Hainan Development: President Xi: China plans to build Hainan into pilot free trade zone

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Chinese President Xi Jinping announced Friday a decision to turn the southern island of Hainan into a pilot free trade zone. Paolo Montecillo has more.

In a speech to commemorate the 30th anniversary of the foundation of Hainan Province and the Hainan Special Economic Zone, President Xi said turning Hainan into a pilot free trade zone and a free trade port -- with Chinese characteristics -- would boost the area's development.

XI JINPING CHINA'S PRESIDENT "The Party Central Committee supports Hainan to explore policies and mechanisms for free trade ports. This is a major step showing our enhancement of opening up, and pushing forward economic globalization."

An island of nine million people, Hainan is China's only province entirely in the tropics.

Over the past five years, the island's GDP has grown by an average of eight percent every year, outperforming China's overall economic expansion over that period.

The international airports in Haikou and Sanya received over 40 million passengers last year.

President Xi said as one of China's biggest Special Economic Zones, Hainan's unique location and tropical environment serve as a good test bed for reform and liberalization policies.

The president also said investors are welcome to visit Hainan and share in the opportunities for the area's development.

Xi said Hainan should take advantage of its opportunities, and focus on service industries such as tourism, the internet, information technology, health, and finance.

After attending the Boao Forum for Asia, President Xi visited several cities in Hainan, and met people from different sectors such as maritime healthcare workers, researchers in maritime technology, and agriculture.

He said Hainan used to be an underdeveloped collection of fishing villages, and is now a world-famous tourist destination. He credits this development to the policy of reform and opening up, adding he looks forward to a new chapter of Hainan's prosperity.