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SCIO press conference on deepening reform and opening-up across the board, accelerating the development of a free trade port with Chinese characteristics and global influence

0 Comment(s)Print E-mail China.org.cn, April 16, 2024
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Xing Huina:

Now, the floor is open for questions. Please state the news organization you represent before asking your questions.  

People's Daily: 

During the past six years, Hainan has been working on building the China (Hainan) Pilot Free Trade Zone and has carried out exploratory work on setting up a free trade port with Chinese characteristics. Could you please introduce the current situation of the Hainan FTP construction? Thank you.

Liu Xiaoming: 

Thank you for your question; I will answer it. These years, Hainan province has resolutely implemented the decisions and arrangements made by the CPC Central Committee and the State Council. Following the requirements of the master plan of the Hainan FTP, we have made efforts quickly and steadily to shape up the FTP, mainly focusing on the following four aspects. 

First, the accelerated release of policy benefits has made Hainan a hotbed for investment. Under the working mechanism of "central coordination, departmental support, and provincial implementation," the policy framework of the Hainan FTP has taken shape, bringing tangible benefits to businesses and the public. For instance, the three zero-tariff lists for imported raw and auxiliary materials, means of transportation and yachts, and self-use production equipment have resulted in a cumulative import value of 20.2 billion yuan and tax reductions of 3.81 billion yuan. The zero-tariff policy for domestically sold products with no less than 30% value-added from processing has been expanded to key industrial parks across the province, resulting in a cumulative domestic sales value of 4.71 billion yuan and tax reductions of 420 million yuan. In 2023, the number of offshore duty-free shopping visitors and the amount spent increased by 59.9% and 25.4%, respectively, year on year. Currently, foreign investment in Hainan continues to increase, with the number of newly established foreign-funded enterprises growing by 65% annually since 2018, totaling 6,543 enterprises.

Second, Hainan has been steadily expanding institutional opening-up by taking the lead in experimenting with high-standard economic and trade rules. Leveraging the advantages of various policies from the Regional Comprehensive Economic Partnership (RCEP) and the FTP, we have pioneered the implementation of international high-standard economic and trade rules. Hainan has introduced a series of new measures in areas such as trade in services, digital trade, intellectual property protection, and cross-border data flows. To address policy implementation bottlenecks, pain points of lack of application scenarios, and difficulties in achieving noticeable effects, Hainan has promoted cross-department, cross-domain, and cross-regional institutional integration innovation through in-depth planning. It has released a total of 16 batches of 140 institutional integration innovation cases, among which 11 have been replicated and promoted nationwide by the State Council, and six have been commended nationally.

Third, Hainan has comprehensively prepared for the initiation of independent customs operations and steadily advanced toward higher standard opening-up. In 2023, we launched the preparations for independent customs operations, vigorously implementing three lists concerning tasks, projects, and stress tests with strenuous efforts. This year marks a pivotal year for advancing customs closure operations. We will complete the construction of hardware and software for independent customs operations and conduct comprehensive, whole-process stress tests on policy systems, facilities, system platforms, and management capabilities. Simultaneously, we are striving to create a first-class business environment characterized by the rule of law, internationalization, and facilitation, to ensure smooth initiation of independent customs operations as scheduled.

Fourth, Hainan has made solid and effective progress in risk prevention and control, with significant improvements in governance systems and capabilities. Adhering to the principle that effective management allows for greater opening-up, we have established contingency plans, improved mechanisms, and made regular adjustments to address potential risks associated with the implementation of various policies in the FTP. Through initiatives such as Smart Hainan and Hainan Credit, we will be able to identify, prevent, and manage risks, as well as firmly guard against systemic risks. Thank you.

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