Hainan FTP to enhance regional, global trade cooperation: int'l observers

The launch of island-wide special customs operations in the Hainan Free Trade Port (FTP) demonstrates China's commitment to high-level opening-up and will further enhance regional and global trade cooperation, according to international experts and foreign officials.

The move, which took effect Thursday, sees China's tropical southern island province of Hainan become the world's largest FTP by area, at more than 30,000 square kilometers. Under the new arrangements, Hainan has been designated as a special customs supervision zone, allowing the freer entry of overseas goods, expanding zero-tariff coverage and offering more business-friendly measures.

"The establishment of the Hainan Free Trade Port and other similar zones in China is an effective tool for promoting, improving and diversifying foreign trade. The measures taken by the Chinese authorities are making a significant contribution to expanding business opportunities for both Chinese and foreign citizens," said Maria Zakharova, spokeswoman for the Russian Foreign Ministry.

"These measures will contribute to the further development and prosperity of regional and global trade. China is a leader in contemporary global trade," said Andrey Denisov, first deputy chair of the Russian Federation Council Committee on Foreign Affairs.

Others said the move was a major step by China in its bid to open its economy to global investors.

"They're really serious about opening up, and China wants to let the world know that they are serious about allowing goods, services, capital and all the free trade to be able to go in between China and the rest of the world," said William Lee, chief economist at the Milken Institute.

"The creation of the free trade zone is not only an opportunity for China to further extend its participation in regional trade as an entrepot port for trade right across the region, but also providing great opportunities for Australia to extend and diversify its trade with China," said John Lander, a former Australian diplomat to China.

Hainan FTP to enhance regional, global trade cooperation: int'l observers

Impact of the U.S.-Israeli war with Iran is pushing Gulf countries to revisit costly plans for pipelines to bypass the Strait of Hormuz, so that they can continue to export oil and gas, the Financial Times newspaper reported on Thursday.

"Officials and industry executives say new pipelines may be the only way to reduce Gulf countries' enduring vulnerability to disruption in the strait, even though such projects would be expensive, politically complex and take years to complete," said the report.

"Previous plans for pipelines across the region have repeatedly stalled, undone by high costs and complexity," it said.

The Strait of Hormuz is a vital global energy corridor bordered by Iran to the north.

Around a fifth of global liquefied natural gas supply passed through the Strait of Hormuz, which also carries about one quarter of global seaborne oil trade.

Israel and the United States launched joint attacks on Tehran and several other Iranian cities on Feb. 28, killing Iran's then Supreme Leader Ali Khamenei, along with senior military commanders and civilians. Iran responded with waves of missile and drone strikes against Israel and U.S. assets in the Middle East, while tightening control over the Strait of Hormuz by restricting passage to vessels belonging to or affiliated with Israel and the United States.

Gulf countries consider new pipelines to avoid Strait of Hormuz: Financial Times