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Hainan passes first legal acts to accompany the free trade port bill

An effective legal guarantee was established, says official

HAIKOU, October 2. /TASS/. The Hainan authorities adopted the first package of regulations to accompany the Free Trade Port Act, announced in June, reported the Hainan Daily. 

According to the newspaper, four new documents were approved this week during a vote at the thirtieth session of the Standing Committee of the Provincial People's Congress of the sixth convocation. In particular, rules have been defined regarding the optimization of business climate, fair competition and social rating, as well as a regulation on measures to suppress cases of consumer fraud.

"Thus, an effective legal guarantee was established, a more reliable incentive for the socio-economic development of Hainan's Free Trade Port," said Secretary General of the Standing Committee of the Provincial People's Congress Lin Zefeng.

According to the official, the next package of accompanying legal acts to said law should include documents related to bankruptcy, cancellation of registration of market entities, and the application of penalties for violation of obligations in the implementation of duty free trade. "We plan to publish them during this year," concluded the speaker. 

On June 10, the Standing Committee of the National People's Congress (parliament) approved a bill that is expected to play a key role in the development of Hainan's Free Trade Port. In June 2020, the island administration published a general development program, which provides for the gradual removal of restrictions and a reduction in the tax burden for companies involved in the province's economy. According to the new strategy, by 2025, an effective mechanism for stimulating sustainable and long-term growth will be formed on Hainan, providing for the active participation of this southernmost region of  China in international supply chains.