International Desk

Hainan, China’s largest economic special zone is going to be the next best free trade port hub in the world by 2035, said Professor of Law School of Hainan University and Deputy Director of Hainan South China Sea Policy and Law Research Center Zhang Liangfu.

He said this in a programme 'Introduction to Hainan Free Trade Port' at the Sanya city of Hainan province where 31 journalists from 25 countries including staff correspondent of United News of Bangladesh from Bangladesh attended. The professor also answered the questions of the journalists.

He said the Central Committee of the Communist Party of China decided to build Hainan Island into a free trade pilot zone, supporting Hainan’s gradual exploration and steady advancement of the construction of a Chinese-style free trade port, and establishing a policy and institutional system for free trade ports in stages and steps in April 2018.

Saying that the free trade port is hailed as the most advanced form of openness in the world today, he said the construction of a free trade port in Hainan represents China’s strategic choice to explore and promote a higher level of opening up, demonstrating China’s unwavering determination and confidence in advancing opening up.

He informed that the initial establishment of a policy and institutional system for free trade ports focused on trade liberalization and investment facilitation will be finalized by 2025.

"The institutional system and operational model of the free trade port will be more mature by 2035," he also said.

He added the basic framework of trade and investment rules will be characterized by freedom, fairness, rule of law, and high-standard process supervision.

"This will achieve trade liberalization and facilitation, investment liberalization and facilitation, free and convenient cross-border capital flow, free and convenient entry and exit of personnel, free and convenient transportation, and secure and orderly data flow," the professor said.

He also expressed hope that Hainan will become a new highland for China’s open economy.

"By the middle of this century, a high-level free trade port with strong international influence will be comprehensively established," he hinted.

He also shared the preferential policies of Hainan Free Trade Port in implementing trade and investment liberalization and facilitation, free and convenient cross-border capital flow, free and convenient entry and exit of personnel and transportation, orderly and secure flow of data, and tax policies with international competitiveness.

They also highlighted the zone will gradually promote the implementation of the “zero tariff” policy for imported goods, and gradually optimize corporate income tax and individual income tax policies.

"Currently, enterprises engaged in encouraged industries registered and substantially operating in the Hainan Free Trade Port are subject to a corporate income tax rate of 15%. For high-end talent and in-demand talent working in the Hainan Free Trade Port, the portion of their personal income tax that exceeds an actual tax burden of 15% is exempted from tax," he also highlighted.