China unveils plan to make Hainan a free trade hub like Hong Kong, Singapore as risks of US decoupling loom
- Beijing has outlined plans to turn Hainan into a ‘free trade port’ similar to Hong Kong, as China faces the risk of decoupling with the United States
- The tropical island will benefit from a low income tax rate, freedoms in trade, investment, capital flows and an easier investment environment
Beijing on Monday outlined its plan to make the 35,000 sq km island a “free trade port” by lowering the income tax rate for selected individuals and companies to 15 per cent, and relaxing visa requirements for tourists and business travellers.
The island province of 9.5 million people will also enjoy freedoms in terms of trade, investment, capital flows and the movement of people and data by 2035, as it moves toward becoming a hub of “strong international influence” by the middle of the century.
The project to make Hainan, which covers an area 30 times that of Hong Kong, into a regional trade, shopping and shipping centre has been “planned, arranged and promoted by General Secretary Xi Jinping personally”, according to the government statement.
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Xi announced in April 2018 that the island, a popular holiday destination sometimes referred to as China’s Hawaii, would be made into the nation’s largest free-trade zone. The Hainan government has sent delegations to Hong Kong, Singapore and Dubai to learn “free trade” practices.
