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China unveils details of Hainan's free port development

The government said that the port project will be implemented in two stages

HAIKOU, June 9. /TASS/. The Chinese authorities presented the key aspects of creating Hianan's free trade port and the scheme of its development dubbed "6+1+ 4", stated the message of the State Committee for Development and Reform published on the Chinese State Council's press service website on Monday .

The numbers in the scheme reflect one of the key aspects of the “General Program for the Establishment of Hainan's Free Port” unveiled by the government on June 1. In particular, “6” implies six main points of the port's openness policy: promotion of trade freedoms, investment, transportation, financial and human capital flows, as well as a safe and orderly data flow. According to the state plan, a regime of liberalization and favorable treatment with zero customs duties will operate here for trade in goods, and a policy of full market access and permission to conduct business activities will be in place for trade in services.

"1" stands for the creation of an integrated and modern production system based on the advantages and characteristics of this tropical island. In particular, the Chinese authorities plan to focus on the active development of tourism, the modern service industry and the high-tech.

"4" indicates the formation of four socio-political mechanisms within which the Hainan's port will operate. These are systems of effective public administration, the rule of law, liberal taxation, and the prevention of socio-economic risks, including those related to environment and health.

The government said that the port project will be implemented in two stages. By 2025, the Chinese authorities plan to build a basic system of free trade and investment on Hainan — this period of preparations the government sees as "laying the foundation." By 2035, six key points of the liberalization policy should be fully implemented. The program of the party and the State Council emphasizes that it is necessary to create a strong and influential high-level international free port on the Island of Hainan.

In April 2018, President Xi Jinping said that the Chinese authorities intend to actively involve Hainan in globalization and to draw foreign investors to the island province. By 2050, according to the authorities, the island should become a unique international cluster with an advanced economy, developed tourism, top-notch scientific, technical and financial potential, and modern medicine. The branches of the best universities and offices of the most powerful corporations in the world will be located on the Island of Hainan.

By 2025, the Chinese government intends to create an "international center for tourism and consumption" on Hainan. In order to do so, the "Eastern Hawaii" with their unique natural landscapes, thick rainforests and great climate will establish a developed network of hotels, which blend perfectly with white sandy beaches stretching along the coastline. The combination of an exotic subtropical nature and a modern eco-friendly infrastructure will boost tourist inflow to the island from the most distant parts of the world.