Think Tank

Chi Fulin: Building an Important National Open Portal with Higher Level Openness

2025-05-03   

The strategic goal of building Hainan Free Trade Port is to adapt to the strategic needs of China's high-level opening up, fully utilize Hainan's geographical advantages, and create an important open gateway facing the Pacific and Indian Oceans with a higher level of opening up. The Hainan Free Trade Port, with the strategic goal of building an important national open gateway, should accelerate the implementation of core policies and enhance domestic and international confidence in China's firm promotion of high-level opening up and free trade; To accelerate the construction of an international tourism consumption center and leverage Hainan's important role in expanding domestic demand in all aspects; We should take the lead in implementing unilateral opening up to key regions such as ASEAN, making Hainan Free Trade Port an important intersection between China and RCEP markets; We should actively connect with high standard economic and trade rules such as CPTPP, and accelerate the creation of a new highland of institutional openness. Accelerating the implementation of core policies and intensifying the implementation of core policies for Hainan Free Trade Port is an important measure to adapt to the overall situation and serve the overall situation. It is a basic requirement for the substantive operation of Hainan Free Trade Port. Zero tariff, low tax rate, and simplified tax system are the core of the policy system of Hainan Free Trade Port, with "zero tariff" ranking first among the "core policies". Zero tariff "is not simply a matter of tariff level, but also a special institutional arrangement, namely a separate tariff zone for" domestic and foreign customs ". Under this premise, other policies of Hainan Free Trade Port have important conditions for implementation. This is also the primary task of the closure operation of Hainan Free Trade Port. One is to implement island wide lockdown operations. Especially against the backdrop of excessive tariffs imposed by the United States, the timely closure and operation of the Hainan Free Trade Port will demonstrate China's firm determination and pragmatic measures to promote high-level opening up. Adapting to the new challenges and demands of the changing international economic and trade landscape, it is recommended to close the customs in advance at an appropriate time while making sufficient preparations, in order to promote the higher-level opening of Hainan Free Trade Port and enhance the expectations and confidence of all parties; To effectively leverage the important role of Hainan Free Trade Port in China's response to the US trade war. The second is to implement high-level 'zero tariffs'. The operation of the Hainan Free Trade Port's closure should be based on the overall situation, and a "zero tariff" list should be introduced to ensure that the coverage of "zero tariff" goods reaches over 99%, and to achieve free and convenient entry and exit of goods except for restricted and prohibited categories. To adapt to this, accelerate the establishment and improvement of the operational system for separate tariff zones within and outside the country. The third is to explore digital finance such as encrypted assets. It is suggested to rely on important policies such as "promoting the establishment of standards and rules for blockchain finance" in Hainan Free Trade Port, carry out pilot projects for encrypted assets in Hainan Free Trade Port, allow the issuance of stablecoins anchored in offshore RMB in Hainan Free Trade Port, and cooperate with Hong Kong to establish encrypted asset trading platforms. Since April 2018, Hainan's "three major overseas consumption flows" have achieved initial results in accelerating the construction of an international tourism consumption center: offshore duty-free sales have accumulated 210 billion yuan, over 400 licensed drugs and equipment have landed in the Boao Lecheng International Medical Tourism Pilot Zone in Hainan, and 9 Sino foreign cooperative education institutions (projects) have been approved. Faced with the continuous compression of international market space by high tariffs, Hainan Free Trade Port should focus on doing its own thing well and comprehensively expand market demand with a focus on consumption; It is necessary to adapt to the trend of domestic residents' consumption structure transformation, enhance the supply capacity of international services, and keep more consumption in China; It is to attract more international tourists and accelerate the construction of an international tourism consumption center with global influence through measures such as expanding the scope of visa free travel. Firstly, support the expansion of visa free access in Hainan Free Trade Port. At present, China has unilaterally granted visa free access to 38 countries and extended visa free transit to 240 hours for 54 countries. Expanding the visa free policy for tourism is not only a common practice in major tourist destinations around the world, but also beneficial for attracting global tourists. It is recommended that the country fully utilize the visa free policies of the 59 countries in Hainan and support the Hainan Free Trade Port