China plans developing Hainan Free Trade Zone to boost trade with ASEAN countries

• Oct 19, 2018

Oct 18, 2018 (China Knowledge) – The Chinese State Council has unveiled its plan to establish and develops the Hainan Free Trade Zone (FTZ) on Tuesday. The FTZ will demonstrate China’s commitment and resolution to align with World Trade Organisation (WTO) principles of free trade, as it opens up its market to the world.

The State Council will provide the FTZ with the necessary support and autonomy for reforms to take place, in order to promote economic globalisation. The acceleration of plans will foster a law-based, international, and convenient business environment for the potential and interested businesses. The FTZ will provide a fair, open, unified, and efficient market environment, according to the issued statement about the plan.

Hainan will be transformed into a key gateway to the Asia Pacific and Indian Ocean for China. The Hainan FTZ will push for reforms for faster establishment of new institutions in view of a more open economy, the promotion of innovative practices and development of the service sector.

The FTZ will also speed up efforts to transform government functions. It will focus on establishing major risk control mechanisms and trial programs in areas such as medical care, tourism and green development.

ASEAN was Hainan’s largest export trade partner in 2017. Chinese leader Xi Jinping has also highlighted the strategic importance of Hainan near ASEAN countries, emphasising on the importance of Hainan as a centre for trade with Southeast Asian countries.

As such, the acceleration of Hainan FTZ will allow China to better establish trade ties and increase economic cooperation with ASEAN amidst trade tension with U.S.

Source: https://www.chinaknowledge.com/News/DetailNews/81117/China-plans-developing-Hainan-Free-Trade-Zone-to-boost-trade-with-ASEAN-countries