China's Ministry of Commerce plans to introduce new liberalization policy on Hainan

 The Chinese Ministry of Commerce intends to create a more open economy on the island

HAIKOU, August 19. /TASS/. China's Ministry of Commerce intends to test a number of economic liberalization measures in some experimental areas of the Island of Hainan, reported the Hainan Daily with reference to the complex program for the innovative development of pilot zones.

The Chinese Ministry of Commerce proposes to quit some formalities of doing business on Hainan to create a more open economy on the island. For example, the country's authorities are considering the possibility of canceling the registration of foreign trade participants involved in the export and import of technologies. According to the government's plans, this measure should help revitalize the economic activity of these market players.

In addition, the authorities plan to cancel the registration procedures for franchising on Hainan. Franchisors (those who provide a franchise) will only need to disclose information about those who purchase a franchise on the website of the Ministry of Commerce at least 30 days before an agreement between them is reached. This will not apply to franchise businesses between regions.

Also, the Chinese authorities are going to allow foreign institutions to independently hold economic and technological exhibitions on the island. At the same time, the title of events should not include the words "China", "Chinese" and other similar wording. These events must be coordinated with the Hainan administration, regardless of whether they are held exclusively by foreign organizers or jointly with the Chinese partners.

In addition, the authorities intends to liberalize policies in Hainan's Lecheng International Medical Tourism Zone. They will simplify the procedure for obtaining visas for foreign patients, payments for treatment and diagnostics, as well as calculating health insurance.

In June the Central Committee of the Communist Party of China and the Сhinese State Council published the “General Program for the Establishment of a Free Port on Hainan,” according to which the island’s administration intends to create an effective system to fulfill a number of important social and economic goals by 2025, and within 10 years to decisively enhance the innovative mechanisms for the region's development.