to learn from the practices of Hong Kong and Singapore, further expand the scope of visa free countries, especially to achieve full coverage of ASEAN countries as soon as possible. Secondly, we need to expand the "three major consumer return" markets. One is to expand the market for "studying abroad in Hainan" and support the Hainan Free Trade Port in implementing a wider range of educational opening-up policies. For example, the restriction that non compulsory education must be led by the Chinese side should be lifted, and foreign educational institutions should be given greater autonomy in running schools under clear curriculum and safety conditions; Hainan has taken the lead in canceling the approval system for "off campus internships" for international students studying in China, encouraging universities to cooperate with enterprises to provide internship opportunities for international students, and striving to retain more overseas talents in Hainan. The second is to build the world's largest duty-free consumer market. The penetration rate of duty-free shopping on Hainan's outlying islands in 2024 is 17.3%. If by 2030, the penetration rate of duty-free shopping on Hainan's outlying islands reaches the level of Jeju Island in 2019 (47%), and the per capita duty-free shopping amount reaches 10000 yuan, then the consumption scale of duty-free shopping on Hainan's outlying islands will reach 166 billion yuan by 2030. It is recommended to quickly introduce and implement a positive list for residents on the island to purchase imported duty-free goods; Relaxing market access to promote full competition in duty-free markets; The cooperation between the two ports to jointly establish a standard system for duty-free consumer goods, a service system, etc., aims to make Hainan Free Trade Port one of the most attractive duty-free shopping destinations in the world. Thirdly, the entire island will implement some policies for the Boao Lecheng International Medical Tourism Pilot Zone and develop a large, medium, and high-end medical market. If by 2030, 50% of overseas medical treatment is achieved in Hainan (about 1.2 million people), with a per capita medical expenditure of 300000 yuan, it will bring a consumption scale of 360 billion yuan. It is suggested to expand the open policy of Lecheng Pilot Zone, except for "stem cell clinical research", to areas with mature conditions and high demand throughout the island. Thirdly, support the Hainan Free Trade Port to enhance its overall internationalization level. Overall, Hainan Free Trade Port has the comprehensive advantage of hosting major international conferences. The 25th anniversary of the establishment of the Boao Forum for Asia is the best proof. From the perspective of the China National Development and Reform Commission, with the support of the main leaders of the provincial party committee and government, and the coordination of relevant institutions, the institute has facilitated the 11th Global Annual Conference of the World Free Zone Organization, which covers more than 140 countries and more than 1600 members, to be held in Haikou from October 10th to 12th this year. During the conference, the institute also jointly organized the first World Free Trade Forum with the World Free Zone Organization. Accelerate the construction of the forefront of China's unilateral opening-up. By 2024, the import and export volume between Hainan Free Trade Port and ASEAN will increase by over 62% year-on-year, with foreign-funded enterprises growing by 19.2%, and foreign investment ranking seventh in the country. The market is the rarest resource. Against the backdrop of the United States sacrificing the interests of other countries to achieve "national priority", it is suggested to leverage the geographical advantages of the Hainan Free Trade Port and support Hainan's comprehensive unilateral opening up to key regions such as ASEAN and the Middle East under the premise of "opening up the first line and controlling the second line", making it an important platform for regional free trade and the forefront of China's unilateral opening up. One is to create a "big channel" for ASEAN goods to enter the Chinese market through unilateral opening up in the field of goods. On the basis of fully implementing the "zero tariff" policy, support domestic enterprises to establish procurement centers, processing centers, bonded warehousing centers, etc. in Hainan Free Trade Port and ASEAN related areas; Take the lead in implementing the RCEP full accumulation of origin rule at the Hainan Free Trade Port. Timely reduce the proportion of value-added tax exemption for processing at Hainan Free Trade Port to 20%, thereby enhancing the node role of Hainan Free Trade Port in the regional industrial chain and supply chain. The second is to create a "big platform" for mainland enterprises to invest in emerging markets such as ASEAN and the Middle East through unilateral opening up in the investment field. To be guided by the needs of enterprises and achieve free and convenient access to enterprise funds; Change the practice of joint approval by relevant departments for foreign direct investment and implement a filing system as soon as possible. At the same time, considering that Chinese enterprises' outward investment