China's Hainan To Become Free Trade Zone Area By 2020

China has unveiled a plan to establish the country's southern province Hainan as a free trade zone (FTZ) in its latest move to open up the economy.

KUALA LUMPUR, (UrduPoint / Pakistan Point News - 22nd Oct, 2018 ) :China has unveiled a plan to establish the country's southern province Hainan as a free trade zone (FTZ) in its latest move to open up the economy.

The plan, issued by the State Council, China's cabinet, mapped out the target and scope for the FTZ development while identifying key industries that will see fewer foreign investment restrictions, a statement said.

Hainan will be turned into a high-quality FTZ that promotes trade and investment facilitation by 2020, providing the excellent legal environment, thorough financial services, efficient regulation, favourable ecological environment and boosts the development of surrounding areas.

The plan also benefits foreign investors which will have wider access to tourism, education and telecommunications.

A negative list approach which outlines economic areas restricted for foreign investment will be also adopted in the Hainan FTZ.

As part of its opening-up policies, China has unveiled a new negative list in June for foreign investment in FTZs, with the number of items down to 45 from 95 in the previous version.

The new plan also gives Hainan more autonomy in granting foreign investment access whereby international businesses which provide value-added telecommunication services will no longer need to go through central authorities to enter the market.

Data-based systems will be put into use to improve customs efficiency while multinationals and trade companies are encouraged to treat Hainan as the centre of their global or regional trade network as part of promoting international trade.

Domestic and foreign shipping companies will be also encouraged to set up operational or regional centres in the FTZ, as part of the efforts to build the area into an international shipping hub.

The plan also set to established strength in medical services in Hainan with the tariffs for some medical equipment will be cut in the pilot zone.

The island is drawing a number of cutting-edge medical institutions and foreign doctors thanks to relaxed rules on importing foreign medical equipment and pharmaceuticals and visa policies will be rolled out in recent years.

The plan is released on the official website of the State Council of the People's Republic of China.