HAIKOU /China/, April 27. /TASS/. South China's Hainan province is creating an increasingly effective legal system to protect investors and create new incentives for the development of a free trade port, the Hainan Daily newspaper reported.
The State Council of the People's Republic of China has recently published a package of documents indicating the most effective pilot projects to stimulate innovative development. One of them is a mechanism created in Hainan to resolve international trade disputes. The provincial administration is also constantly working on issues related to optimization of legislation and remedying flaws in the legal system.
Local authorities pointed out that the establishment of a sound legal framework for business development is one of the most important factors in improving the business environment and attracting capital under fair competition. Thanks to this, more strategic projects aimed at the intensive growth of the regional economy are being implemented on the island, the report said. As a result, there are "new incentives for the successful formation of the Hainan free trade port."
The newspaper reminds that Hainan has recently attracted a lot of attention from the best lawyers in the world, who open law offices on the island and provide high-quality support to clients. At the same time, Hainan's Department of Justice is actively promoting the development of online consultations and legal services provided to entrepreneurs in a one-stop shop.
According to Chinese economists, all these measures contribute to an increase in the inflow of foreign capital. In January-March, the volume of used foreign investment in Hainan grew 36.9% year-on-year, amounting to $761 million. According to experts, the figure has steadily risen since 2017, despite increasing global turbulence.
On April 13, 2018, Chinese President Xi Jinping announced the creation of an experimental free trade zone and port on Hainan. The goal of the program is to bring globalization onto the island along with international labor distribution, and to lay a solid foundation for innovation. The provincial government is creating an attractive environment for investors and building a well-developed research infrastructure. According to the government's plan, by 2050 the region will be a unique cluster with an advanced economy, which will house campuses of leading universities, advanced laboratories and headquarters of leading multinational corporations.