is mainly concentrated in the fields of energy, minerals, and manufacturing, it is suggested to cancel the tax exemption policy for Hainan Free Trade Port's outward direct investment income as soon as possible, which is limited to "tourism, modern service, and high-tech industries" and other restrictions. The third is to expand regional free trade space through unilateral opening up in the field of service trade. Hainan Free Trade Port should take the lead in lifting investment restrictions on service industries such as Japan, South Korea, and ASEAN, fully implement the China Europe Comprehensive Investment Agreement, and support qualified overseas service trade enterprises to provide high-quality services in a cross-border manner; Deepen research and development, as well as technology exchange and cooperation, with a focus on the digital economy and green economy. The fourth is to promote the realization of a new pattern of "cooperation led governance" through unilateral opening up of the blue economy. For example, supporting domestic and foreign enterprises to cooperate in developing South China Sea cruise tourism routes and products mainly targeting domestic consumers; Strengthen cooperation in marine aquaculture, rely on Chinese capital and technology, explore cooperative development of ecological and high-yield deepwater net cages, large-scale intelligent aquaculture fishing grounds, etc. Accelerating the creation of a new highland of institutional openness and actively benchmarking international high-level economic and trade rules such as CPTPP, and accelerating the creation of a new highland of institutional openness, is a major task for Hainan Free Trade Port to actively create an international, legal, and convenient business environment. Relying on favorable conditions such as customs operation, Hainan Free Trade Port has the conditions to become a new highland of China's institutional opening-up as soon as possible. During the operation of customs clearance, around 10 negative lists for cross-border service trade should be implemented, reaching or exceeding the level of CPTPP; For digital trade, develop and implement a streamlined negative list for data export across the entire industry, and implement facility localization measures against DEPA. Establish a highly open market access rule system. Realize integrated management of investment access and market access; Gradually achieve 'no approval' for market access outside the negative list; Realize equal treatment for private enterprises, foreign enterprises, and state-owned enterprises in terms of access permits, business operations, factor acquisition, standard setting, preferential policies, government procurement, and other aspects. There should be significant breakthroughs in creating a legal business environment. For example, allowing foreign-funded enterprises to independently choose the application of laws in the commercial field; Referring to the Arbitration Rules of the Hong Kong International Arbitration Centre, the Hainan Free Trade Port International Commercial Arbitration Regulations have been promulgated; On the premise of not violating the core principles of higher-level laws, we should make good use of the Free Trade Port Law to regulate and determine power, and after evaluating the high standard economic and trade rules in the field of trade and investment, transform them into Hainan Free Trade Port regulations, and quickly form a high-level local regulatory system. Conduct substantive exploration in sensitive areas such as labor. Hainan Free Trade Port can learn from the practices of Vietnam and other countries, and take the lead in exploring the implementation of International Labour Organization conventions to increase law enforcement efforts for protecting workers' rights and interests. To build Hainan Free Trade Port into an important gateway for national openness at a higher level of openness, it is necessary to form a joint force of all parties to support the construction of Hainan Free Trade Port. To form a joint force for the comprehensive implementation of the Hainan Free Trade Port Law of the People's Republic of China. From the central to the local level, based on the Hainan Free Trade Port Law as the main basis, it is necessary to quickly establish a legal guarantee to accelerate the implementation of core policies, form legal constraints that cannot be lowered by opening up policies, and make legal breakthroughs to accelerate the construction of a new highland of institutional openness. To form a joint force for the construction of Hainan Free Trade Port from top to bottom. Under unified leadership and coordination, we need to deepen the reform and innovation of the administrative management system, and form a joint force among various functional departments and cities and counties within the province; We need to accelerate the implementation of policies such as "low tax rate, simplified tax system" and the zero tariff list for local residents, and form a joint effort among the government, enterprises, and society. We need to unify our understanding and build consensus. Not long ago, the Boao Forum for Asia was held

Edit:Yi Yi Responsible editor:Li Nian

Source:www.news.cn

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