Press conference held on law for the Hainan FTP

On June 21st, a press conference illustrating the newly released law for the Hainan Free Trade Port was held in Beijing. The law stipulates measures promoting trade, investment, environmental protection, and more, laying a solid legal foundation for the further development of the Hainan FTP.

This law mainly focuses on the core mission of trade investment liberalization and facilitation, creating a key system for the development of the Hainan Free Trade Port. The following five points summarize the main substance of the law:

(Photo by Shi Junhao)

In respect to legislation authority and scope of management, the Hainan Province People’s Congress and the standing committee are authorized by this law to formulate practical, necessary Hainan FTP legislation. 

In regards to trade liberalization and facilitation, for cross-border service trade falling outside the negative list, management will be carried out according to the principle of equality for domestic and foreign trade. 

In regards to investment liberalization and facilitation, a comprehensive, extremely simplified examination and approval system will be put in place for investments, investment promotion and investment protection systems will be optimized, property rights protections will be strengthened, a customized negative list for foreign business access will be put into use, the special list for market access will be broadened, and a market access commitment and entry system will be put into place. 

In regards to the taxation system, the principles of a simple tax system, zero tariffs, and a low tax rate will be adhered to. The date that the Hainan FTP customs border will be into place is specified. Tax system requirements will be simplified after the customs border is closed, specified arrangements will be made for goods moving between the Hainan FTP and the rest of China, and a preferential income tax policy for qualifying companies and individuals is specified. 

In regards to environmental protection, the Hainan Free Trade Port will implement the strictest possible environmental protection system, as well as a one-vote environmental protection target achievement veto system and an investigation system stipulating lifelong responsibility for harming the environment. 

Cong Liang, the Vice Chairman of the National Development and Reform Commission introduced that Hainan will increase law enforcement in the area of environmental protection, and strengthen the environmental protection accountability system. 

“We will protect Hainan’s ecological environment with the strictest system and the most solid legislation possible,” said Cong Liang.

Modern scientific and technological means, including remote satellite sensing technology and methods integrating people with technology will be adopted to dynamically monitor the ecological environment of the island so that problems will be spotted and tackled in time, ensuring that the ecological environment of Hainan can only improve, not worsen.

(Photo by Shi Junhao)

In addition, in the areas of industrial development, talent support, and comprehensive measures, the law formulates a policy system  suited for the development of the Hainan FTP.

Feng Fei, the Governor of the Hainan Provincial People’s Government elaborated the new measures to introduce overseas talents. 

Above all, overseas talent will have easier access to Hainan. “Hainan has now achieved visa exemption for citizens of 59 countries, and we need to further improve the level of facilitation and extend the length of the visa-free stay,” said Feng.
Plus, Hainan will make the utmost of the overseas talents. Talents will have a promising platform for development and easy access to the work permit. 

“Hainan is now exploring the implementation of negative list management of work permits for overseas individuals, which is very rare in other countries,” he said.

(Photo by Shi Junhao)

In regards to confirmation of professional qualifications, Hainan is implementing a single-item approval list for professional qualifications as well.

The formulation of the Hainan FTP law ensures that the FTP will operate in an orderly, lawful manner, develop an international, convenient, rule-of-law style business environment, promoting the development of the Hainan FTP into a new high-water mark for comprehensively deepening reform and opening to the outside world, fully demonstrating China’s unswerving determination and will to further open up. At the same time, it provides a practical, necessary legal basis for the advancement of reform in the Hainan FTP. The formulation of the Hainan Free Trade Port law provides a high-level plan for orienting the functions of the FTP, its method of operation, and method of management, which is beneficial for strengthening systematic coordination, ensuring the stability and authority of policy measures, and avoiding conflicts that may arise in the application of norms between various types of laws at all levels, enabling various institutional measures to cooperate and complement each other, and improving the overall effectiveness of the system.