SANYA /China/, January 30. /TASS/. The municipal government of the southern Chinese resort of Sanya (Hainan Province) is finalizing preparations to close customs control points and transition to the offshore regime, the Sanya Daily newspaper reported.

According to the newspaper, in 2023, the municipal government has fulfilled all the necessary regulations and recommendations of the Party Committee and the Hainan provincial government to start preparing to close customs control points. A major project to renovate and expand the Phoenix Airport International Terminal in Sanya was completed last year, with work finished six months ahead of the original schedule.

"Closing the customs offices does not mean closing the island, but creating a special customs zone on the entire territory of Hainan Island," the article emphasizes. According to the newspaper, the city government is currently working out the mechanisms and work regulations that will be implemented after the customs offices are closed. The authorities are already conducting the necessary stress tests of the relevant infrastructure in order to lay the foundation for the future offshore regime.

Last May, Hainan's first secondary investment fund was registered in Sanya's business district to buy out early investors' stakes in late-stage startups that have demonstrated the sustainability of their business model. Sanya was also the first city in Hainan to grant airlines the fifth freedom of airspace, which allows them to transport passengers and cargo from one foreign country to another during a flight starting or ending in their home country.

Challenges for 2024

This year, the city government plans to conduct additional inspections of the infrastructure to ensure that it is ready for the termination of customs controls, the abolition of duties and the implementation of a new tax system. City authorities also intend to open the professional services market to Hong Kong and implement additional measures to attract new investment to Sanya from this special administrative region of the PRC, as well as to facilitate the entry of large international businesses and cross-border corporations into the resort market.

This year's priorities also include improving mechanisms for dealing with businesses from the countries participating in the Regional Comprehensive Economic Partnership and the so-called one-stop-shop platform created for this purpose. The city government plans to explore opportunities for cooperation with the participants of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement.

According to the newspaper, Sanya also plans to increase the number of flights to other countries this year. Authorities will work on turning the city into an important international transportation hub; for this purpose, they will explore the possibility of granting airlines the so-called seventh freedom of airspace, which will enable them to carry out transportation from one foreign country to another through Sanya without landing in their own country.