HAIKOU, August 28. /TASS/. The Hainan province published a list of restrictions on cross-border trade in services and became China's first region to switch to a new, more open system of interaction with foreign companies in the relevant field instead of the previous mechanism of "exceptions from what is prohibited," announced the regional administration.
According to statement, the list of state-approved restrictions approved covers 11 areas of international economic cooperation and includes 70 control measures. In all cases of trade in services not specified in this document, foreign companies will carry out commercial activities on Hainan according to the same rules as the Chinese companies. Thus, the province has significantly increased the transparency of the format of business cooperation with other countries, increasing the level of investor confidence.
This is an important step towards enhancing the high-level openness of the Chinese [international trade] system, and is essential for the intensive development of Hainan's free trade port," the Chinese Ministry of Commerce commented on the innovation.
According to the local authorities, these measures "provide for a fairly effective control over regional and systemic risks." It is assumed that the modified system will significantly increase Hainan's competitiveness on the international market.
On April 13, 2018, Chinese President Xi Jinping announced the creation of a pilot free trade zone and port on Hainan. The program aims to involve the island in globalization and international distribution of labor, to lay a solid innovation base. The provincial administration creates attractive conditions for investors, forms a top-notch research infrastructure. According to the government plan, by 2050, this region will become a unique cluster with an advanced economy, with the campuses of leading universities, advanced laboratories and the headquarters of world corporations.