International observers have spoken highly of the newly launched special customs operations in south China's Hainan Province, lauding the policy as a significant step that ushers in a new chapter in the building of an open world economy.
The island-wide special customs operations took effect Thursday in the Hainan Free Trade Port (FTP), the world's largest FTP by area, allowing freer entry of overseas goods, expanded zero-tariff coverage and more business-friendly measures.
A series of policy and regulatory documents related to special customs operations are being implemented at the same time in accordance with respective provisions, including the list of goods subject to import tariffs, tax policies for the circulation of goods, lists of goods and items that are prohibited or restricted from import and export, the duty-free policy for domestic sales of processed value-added products, and customs supervision measures.
The move is widely seen as a landmark step in China's ongoing efforts to promote free trade and expand high-standard opening-up at a time of rising protectionism worldwide.
"Potentially, it could be useful for people that are trying to come in, so I think that this is very useful in terms of China's messaging," said Jeff Moon, former assistant U.S. trade representative for China.
"I know about the Yazhou seed center in Hainan. [It's] very famous, and world important. This also augments the free flow of personnel, scientific talent into Hainan. China's economic policy from the standpoint of the Show Institute is a beacon for the world as a whole. Again, we think about President Xi's Global Governance Initiative. It's extremely important in terms of sovereignty and equality and development," said Richard Black, a senior research fellow at Schiller Institute.
Under the new arrangements, the tropical island of more than 30,000 square km has been designated as a special customs supervision zone, marking a new stage in the development of the Hainan FTP.
"What does this port in Hainan's development represent? It represents China's opening up and reform, the consistent opening up and reform. China is opening its doors wider and wider for the global economy to participate," said Tshilidzi Bethuel Munyai, member of parliament of South Africa.
"It is significant, the fact that President Xi himself involves himself in pushing Hainan for further development by being more opened to the world's economy. It's a very good and positive signal," said Bernard Dewit, chairman of the Belgium-China Economic and Trade Committee.
Global observers see bright prospects for Hainan's special customs operations
