HAIKOU, February 5. /TASS/. China's Hainan will soon create an effective system for assessing the degree of reliability of commercial organizations, which will minimize risks and significantly improve the business climate, reported www.chinanews.com.
According to the local administration, the key criterion in exercising control over companies will be their credit rating. The authorities plan to improve the quality of Hainan's free trade port business climate through incentives as well as punishments. At the same time, the government will work to improve the legal framework, promote the internationalization of projects, and eliminate negative factors that hinder the normal conduct of business and international economic cooperation.
According to the news outlet, the local authorities intend to monitor the fulfillment of obligations by enterprises operating on Hainan. It is expected that by doing so the authorities will be able to draw more big investors and create even more attractive conditions for building up trade and economic cooperation.
The results of company reliability assessments will be submitted to government agencies, financial institutions, industry associations and other competent authorities. Control will primarily affect urban planning, tourism, pharmaceuticals and food processing, medicine and health care, the sector of care for the elderly. The main focus will be given to tax transparency, industrial safety and the quality of implemented projects, compliance with intellectual property rights, as well as the creditworthiness of commercial organizations.
If the company is deemed unreliable, it will automatically lose the right to operate in the relevant industries and cooperate with other market players.
In April 2018, Chinese President Xi Jinping announced the launch of Hainan's project to build a pilot free trade zone. According to the authorities' plan, the creation of a pilot zone will give impetus to the processes of globalization of the island's economy and increase the attractiveness of the Chinese province for foreign investors. It is expected that by 2050 Hainan will become a unique international cluster with an advanced economic system, which includes a free trade zone, campuses of the best universities, the most modern scientific laboratories and the headquarters of world corporations.