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Hainan's Ambitious Future: An Exclusive Interview with Governor Liu Xiaoming

In a significant stride towards economic transformation, the Hainan Free Trade Port (Hainan FTP) approaches a pivotal milestone with the upcoming implementation of independent customs operations. This vital development is a cornerstone of the Master Plan for Building the Hainan Free Trade Port, emphasizing a shift towards a more autonomous and progressive economic framework. Governor Liu Xiaoming discussed these advancements in a recent interview with CGTN, shedding light on the province's ambitious projects and strategic directions.

The notion of isolation surrounding the customs initiative is misleading. Governor Liu highlighted that the operational model follows a clear structure: "front line open, second line controlled, and free movement within." This means while Hainan enhances international trade, there remains a robust regulatory framework that safeguards the interests of both the province and the mainland. Liu confidently announced, "Progress has been smooth with five essential systems developing: policy, infrastructure, risk control, industry, and organizational support. We are ready for this transition."

A Global Business Landscape

Hainan is keen on creating a conducive business environment, recognizing its central role in attracting foreign investment. The provincial government aims to cultivate a market-oriented, law-based, and globalization-friendly landscape. As part of this effort, Hainan has introduced a one-stop enterprise service platform to streamline processes for foreign businesses, offering services such as smart policy matching, credit support, and regulatory guidance—all ensuring that foreign enterprises enjoy equal access.

Addressing the concerns raised by foreign investors regarding operational challenges, Liu emphasized the continual enhancement of internet accessibility and payment systems to facilitate smoother transactions. These initiatives reflect Hainan's commitment to integrating international standards and practices in fostering a favorable business climate.

Driving Economic Growth Through Key Industries

Hainan's economic strategy is increasingly anchored around four pivotal sectors: tourism, modern services, high-tech industries, and tropical agriculture. The contribution of these industries to Hainan's overall economy has seen a significant rise from 52.4% in 2018 to 67% in 2023. This upward trend demonstrates the province's focused commitment to invigorating economic growth through strategic industrial development.

Maritime development, in particular, has emerged as a fundamental priority for Hainan. Governor Liu stated, "Harnessing the power of the ocean" is not just a vision but an operational goal. The province controls approximately 2 million square kilometers of ocean space, primarily in deep-sea areas. With about 1,000 active enterprises and research institutions dedicated to deep-sea technology, Hainan's maritime economy has registered impressive double-digit growth and now accounts for over one-third of the local GDP. Future plans involve expanding initiatives in deep-sea energy, high-end equipment manufacturing, offshore aquaculture, marine biomedicine, and maritime tourism, with Liu projecting, "Our aim is to develop a 'new Hainan on the sea' in the coming decade."

Commitment to Environmental Sustainability

Environmental sustainability is deeply ingrained in Hainan's growth narrative. The province has become synonymous with ecological preservation, often cited as having the best environmental standards in China. A testament to this commitment is the establishment of the Bo'ao near-zero carbon demonstration zone. Innovative approaches, such as energy-efficient renovations and renewable energy solutions, have led to remarkable emissions reductions—96.2% on Dongyu Island, the official site for the Bo'ao Forum for Asia. This initiative has garnered recognition, making it China's first regional near-zero carbon demonstration zone certified by the German Energy Agency.

In conclusion, with the prospect of independent customs operations on the horizon and an ever-evolving business ecosystem, Hainan is positioning itself as a global leader in trade, innovation, and sustainability. The Free Trade Port's trajectory promises a blend of robust economic advancement and concerted efforts towards environmental stewardship, aligning local developments with broader national and global economic trends.