#China #Hainan #Hainan Free Trade Port #Liu Xiaoming #independent customs

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

In an exclusive conversation with CGTN, Liu Xiaoming, the Governor of Hainan Province, shared insights into the progress and future of Hainan's Free Trade Port (FTP). As Hainan's FTP approaches a historic milestone with the implementation of independent customs operations, this initiative represents a key element in the continuous development and globalization of Hainan.

Hainan's FTP has been a central focus of provincial government reports for the past seven years, and the significance of this initiative has not gone unnoticed at the highest levels; Chinese President Xi Jinping highlighted the importance of a smooth and orderly transition to this new framework. Liu Xiaoming confirmed that preparations are well underway for this critical change, which is slated to conclude by the end of the year.

Contrary to misconceptions regarding isolation, Hainan's customs system has adopted a model that is designed for free movement while also enabling robust oversight. The framework is often summarized as “the first line open, the second line controlled, and free movement within.” This strategic design facilitates international trade while ensuring necessary regulatory oversight between Hainan and the mainland.

Governor Liu stated, "The progress has been steady, with five core systems gradually taking shape: policy, infrastructure, risk control, industry, and organizational support. We are ready."

Enhancing the Business Environment

Beyond customs operations, Hainan is committed to refining its business environment, which officials view as critical for future success. Steps have been initiated to create a market-oriented, law-based, and globally integrated business environment. Hainan is now recognized as a national leader in optimizing government services, having introduced a unified platform for enterprise services that integrates intelligent policy compliance checks, credit restructuring, and regulatory support. Foreign companies registered in Hainan enjoy equal access to these enhanced services.

In response to inquiries about the perceptions of foreign investors in Hainan, Liu Xiaoming emphasized the importance of improving Internet access and payment convenience. Policies have been implemented to streamline transactions and enhance daily life for foreign enterprises and residents.

Supporting Strategic Growth Industries

The province is focusing on four primary sectors: tourism, modern services, high-tech industries, and tropical agriculture. The combined contribution of these sectors to Hainan's economy has dramatically increased from 52.4% in 2018 to an impressive 67% by 2023. Furthermore, Hainan has embraced five strategic directions: agriculture, maritime industries, aerospace, green development, and the digital economy.

A key focus area is the development of maritime industries, with initiatives around “ocean energy utilization” taking center stage. Controlling approximately two million square kilometers of ocean territory, predominantly deep water, Hainan's maritime economy, which includes nearly 1000 enterprises and research institutes engaged in deep-sea technologies, has shown double-digit growth, contributing over a third of the province's GDP. Plans are underway for further expansion in deep-sea energy, high-tech equipment manufacturing, coastal aquaculture, marine biomedicine, and marine tourism. Liu Xiaoming proclaimed, “Our aim is to create a ‘new Hainan at sea!’ over the coming decade.”

Leading in Green Development Initiatives

Environmental sustainability remains a paramount priority alongside economic development. Hainan is renowned for having the best ecological environment in China. A prime example of its green initiatives is the Boao demonstration zone, which boasts nearly zero carbon emissions. Through energy-efficient building retrofitting, a shift to renewable energy, and agricultural photovoltaic systems, carbon emissions on Dongyu Island, the permanent venue for the Boao Forum for Asia, have reduced by 96.2%. The German Energy Agency has certified it as the first regional demonstration zone in China with nearly zero carbon emissions.

With the onset of independent customs operations, an ever-improving business environment, strategic industrial development, and firm commitments to environmental sustainability, Hainan is poised to emerge as a global leader in trade, innovation, and sustainable development. The future of the Free Trade Port promises dynamic growth and expanded international engagement, aligning its development with national objectives and global economic trends.