Hainan Free Trade Zone: China launches plan to build island into pilot FTZ

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02:44

The Chinese government has rolled out a plan to build the country's southern island province Hainan into a pilot free trade zone. This comes 6 months after the plan was first announced by Chinese President Xi Jinping. That announcement coincided with the 30th founding anniversary of the province and its special economic zone. CGTN's Feng Yilei has the details.

The general plan has been issued by the State Council. It lists out policies to boost development and grant more autonomy to Hainan. It is an important practical step in turning President Xi's announcement into a reality.

WANG SHOUWEN, VICE MINISTER MINISTRY OF COMMERCE "The Hainan Free Trade Zone will push forward trial reforms. They include accelerating the establishment of new institutions of the open economy, promoting the innovative development of the service sector and speeding up efforts to transform government functions."

Authorities say the move demonstrates China's determination to further open up and promote multilateralism. A series of proactive strategies seek to turn Hainan into a key gateway to the Pacific and Indian Oceans. Actions are also set to attract foreign trade and investment, with an emphasis on tourism, service and high-tech sectors.

SHEN DANYANG, VICE GOVERNOR HAINAN PROVINCE "Hainan aims to foster a law-based, international, and convenient business environment as well as a fair, open, unified, and efficient market environment. That will be done via policy innovation and implementation. An action plan is already being developed."

The plan has made exceptions to certain restrictions to make way for foreign construction projects and talents. But with 11 free trade zones already in place across China, how will this tropical island eclipse its equivalents? A significant breakthrough is that comprehensive reform will be carried out throughout the whole island.

WANG SHOUWEN, VICE MINISTER MINISTRY OF COMMERCE "While referencing experience from existing FTZs, Hainan will utilize its own advantages to push forward trial programs in sectors like healthcare, culture and tourism, as well as green development. It will also focus on the establishment of major risk control mechanisms."

Meanwhile, the local government says it will also draw upon successful experiences from overseas. That could further strengthen comparisons that have put Hainan in the ranks of Hawaii and Dubai, in terms of its climate and tourism offerings.

FENG YILEI BEIJING "China has set a goal to turn Hainan Province into an open and standardized free trade zone by 2020. That goal is also a sign of greater and future ambitions - to establish China's first free trade port on the island. FYL, CGTN, BEIJING."