Hainan Free Trade Port tipped to play key role amid global trade tensions: experts

The Center for China and Globalization (CCG) on Friday held the 13th CCG VIP Luncheon in Beijing, focusing on the Hainan Free Trade Port's progress and China's efforts to further open up its economy.

To fully leverage its strengths as an international think tank, the CCG launched the VIP Luncheon series in January 2015. The initiative aims to provide a regular platform for leading Chinese entrepreneurs and industrial elites to engage in dialogue with domestic and international political figures, renowned scholars and pioneering professionals.

It has since become one of China's most cutting-edge platforms for high-level social engagement, knowledge exchange, and policy recommendations centered around the theme of "China and Globalization."

Officials from Hainan shared insights on the port's transformative role during Friday's event that brought together diplomats, business leaders and the media to discuss the next phase of economic reform.

They said the low tax burden and preferential policies in Hainan, which is China's largest special economic zone and a key free trade port, will give a boost to the Chinese economy amid global trade tensions.

"Hainan is going to take off, going to be the largest free trade zone [in China]. They have the shortest negative list [for investment]. They have also [policies allowing people from] 78 countries without visa to visit. And also, they have [events like] the Consumer Expo, they have Bo'ao Forum. And then, most importantly, they have the experiments of new policies, which can be amplified to the rest of the country. Furthermore, they are at the center of RCEP (Regional Comprehensive Economic Partnership), of ASEAN (Association of Southeast Asian Nations), so they represent China, which is a gateway for China to the world, to the ASEAN, to Asia. So, this is very significant that Hainan is going to be another big powerhouse of China's economic takeoff," said Wang Huiyao, president of CCG.

Hainan is China's first province to transform an entire island, spanning 34,000 square kilometers, into a free trade port that serves as a testbed for the unrestricted flow of goods, services, capital and data.

By the end of 2024, Hainan was home to 9,979 foreign-invested enterprises, 77.3 percent of which were established after June 2020 when China released its master plan for the Hainan FTP. The number of countries and regions investing in the province has grown from 43 in 2018 to 174 today.

Hainan Free Trade Port tipped to play key role amid global trade tensions: experts

China's smart consumer device manufacturing sector has seen rapid growth this year, fueled by a government-backed trade-in program and the expansion of diversified consumption scenarios.

From January to May, the country's electronic information manufacturing industry maintained strong momentum, with total revenue of enterprises above the designated size reaching 6.49 trillion yuan (some 900 billion U.S. dollars), up 9.4 percent year on year.

Production of electronic consumer goods recorded steady increases. Over 140 million computers were produced during the period, up 8 percent from a year earlier, while 14.04 million television units rolled off assembly lines, up 1.7 percent year on year.

"Consumption scenarios are becoming more diversified. On the demand side, new smart products are quickly entering the market, opening up emerging markets in home services, health management, and beyond. On the supply side, the industry is clearly moving toward transformation and upgrading, with new growth drivers accelerating," said Zuo Kairui, director of the Industry Development Department of the Institute of Policy and Economics at the China Academy of Information and Communications Technology.

Looking ahead to the second half of the year, China plans to go on promoting its "AI plus consumer goods" initiative, encouraging the development and application of new technologies such as smart wearables, ultra-high-definition video, brain-computer interfaces, and robotics.

Meanwhile, authorities will continue to foster high-growth consumer sectors and guide the smart device industry toward greener, more service-oriented development.

China's smart consumer device industry sees rapid growth amid policy boost