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Hainan Free Trade Port development enters new stage

The provincial leading reform group has stated that increased transparency will be key to advancing the island's socio-economic growth and modernizing its industrial infrastructure

HAIKOU, China, June 9. /TASS/. Authorities in the southern Chinese province of Hainan have largely completed preparations for the closure of the free trade port, aiming to increase its openness to international trade and investment, Xinhua News Agency reported.

The so-called closure of the port is expected this year. This means that Hainan Province will be separated from the rest of Chinese customs, but it will become more open to the outside world. Hainan will operate under special customs rules ensuring the free movement of goods and capital between the province and other countries.

The agency reported that since the program to build a free trade port in Hainan was published five years ago, the rules for its operation have been continuously improved, the business environment has been optimized, and the province's openness to the outside world has reached a new level. Overall, Xinhua noted that preparations for the closure are complete. To date, authorities have established a free trade port management system, imposed zero tariffs and low tax rates, and simplified customs procedures.

Leveraging its openness policy, Hainan is proactively establishing itself as a hub for Chinese companies entering international markets and foreign companies entering the Chinese market. According to official data, the total amount of foreign investment attracted since 2018 reached $17.4 billion, exceeding the total for the previous 30 years.

The Hainan Leading Group for Deepening Overall Reform and Opening Up noted that further progress will promote the island's socioeconomic development, modernize its industrial system, and enhance the free trade zone's international competitiveness.

The Hainan Free Trade Port Development Program was published on June 1, 2020. The government expects to complete the creation of the free port by 2025, when a system ensuring free trade and investment should be in place. By 2035, the free port and its model will have matured. Hainan plans to ensure freedom of trade and investment, cross-border movement of capital, and the entry and exit of people and freight by this time.

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