BEIJING, Dec. 17 (Xinhua) -- China's southernmost island province of Hainan is poised to gain a more diversified and higher-quality economic structure following the launch of island-wide special customs operations on Thursday, said Huang Hanquan, a Chinese economist.
Huang, head of the Chinese Academy of Macroeconomic Research, made the remarks in the latest episode of China Economic Roundtable, an all-media talk show hosted by Xinhua News Agency.
During the talk show, Huang highlighted several landmark policies, noting that the share of tariff lines covered by zero-tariff treatment at the Hainan Free Trade Port (FTP) will rise to roughly 70 percent, alongside optimized rules that allow duty-free treatment for value-added processing.
According to Huang, the measures are expected to significantly reduce operating costs for industries such as pharmaceuticals and high-end manufacturing, encourage industrial clustering, and accelerate the development of emerging sectors, including offshore wind power and commercial space.
Meanwhile, expanded duty-free shopping options for travelers and improved purchasing policies for island residents are expected to further stimulate local consumption, Huang noted.
Favorable tax policies are also central to the new economic landscape of Hainan FTP. "Preferential income tax rates will attract more companies and skilled workers, creating higher-quality jobs and reinforcing a virtuous cycle between industry development, talent inflows and economic growth," Huang added.
Beyond the island, the launch of island-wide special customs operations is expected to reshape regional development patterns by easing barriers to the movement of goods, capital, and other factors of production, Huang believes. "Hainan will integrate more closely with surrounding regions, fostering coordinated development across southern China."
At the national level, Huang described the move as a key step in China's shift from an opening-up model focused on the flow of goods and other factors to one centered on institutional opening-up.
Hainan is expected to align more closely with high-standard international economic and trade rules, including those governing cross-border data flows and intellectual property protection, Huang said, adding that successful institutional innovations could be replicated nationwide.
"Launched against a backdrop of rising protectionism and headwinds to globalization, the special customs operations could provide international investors and traders a more stable and predictable institutional environment," said Huang. ■
