Hainan expands market before launching new offshore zone mechanisms

 

HAIKOU /China/, February 19. /TASS/. Hainan authorities made progress in 2021 in expanding the regional market to create a special offshore zone on the island and launch new free trade port mechanisms ahead of the transition of the local customs control system to a new mode of operation, Wu Mingyue, ddeputy head of the Provincial Development and Reform Commission, said.

"Our province has made good progress in the first phase of market expansion," he told a news conference on the implementation of the regional government's special measures announced in early April last year. "In the next phase we will strengthen coordination between the governing and subordinate structures, we will take the initiative into our own hands <...> to strengthen the strategic leverage involved in the run-up to the closure of customs offices throughout the island (referring to the transition to the foreign trade mechanisms of the new offshore model until 2025 - TASS note)".

As the official clarified, Hainan showed encouraging results last year in accordance with the task set to develop a cultural and humanitarian program, to implement projects on establishing an advanced medical and health care system, as well as in the field of environmentally friendly energy. In the near future, he said, the provincial government will continue to implement consistent reforms in these areas as well as in the financial sector and education.

New steps in the cultural sector

Among the achievements in recent months, Wu Mingyue mentioned the Hainan International Cultural Art Trading Center in Sanya City, which opened in late January. Beijing Poly International Auction held a festive auction to celebrate its opening, with a total of 800 luxury and antique items on display and sales of more than 100 million yuan (more than $15.7 million).

"This art trade center will facilitate exhibitions, deals and auctions, <...> help reduce the cost of buying art," he stressed. According to the official, one of the main tasks in this direction is to form a coherent industry chain in Hainan that will interact closely with international markets.

Modern online health services

The deputy head of the committee noted that in recent months, regional authorities have created a solid foundation for the development of a multifunctional platform to provide high-quality telemedicine and pharmaceutical services online. "This is a very important project. The Hainan e-prescription center is the first provincial-level government pilot platform created to provide demand-driven services to the public, based on comprehensive health insurance, health care and pharmaceutical control data," he said.

Wu Mingyue explained that the new system will simplify procedures related to diagnosis and prescription, purchase and delivery of drugs. "This prescription center will involve all medical institutions in Hainan. Gradually, it will form a system of interaction on a national scale," he added.

Advanced aesthetic medicine

Wu Mingyue also said that the provincial government is successfully developing the beauty and health industry. In this regard, some 120 kinds of national and foreign cosmetology products will already be on display in Hainan in the near future. "These advanced products from around the world are being introduced on an experimental basis under licenses," he said. "They will be available on the territory of the Hainan Boao Lecheng International Medical Tourism Pilot Zone after they pass the inspection of the competent agencies."

The official added that amid the ever-growing demand, local authorities intend to actively attract qualified personnel both from other regions of the PRC and from abroad. "Lecheng will become a key center for applying advanced drugs and providing high-quality aesthetic medicine services," the deputy head of the committee said.

According to Wu Mingyue, an international consumer zone is also being established on the island. It is closely connected with the tourism projects of the One Belt, One Road Initiative. "This way, everyone who will visit Hainan for vacation will not only be able to take advantage of [the local system] of duty-free trade, but also try out high quality cosmetology services without leaving the country," the official explained.

Advanced pharmaceuticals

Wu Mingyue also pointed out that the authorities have successfully implemented a program to establish a large-scale market for medical products in Hainan. For this purpose a pharmaceutical cluster represented by the leading companies of the PRC and other countries is being  created in the administrative center of the province - Haikou city. In addition, intensive work is underway to create research and production facilities that will enable China's southernmost region to lead the way in cutting-edge technologies in healthcare.

"Once in operation, these projects will have an added value of 2 billion yuan (more than $315 million) a year, generate 200 million yuan (more than $31 million) in annual tax revenue and create about 900 new jobs," Wu Mingyue said. As he noted, it is about forming an industrial base for the production of medical equipment created with the latest developments in smart technology.

"We will apply effective incentives so that advanced pharmaceutical companies build innovation capacity and promote R&D projects," the official added.

Development of environmentally friendly transport system

The deputy head of the committee recalled that by 2030, local dealerships will completely stop selling cars on traditional fuels. A highly efficient network of gas stations for hybrid and electric cars will be created all over the island. For this purpose, a special operator company Yizhangwang and a special platform have been established, with the Hainan Electric Grid Company and the Hainan Transportation Investment Holding Company participating in the development.

According to Wu Mingyue, the project is carried out using digital technology. An app has been created for the convenience of green vehicle owners, allowing them to access the service throughout the island. "Yizhangwang will continue to optimize the control functions of the relevant platform, <...> introduce smart technology, and help make the service more convenient for individual users and companies," he summarized.

In January 2021, the Hainan administration said that by 2025 the local customs checkpoints will cease to operate in their current form. According to Shen Xiaoming, secretary of the provincial party committee, by 2023 all the necessary conditions for this will be in place, and then within two years the authorities plan to agree on the secondary details of the new mechanism. In about three years, island residents will be categorized as offshore residents with a special legal status different from other mainland Chinese citizens.