,000-ton hazardous goods dedicated ro-ro berth. The first phase of the Xuwen Port project has a designed throughput capacity of 3.2 million vehicles and 17.28 million passengers. It will become a major maritime and passenger transport hub connecting the two sides of the Qiongzhou Strait. At the same time, the port is the world's largest existing passenger ro-ro ferry terminal, and the ferry time from Zhanjiang, Guangdong to Haikou will be shortened to one hour. ^[24]

On September 28, 2020, Hainan Free Trade Port's first intercontinental transoceanic route (Yangpu-South Pacific-Australia) was opened. ^[25]

Aviation hub

According to the Hainan Free Trade Port policy, Hainan Aviation Hub can enjoy the seventh freedom and the fifth freedom. ^[26]

Haikou Meilan International Airport launched its second phase expansion project after the release of the Free Trade Port policy. The airport is located in Haikou Jiangdong New District. The new airfield is rated 4F, with a 3,600-meter runway, two parallel taxiways and 61 parking stands, including 35 close parking stands and 36 jet bridges. The new T2 terminal has an area of approximately 296,000 square meters and is equipped with the largest airport duty-free commercial area in mainland China. ^[26]

Infrastructure construction

Hainan is currently building a series of transverse roads on the island, including the GS360 Wenchang to Lingao Highway. On the basis of the existing three ring roads around the island, the highways from Wanning to Yangpu, Wenchang to Lingao, Danzhou to Baisha, and Wuzhishan through Baoting to Sanya Haitang Bay will be expanded to form an island ring road and city-linking transportation network, integrating the industrial chain and trade transportation roads; this series of projects is also one of the 10 billion-level key projects of Hainan Free Trade Port. ^[27]

In addition, Hainan also plans to build a regional tourism route called the "National Coastal Scenic Road No. 1", which will build a coastal expressway based on the east–west expressway on Hainan Island to provide infrastructure support for tourist areas across Hainan Island. ^[27]

Economy

On March 27, 2021, the first regular intercontinental cargo route of Hainan Free Trade Port was launched

Hainan Free Trade Port mainly focuses on 12 industries in four categories, namely tourism, modern service industry, high-tech industry and natural resource mining and trade industry. ^[28]

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