An aerial photo shows the main structure of the Haikou Xinhai ro-ro passenger terminal. [Photo by Zhong Jianjia/for chinadaily.com.cn]

Since the implementation of the Hainan Free Trade Port Law, released on June 10, 2021, Hainan province has focused on institutional innovation and made sustained efforts to integrate international economic and trade rules with local laws and rules, ensuring steady growth of the Hainan FTP.

On June 5, a seminar was held in Haikou, the provincial capital, to strengthen legal support for the implementation of key polices.

As the "fundamental law" and "framework law" for the Hainan FTP, the Hainan Free Trade Port Law outlines a series of provisions for its development and governance.

 
Over the past four years, local officials have conducted targeted campaigns and training programs among different groups of people, promoting the law in government institutions, rural areas, communities, businesses and schools.

Meanwhile, the Standing Committee of the Hainan Provincial People's Congress has pushed forward legislative projects based on the practical needs before and after the special customs operations, ensuring the legislative work leads reform and innovation.

The committee has also formulated a number of special regulations to support the law's implementation, which involve trade and investment liberalization, business environment, ecological protection and risk prevention; and made remarkable achievements in advancing exploratory, innovative and pioneering legislation.

So far, 46 Hainan FTP regulations have been enacted, accelerating the establishment of the Hainan FTP legal system and promoting the port's long-term growth.

Expanding institutional opening-up

Since the Hainan Free Trade Port Yachting Industry Promotion Regulation took effect on July 1, 2022, the province has built 14 yacht ports, with the number of registered yachts exceeding 1,780, ranking among the top in China.

Similarly, the Regulations on Facilitating Drug Importation has led to a substantial growth in imported drug volume and value.

All these changes point to one trend: leveraging legislation to drive institutional innovation and industrial growth.

Following the high-standard requirements for FTP construction, Hainan has conducted extensive research on reform-related legal issues during the past four years to foster institutional innovation and ensure that the "special, preferential policies" granted by the central government are implemented effectively through precise, executable regulations.

For example, the Hainan Free Trade Port Minimal Approval Regulations, which took effect on Jan 1, has streamlined the approval procedure in the investment and engineering sectors.

The Hainan Free Trade Port International Commercial Arbitration Development Provisions, which took effect on July 1, 2024, aligns with international arbitration norms, enhancing the internationalization of arbitration and exploring interim arbitration.

These innovations demonstrate Hainan's commitment to aligning with international trade rules, expanding institutional openness based on legislation, and stabilizing expectations from all sectors for the port's development.

Thanks to these institutional innovations, the province's total foreign trade value reached 277.65 billion yuan ($38.63 billion) in 2024, up 20 percent year-on-year — one of the fastest growth rates nationwide.

Trade with countries involved in the Belt and Road Initiative surged by 40 percent, accounting for nearly 60 percent of the provincial total. In addition, over 1,700 new foreign-funded enterprises were established, marking a 10 percent increase.

Meet the Demands of a New Era

Over the past four years, Hainan has remained committed to advancing legislation that fosters healthy development, good governance and that responds to the people's aspirations for a better life.

Just three months after the Hainan Free Trade Port Law took effect, the province introduced its first four supportive regulations: the Hainan Free Trade Port Regulations on Optimizing the Business Environment, the Hainan Free Trade Port Provisions Against Consumer Fraud, the Hainan Free Trade Port Fair Competition Regulations, and the Hainan Free Trade Port Social Credit Regulations.

These regulations target key aspects of the business environment, demonstrating Hainan's determination to build a market-oriented, law-based, and international business climate.

The Hainan FTP's sound ecological environment is its greatest advantage. Adhering to an eco-centered development strategy, Hainan has pushed legislation to build a green, low-carbon free trade port, and it has implemented the strictest ecological and environmental protection measures.

For instance, it became the first in China to establish a local legislative framework for ecological assessment and accountability, setting new benchmarks for environmental governance under the Hainan FTP initiative. 

In addition, Hainan remains a people-centered approach, providing robust institutional support for issues related to livelihoods and social governance.

Please click this link for legal services in Hainan.

https://www.hnac.org.cn/

Source: The People's Government of Hainan