HAIKOU, June 14. /TASS/. The new bill on Hainan's Free Trade Port Development will enhance the island's economic openness and create an even more favorable environment for fair international competition, announced the provincial administration.
"Based on this law, given the important role of local legislation and the mechanism for resolving commercial disputes, Hainan will boost the formation of the free port legal system," said Shen Xiaoming, secretary of the Hainan Party Committee. "We will create a top-notch atmosphere for the development of international trade."
According to Hu Guanghui, deputy chairman of the regional people's congress, Chinese lawmakers are working on detailed legal acts, thanks to which investors will soon be able to take advantage of even more favorable conditions for the business climate. "First of all, this concerns fair competition," he stressed.
"With the support of the competent departments, the Hainan authorities will have to put into practice the important principles approved by this law and take a number of effective measures," the Legal Commission of the Standing Committee of the National People's Congress (NPC Standing Committee, parliament) commented on the innovation.
According to Xinhua observers, the terms “freedom” and “optimization” are the most frequently used words in the text of Hainan's Free Trade Port bill. As they noted, such formulations relate not only to trade, but also to the investment sphere, cross-border capital flows, the policy of creating new jobs for highly professional specialists. On the one hand, in their opinion, the process of lifting restrictions is seen on Hainan, on the other hand, "effective regulatory mechanisms are being created."
On June 10, the NPC Standing Committee approved a bill that is expected to become crucial for the development of Hainan's Free Trade Port. In June, 2020 the island's administration published a general development program, which provides for the gradual removal of restrictions and a decrease in the tax burden for companies involved in the province's economic activities. According to the new strategy, by 2025, an effective mechanism will be formed on Hainan to stimulate sustainable and long-term growth.