China speeds building Hainan free trade port to push for higher-level opening up

Hainan, China's southernmost island province, has been ramping up efforts to develop itself into a free trade port (FTP) since 2018, securing progress in high-level opening up and high-quality development.

On April 13, 2018, China announced a decision to support Hainan in developing the whole island into a pilot free trade zone and gradually exploring and steadily promoting the establishment of a free trade port.

On Saturday, the fourth China International Consumer Products Expo opened in Haikou, capital city of Hainan, showing China's willingness and initiative to share open opportunities with global brands.

The six-day event will host over 4,000 brands from 71 countries and regions, with the theme of "Share Open Opportunities, Co-create a Better Life."

"We hope to promote Malaysian products to the vast number of Chinese consumers through the platform of consumer products expo. We also want to learn more about the preferential policies of the Hainan FTP from local enterprises or local government," said Zhang Chuangdi, chairman of the Malaysia International Business Promotion Association.

The ongoing expo is creating opportunities for global enterprises to share consumer market in China, the world's second-largest economy, reflecting that the Hainan FTP construction is in full swing.

"The construction of the Hainan FTP has become a distinctive banner of opening-up in the new era, and a new important platform for investment attraction, high-level opening-up, and institutional opening-up," said Chi Fulin, dean of the China (Hainan) Institute of Reform and Development.

The past six years saw Hainan stepping up efforts to increase market access and create a more favorable business environment.

In the past six years, the sales of offshore duty-free shops in Hainan have exceeded 180 billion yuan (about 24.87 billion U.S. dollars), highlighting the region's burgeoning appeal as a consumer haven.

Since 2018, the number of newly established foreign-funded enterprises in Hainan has grown at an annual rate of 65 percent, reaching a total of 6,543, signaling a strong vote of confidence from international investors. Now the island is seeing investors from 149 countries and regions around the world.

Hainan is also at the forefront of implementing high-standard economic and trade rules, steadily expanding its institutional opening-up.

The tropical province has introduced a series of new measures across key areas, including services trade, digital trade, and personnel exchanges, underscoring its commitment to a top-tier business environment.

"Industries such as tourism retail, international aviation, and high technology are booming in Hainan. We have seen many new opportunities, and many of our international-brand customers have their eyes on Hainan," said Zhao Wenwei, Commercial Director of Greater China Region of global leading logistics company Bollore Logistics.

According to a master plan on the Hainan FTP released in 2020 by the central authorities, the Hainan FTP is scheduled to initiate independent customs operations throughout the whole island by the end of 2025.

This year, vigorous efforts will be made to ensure the smooth and timely operation of building the Hainan into an independent customs zone.

More than 40 key tasks for independent customs operations on the whole island have been carried out in an orderly manner, 31 major projects have been basically completed, and pressure tests are in full force.

"Hainan strives to make new breakthroughs in promoting institutional innovation, fostering growth drivers and building a new pattern of all-around opening-up. We will accelerate the construction of a free trade port featuring openness, inclusiveness and win-win cooperation, and build Hainan FTP into a business card with Chinese characteristics," said Guan Jirong, executive deputy director of the Hainan Provincial Committee for the Comprehensive Deepening of Reform.

China speeds building Hainan free trade port to push for higher-level opening up

Automotive practitioners and consumers at the ongoing Beijing Auto Show have highlighted the growing popularity of new energy vehicles (NEVs)in the country, and expressed optimism that electric vehicles are set to gain more market share in the near future.

The show, which features 278 NEVs, comes as NEV sales hit a milestone in early April, accounting for more than 50 percent of cars sold in China, showing an overwhelming trend that the Chinese auto industry is going electric.

Consumers are attracted to the novel looks and smart features of rapidly evolving electric vehicles, but they also have higher expectations for new products, especially when it comes to charging and range.

An electric car owner said he hoped for technological improvements in the cars' charging system.

"Charging counts. I hope the car will be more convenient to charge," he said.

To stimulate research and development in the NEV industry, an observer from Europe said there should be more policy support to push the frontier for future vehicles.

"I think that based on all the regulations that are coming all over the world, in Asia [and] especially in Europe -- because I know Europe -- there are going to be more and more companies that will be working on innovation to move forward the EV power train. So, I am pretty sure that we are at the beginning of a new era really," he said.

Gu Huinan, general manager of GAC Aion New Energy Automobile, said they have prepared multiple ways to promote the innovative development of NEVs to meet customers' expectations.

"We are working on multiple paths to electrification, including battery replacement and fast charging. We are now driving innovation and promotion in both areas," said Gu.

Industry insiders, consumers at Beijing Auto Show highlight growing popularity of NEVs