#China #Hainan #Sustainable Development #Hainan Free Trade Port #Liu Xiaoming

Hainan's Message to the World: An Interview with Governor Liu Xiaoming

Hainan, the southernmost province of China, is on the verge of a historic transformation with the impending launch of its Free Trade Port (FTP). This ambitious initiative, a pivotal component of Hainan's Master Plan for the construction of the free trade zone, is designed to elevate the province into a global trade hub, marked by the implementation of independent customs operations.

In an exclusive interview with Liu Xiaoming, the Governor of Hainan, conducted by CGTN, the governor emphasized the significance of this milestone in the province’s ongoing development. He reassured that thorough preparations are being made to ensure a smooth and effective transition before the year ends. Contrary to notions of isolation, Hainan's customs framework operates on a model of “open first line, controlled second line, and free circulation internally.” This structure not only facilitates international trade but also maintains the essential regulatory oversight required between Hainan and the mainland.

Governor Liu stated, “Our progress has been consistent, with five major systems—policy, infrastructure, risk control, industry, and organizational support—gradually taking shape. We are ready.”

A Business Environment Open to the World

Beyond customs operations, Hainan is committed to enhancing its business environment, recognizing it as a “golden ticket” to achieving success. The province has worked diligently to cultivate a market-oriented, law-based, and globalized business ecosystem. Hainan has emerged as a national leader in streamlining government services, introducing a one-stop business service platform featuring intelligent policy adaptations, credit remediation, and regulatory support. Foreign companies registered in Hainan enjoy equal access to these services.

Addressing concerns relating to foreign investors' experiences in Hainan, Liu Xiaoming stressed the importance of improving internet access and payment conveniences. Various policies have been enacted to facilitate transactions and daily life for foreign enterprises and residents.

Strategic Industries Driving Growth

The province has focused on four key industries: tourism, modern services, high-tech industries, and tropical agriculture. The combined share of these sectors in Hainan's economy has surged from 52.4% in 2018 to an impressive 67% in 2023. Furthermore, Hainan has adopted five strategic directions: agriculture, maritime, aerospace, ecological development, and digital economy.

Particularly, the maritime development has been underscored as a priority. “Harnessing the power of the ocean” stands out as a vital initiative for Hainan, with approximately 2 million square kilometers of ocean, primarily deep waters. With nearly 1,000 enterprises and research institutions dedicated to marine technology and related industries, Hainan’s maritime economy has consistently grown at a double-digit rate, contributing over one-third of the province's GDP. Plans are underway to continue expanding into marine energy, high-end equipment manufacturing, offshore aquaculture, marine biomedicine, and maritime tourism. “Our aim is to create a 'New Hainan at Sea' in the next decade,” declared Liu Xiaoming.

Leading the Way in Environmentally Friendly Development

In addition to economic advancement, environmental sustainability remains an absolute priority. Hainan is recognized for having the best ecological environment in China. A stellar example of Hainan’s green initiatives is the Bo'ao nearly zero-carbon demonstration zone. Through energy-efficient building renovations, renewable energy replacements, and agro-photovoltaic systems, carbon emissions from Dongyu Island, home of the Bo'ao Forum for Asia, have been reduced by 96.2%. The German Energy Agency has verified this as China's first regional demonstration zone for nearly zero carbon.

With independent customs operations on the horizon, an increasingly improved business environment, strategically focused industrial development, and firm environmental commitments, Hainan is poised to emerge as a global leader in trade, innovation, and sustainability. The future of the Free Trade Port promises dynamic growth and enhanced international engagement, ensuring that Hainan's development aligns with both national goals and global economic trends.

Watch the Interview for a deeper insight into Hainan's ambitious plans and its implications for the future.