Hainan Province, China’s southernmost island, is at the forefront of the nation’s efforts to create a world-class business environment. As part of a strategic move to deepen reform and expand opening-up, Hainan is transforming into a high-level free trade port (FTP), setting new standards for economic development and international cooperation.
Since the initiation of the FTP construction in 2020, Hainan has implemented 140 institutional innovations aimed at optimizing the business climate and enhancing social governance. These reforms have yielded significant results, with 11 of the innovations being adopted nationwide by the State Council, China’s cabinet.
In a pioneering move at the end of 2022, Hainan established China’s first dedicated business environment construction department. This department focuses on serving enterprises and spearheading institutional reforms to improve the business landscape. A notable initiative is the development of a credit system that streamlines government services like project approvals and enterprise supervision, ensuring fair treatment and protection of investors’ rights.
The impact of these reforms is evident. Approval times for construction projects have been reduced by 50 percent over the past two years. By the end of March this year, the number of market entities in Hainan had surged by 322 percent compared to 2019. The province’s actual use of foreign investment has seen an average annual growth of over 63 percent from 2018 to 2023, according to government data.
In a bid to foster global partnerships, Hainan launched an initiative in 2023 inviting collaboration among free trade zones (FTZs) worldwide. The initiative has already attracted 34 members, reflecting Hainan’s growing influence and commitment to international trade cooperation.
As Hainan strives to align with top international standards, it is becoming a model for reform and opening-up in the new era. The province’s efforts not only bolster China’s economic development but also present new opportunities for global investors, entrepreneurs, and businesses seeking to engage with the dynamic Asian market.
Reference(s):
cgtn.com
