China News Client, Beijing, June 2 (Reporter Li Jinlei) Hainan ushers in a major upgrade!

  On June 1, the Central Committee of the Communist Party of China and the State Council announced the "Overall Plan for the Construction of Hainan Free Trade Port", which clarified the road map and timetable for the construction of Hainan Free Trade Port.

  How to build Hainan Free Trade Port? What impact will it bring? What dividends will it bring to the people? Let's take a look.

On April 13th, Hainan held the construction start and signing ceremony for the construction project of Hainan Free Trade Port. Photo by Luo Yunfei

What is the goal?

  The implementation scope of Hainan Free Trade Port is the whole island of Hainan Island.

  According to the development goals proposed in the plan, a free trade port policy system focusing on free trade facilitation and free investment facilitation will be initially established by 2025, and it will become a new highland of China's open economy by 2035. A high-level free trade port with strong international influence.

How to design the system?

  In terms of system design, the plan clarifies 11 aspects, including free trade facilitation, free investment facilitation, free cross-border capital flow free facilitation, free entry and exit of people, free transportation facilitation, safe and orderly flow of data, modern industry Tax system, social governance, rule of law system, risk prevention and control system.

  Bai Ming, deputy director of the International Market Research Institute of the Research Institute of the Ministry of Commerce, told reporters at that free trade ports are the highest level of openness in the world today. The opening of the Hainan Free Trade Port is more vigorous, and the overall plan has a lot to look at. Tax concessions are one of the most important aspects.

The picture shows the aerial photography of Haikou Xiuying Port. Photo by Luo Yunfei

  The plan proposes that, in accordance with the principles of zero tariffs, low tax rates, simplified taxation, strong rule of law, and stages, gradually establish a tax system that is compatible with high-level free trade ports.

  With regard to zero tariffs, before the whole island is closed, some imported goods are exempted from import duties, import link value-added tax and consumption tax. After the island-wide customs clearance operation and the deduction of the tax system, import tariffs are exempted for goods that are not allowed to be imported into the Hainan Free Trade Port.

  With regard to low tax rates, preferential corporate income tax rates are applied to companies that are actually operating in Hainan Free Trade Port. For example, from the date of issuance of this plan, 15% of corporate income tax will be levied on encouraged industrial enterprises registered in Hainan Free Trade Port and operating substantially. Preferential tax rates for personal income tax are applied to eligible individuals.

Sanya Yalong Bay Yacht Tour. (Profile picture) Photo by Yin Haiming

How is it implemented?

  The plan requires a step-by-step arrangement, which defines key tasks before 2025 and key tasks before 2035.

  By 2025, it includes 18 key tasks, including strengthening the construction of special customs supervision areas, implementing a zero-tariff policy for some imported goods, reducing cross-border service trade restrictions, implementing a "minimum approval" investment system, and piloting reforms of cross-border securities investment and financing policies. Accelerate the opening of the financial industry to the outside world, enhance the financial services of the real economy, implement more convenient visa-free entry measures, implement a more open shipping policy, implement a more open air transport policy, facilitate data flow, deepen industry opening to the outside, optimize Tax policy arrangements, increase central financial support, give full legal authorization, strengthen land and sea security, make good preparations for customs clearance operations, and start island-wide customs clearance operations in due course.

  By 2035, it includes 7 key tasks, including the realization of free trade facilitation, the realization of free investment facilitation, the realization of free and convenient cross-border capital flow, the realization of the free and convenient access of personnel, the realization of the free and convenient transportation, the safe and orderly flow of data, and the further promotion of fiscal and taxation System reform.

The picture shows Luo Yunfei, Yangpu Port, Hainan

What is the impact?

  Bai Ming analyzed that Hainan is China's largest special economic zone and has the unique advantage of implementing comprehensive deepening reforms and testing the highest level of openness policies. The construction of the Hainan Free Trade Port will not only enhance the vitality of Hainan, bring new development opportunities to Hainan, but also create a new growth pole for the Chinese economy, and set a new path for deepening reform and opening up in the new era.

  The analysis believes that Hainan Free Trade Port will achieve a comprehensive breakthrough in systemic and integrated institutional innovation, break the institutional constraints and barriers, connect with new international economic and trade rules, establish a new open economic system, and deepen the new round of high-level national comprehensive Reform and opening up provide the "Hainan sample" and "Hainan plan", and provide the "Chinese model" in the international free trade port.

  In particular, the world today is undergoing a new round of major developments, major changes, and major adjustments. Protectionism and unilateralism are on the rise. Economic globalization is experiencing greater headwinds and turning waves.

  Bai Ming pointed out that under such a large background, the construction of Hainan Free Trade Port underscores China's determination to promote high-level opening up. The opening of Hainan Free Trade Port will not only benchmark the international advanced level, but also have Chinese characteristics, which will help promote high-quality development and support economic globalization.

The picture shows a male customer queuing to pay at the Haikou Riyue Plaza Duty Free Shop. China News Service reporter Luo Yunfei

What bonus do ordinary people get?

  The Hainan Free Trade Port is not only of great significance to China and the world, but for the common people, it can also reap real dividends.

  ——Implement positive list management for the imported goods consumed by residents on the island, and allow tax-free purchase on the island.

  ——Relax the duty-free shopping quota for outlying islands to 100,000 yuan per person per year, and expand the variety of duty-free commodities.

  -Support Hainan to vigorously introduce high-quality foreign medical resources. Summarize the experience of piloting the construction of regional medical centers, and research and support the construction of regional medical centers in Hainan.

  ——Allow foreign high-level universities and vocational colleges in agriculture, medicine and medical sciences to independently run schools and set up international schools in Hainan Free Trade Port. Promote the introduction of well-known foreign universities in key domestic universities to host Chinese-foreign cooperatively-run schools with independent legal personality in Hainan Free Trade Port.

  —— High-end talents and talents in short supply who work in the Hainan Free Trade Port will be exempted from the portion where the actual personal income tax burden exceeds 15%.

  It can be seen that it is good for consumption, medical care, education, tax burden, etc.! (Finish)