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Source: People's Republic of China in Russian – People's Republic of China in Russian –
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Source: People's Republic of China – State Council News
Haikou, December 19 (Xinhua) — The world's largest free trade port, Hainan Free Trade Port (HFTP), launched independent customs operations throughout the island on Thursday. This marks a significant step in China's significant opening-up to the outside world.
This milestone in the development of this flagship project will provide a powerful and sustainable impetus to the high-quality development of both the tropical province of Hainan itself and the country as a whole, as well as to regional and global economic integration. It is also expected to provide a significant boost to free trade, which has been impacted in recent years by growing protectionism and unilateralism.
The establishment of the Hainan Free Trade Zone represents the highest level of openness in the modern world. Thanks to its abundant natural resources and the advantages of relying on China's gigantic market, the Hainan Free Trade Zone covers the entire island of Hainan, covering an area of 33,900 square kilometers. Currently, the Free Trade Zone comprises eight first-line ports (with direct access to foreign markets) and 10 second-line ports (with connections to the domestic market).
China aims to transform the Hainan Free Trade Zone into a key strategic hub that will lead the country toward opening up in the new era. As a pilot zone for comprehensively deepening reform and opening up, Hainan will contribute to the country's strategic efforts to build new, higher-level open economic systems.
The Hainan Free Trade Zone has entered a new phase of development. It has initially established a system of policies and institutions promoting the liberalization and facilitation of trade and investment. The Free Trade Zone is characterized by the gradual implementation of a zero-tariff regime, low tax rates, and a simplified tax structure, which will ultimately create an internationally competitive tax system. Since December 18, the share of products subject to zero customs duties in the Free Trade Zone on Hainan Island has sharply increased from 21 percent to 74 percent, and the number of items on the duty-free list has expanded from approximately 1,900 to over 6,600.
The independent customs regime will fully realize the role of this PST as a magnet for global investment and talent, as well as a new engine for high-quality development.
The dynamic development of the FTA on Hainan Island is evident from several indicators. Since 2020, over 9,600 foreign-invested enterprises from over 170 countries and regions have been established in Hainan Province. Hainan has opened a total of 75 container liner routes, including 36 routes for foreign trade. The number of tourists is rapidly growing as Hainan strives to become a hub for international tourism and consumption.
Focusing on tourism, modern services, and high-tech industries, the Hainan Free Trade Zone will strengthen coordinated development with the Guangdong-Hong Kong-Macao Greater Bay Area. With close trade ties, the Hainan Free Trade Zone and the Hong Kong Special Administrative Region enjoy a high degree of industrial complementarity and ample scope for cooperation. Hainan can learn from the management practices of global leaders in the Free Trade Zone, such as Hong Kong.
Hainan is a key node along the Belt and Road, linking domestic and international markets. Situated at a key crossroads connecting the Pacific and Indian Oceans, the Hainan Free Trade Zone will increasingly play a significant role in the global economic landscape.
With its unique geographical location, the Hainan Free Trade Area is expected to play an important role in unlocking the potential for cooperation under free trade agreements such as the Protocol on Upgrading the China-ASEAN Free Trade Area to Version 3.0 and the Regional Comprehensive Economic Partnership (RCEP).
As a committed advocate of free trade and economic globalization, China will continue to leverage the momentum of openness to advance reform and development, promote compliance with high-standard international economic and trade regulations, and expand market access. The introduction of an independent customs regime in the Hainan Free Trade Zone demonstrates China's unwavering determination and confidence in expanding high-level openness.
The Hainan Free Trade Zone (FNT) with Chinese characteristics has begun to take shape and will continue to gain momentum. As a long-term project, the FNT still has a long way to go. Reforms must be advanced consistently.
According to plans, the institutional system and operational regime of this free trade port will become more mature by 2035. Hainan Island will become a globally influential and high-level free trade port by mid-century.
As China's new leader in opening up, the Hainan Free Trade Zone will be at the forefront of exploring further institutional opening up, sharing development opportunities with investors, and providing new certainty and resilience to the global economy through open, win-win cooperation. -0-
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