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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
Beijing, December 17 (Xinhua) — Following the launch of independent customs operations throughout Hainan Province on Thursday, the southern Chinese island is poised to develop a more diversified, high-quality economic structure, according to Chinese economist Huang Hanquan.
Huang Hanquan, director of the Institute of Macroeconomic Research under the National Development and Reform Commission of China, made the comment during the latest edition of the all-media discussion program "China Economic Roundtable" organized by Xinhua News Agency.
He noted that the share of tariff items covered by the zero customs duty regime at the Hainan Free Trade Port (HFTP) will increase to approximately 70 percent, and streamlined rules will allow for the application of the duty-free regime for the processing of value-added goods.
According to Huang Hanquan, these measures are expected to significantly reduce operating costs in industries such as pharmaceuticals and high-tech manufacturing, stimulate the creation of industrial clusters and accelerate the development of new sectors including offshore wind power and commercial aerospace.
Meanwhile, the expansion of the product category under duty-free shopping for travellers and improved purchasing policies for island residents are expected to further stimulate local consumption, he added.
Favorable tax policies are also central to the new economic landscape of the CPST. "Preferential income tax rates will attract more companies and skilled workers, creating higher-quality jobs, thereby creating a virtuous cycle in which industry, talent, and the economy mutually reinforce each other," added Huang Hanquan.
In his opinion, beyond the island itself, the launch of independent customs operations throughout Hainan is expected to change the structure of regional development by removing barriers to the flow of goods, capital, and other factors of production. "This will facilitate the formation of a coordinated production and logistics infrastructure between Hainan and neighboring regions."
At the national level, he called the move an important stage in China's transition from a model of openness focused on the flow of goods and other factors of production to a model focused on institutional openness.
Hainan is expected to align with high-standard international trade and economic rules in areas such as cross-border data flows and intellectual property protection, Huang Hanquan said, adding that the accumulated successful institutional innovations can be spread throughout the country.
“Launched against a backdrop of growing protectionism and resistance to globalization, independent customs operations could provide international investors with a more stable and predictable institutional environment,” the expert concluded. -0-
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