According to the plan jointly issued by the Central Committee of the Communist Party of China (CPC) and the State Council, a free trade port system focusing on trade and investment liberalization and facilitation will be basically established in Hainan by 2025 and become more mature by 2035.
Besides, the southern island province will be built into a globally-influential high-level free trade port by the middle of the century.
China's door is opening wider and wider and Hainan is becoming the new highland of China's reform and opening up, said Han Shengjian, director of the Hainan International Economic Development Bureau.
The special policy of the Hainan free trade port is of great significance especially amid the COVID-19 epidemic. It reflects China's firm determination to expand its opening up and will definitely bring more opportunities to global investors, he said.
-- Favorable investment policies
In order to boost free and convenient investment, the plan proposes to greatly ease the market access for the Hainan free trade port and create an open, transparent and predictable investment environment, so as to further energize market players.
To be specific, foreign investment should be allowed in any field not on the prohibition list. For fields with mandatory standards, a filing system should be established, and market players should be allowed to start investment and business activities once they promise to meet relevant requirements and submit relevant materials for record.
The pre-establishment national treatment plus negative list management system should be implemented towards foreign investors to significantly reduce prohibitions and restrictions on them.
Efforts should also be made to improve the free investment system, the fair competition system, and the property rights protection system, and open capital projects in stages to orderly advance the free and convenient flow of capital between Hainan free trade port and outbound regions.
The plan also proposes to roll out a special list to relax market access and a negative list on market access for foreign investment, clarify the geographical scope of business operations of foreign-invested enterprises in specific service sectors that have been opened up in advance, and fully implement the minimal approval system.
-- Investment opportunities in key industries
The master plan also envisions grasping opportunities in the technological and industrial revolution, focusing on tourism, modern services and high-tech industries to foster new competitive edges for the island.
In order to attract global investors to take part in the Hainan free trade port construction and share the fruits of China's reform and opening up, the Hainan Provincial Department of Commerce, along with the Hainan International Economic Development Bureau, interpreted the investment opportunities in key industries of the island.
a. Tourism
According to the plan, focusing on the construction of an international tourism consumption center, Hainan free trade port will promote the in-depth integration of tourism with culture and sports, medical care, elderly care, health and other sectors, foster the development of the Hainan Boao Lecheng International Medical Tourism Pilot Zone, and build cultural tourism industrial parks and cruise tourism pilot areas.
Related investment opportunities will concentrate on fields like duty-free consumers goods, cruises and yachts, as well as culture and sports.
In terms of duty-free goods, investment will be welcomed to achieve the goal of building a global duty-free consumption center, leading the global fashion trend, and bringing in global well-known brands and independent designer brands, driven by the offshore duty-free policy in Hainan, the only province in China that has implemented such policy.
The offshore duty-free amount will be raised to 100,000 yuan per person per year, and the varieties of duty-free goods will be gradually expanded, said the master plan.
As for cruises and yachts, Hainan will encourage international cruise lines to set up international settlement and operation centers, support yacht companies set up regional headquarters, and encourage yacht companies to establish research and development (R&D), production, sales, service and maintenance bases in the island.
The opportunities in culture and sports will lie in large theme parks, e-sports, recreational facilities, as well as international performing arts events and sports events.
b. Modern services
The plan proposes to attract multinationals to set up regional headquarters in the island, build an international shipping hub, expand the opening up of professional services, and construct an internationally-competitive marine service system, as well as a national foreign cultural trade base.
Related investment opportunities will concentrate on fields like road stations, shipping, aviation, financial lease, offshore trade and modern finance.
The island plans to construct 40 featured landscape road stations to attract the gathering of multiple businesses such as high-end hotels, special food, theme parks, boutique shopping, special museums, etc.
As for shipping, international ships can register at Yangpu Port, a natural harbor located in the Yangpu Economic Development Zone of the island. Besides, enterprises are encouraged to carry out shipping services like ship financing, shipping insurance, ship maintenance, etc.
In terms of financial lease, the opportunities will lie in the financial lease of aircraft, ships, cruises, yachts and high-end medical devices.
As for modern finance, support will be given to foreign banks, insurance companies, reinsurance companies, mutual insurance companies and self-insurance companies to open business in Hainan, as well as overseas wholly-owned or joint venture securities, funds and futures institutions, and the establishment of various exchanges.
c. High-tech industries
According to the master plan, Hainan will promote the development of information industry focusing on Internet of Things (IoT), artificial intelligence (AI), blockchain, digital trade among others, foster deep-sea and deep-space industries and strengthen advanced manufacturing, and build a global tropical agricultural center as well as a global transfer base for the introduction of animal and plant germplasm resources.
Related investment opportunities will concentrate on fields like information and communication technology, advanced low-carbon manufacturing, medicine and medical care, oil and gas and chemical, deep sea technology, tropical high-efficiency agriculture, and aerospace,
As for information and communication technology, foreign investment will be welcomed in digital economy, big data, software development, digital creativity, blockchain and AI.
As for advanced low-carbon manufacturing, foreign investment will be welcomed in new energy vehicle manufacturing, high-end CNC machine tools and robots, high-end medical equipment, aerospace equipment, integrated circuit and other mid-range and high-end devices.
In terms of tropical high-efficiency agriculture, Hainan will introduce international well-known seed companies to set up regional headquarters and R&D centers in the island, and develop animal and plant germplasm resource introduction, trading, isolation and quarantine, reserve protection, intellectual property trading and other industries
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