Hainan free trade port construction shows China's determination to promote globalization

Gu Qingyang, associate professor of the Lee Kuan Yew School of public policy at the National University of Singapore, said in an exclusive interview with Xinhua News Agency recently that China's "overall plan for the construction of Hainan free trade port" has expressed China's determination to promote globalization with practical actions in today's complex and severe global trade environment.



Gu Qingyang said that Hainan free trade port strives to achieve the highest level of opening-up, which shows that China's long-standing policy of all-round integration into the world economy will not waver. China will continue to participate in the world economic development by continuously increasing its opening-up efforts.



Gu Qingyang believes that the "first line" operation mode in the plan can make the best use of high-quality resources in the international market and participate in the global economic cycle. The "second line" regulatory model can enable other regions of China to appropriately introduce international resources and experience according to the development needs and risk control.



China has one belt, one road, and the other is the international regional recycling. He pointed out that the international circulation is an important part of the international cycle. The plan clearly stated that Hainan should strengthen exchanges and cooperation with Southeast Asian countries. Hainan's FTA can participate in the international economic cycle with platforms such as the western land and sea channel, ASEAN China (10+1) and the "one belt and one road".



He believed that Hainan free trade port has the conditions to extensively learn from international best practice experience, create a highly international environment, explore new mechanisms, and create a legal and business environment in line with high international standards. These innovative practical experiences are not only conducive to Hainan's own development, but also can be extended to other regions of China in the future.



Gu Qingyang said that the construction of Hainan free trade port is conducive to Chinese enterprises, under a relatively controllable environment, to be familiar with international rules and learn the best business experience in the world, so as to warm up for participating in the global cycle in an all-round way.



Gu Qingyang suggested that the construction of Hainan free trade port should not only be integrated into the domestic economic circulation system, but also play a unique role in establishing domestic production chain, supply chain and demand chain through its own international advantages.



First of all, one of the focuses of Hainan free trade port industry development is tourism and high-end service industry. In the future development of Hainan, if the tourism and service industry have the international leading level, it will be conducive to the industrial upgrading of the whole China and promote the balanced development of the three industries.



Secondly, Hainan can also take advantage of its open economic advantages to introduce high-end talents and production factors from the world to develop high-tech industries, which will play a complementary role in the high-end chain of China's industrial chain.



In addition, the development of Hainan, its neighboring Guangdong, Hong Kong and Macao Bay areas and the central and western regions should also be integrated. In the planning and development of a game of chess, they should complement each other and compete with each other to achieve an effective cycle of various resources.



Gu Qingyang said that the development of Hainan free trade port must make good use of China's domestic and international markets, and at the same time make use of its own unique advantages to play a bridge and leverage role in the interactive process of domestic and international circulation.



On June 1, 2020, the overall plan for the construction of Hainan free trade port was announced, which indicates that the construction of a free trade port with Chinese characteristics has taken a key step.
According to data released by the General Administration of Customs on May 7, China's foreign trade import and export amounted to 2.47 trillion yuan, a year-on-year decrease of 4.9%; among them, exports reached 1.46 trillion yuan, an increase of 1.4%; imports reached 1.01 trillion yuan, a decrease of 12.7%; and a trade surplus of 442.75 billion yuan, an increase of 60.6%.



In the first five months, China's total import and export value of goods trade was 11.54 trillion yuan, down 4.9% year-on-year, the same as the previous four months. Among them, export was 6.2 trillion yuan, down 4.7%; import was 5.34 trillion yuan, down 5.2%; trade surplus was 859.81 billion yuan, a decrease of 1.2%.



The proportion of general trade import and export increased slightly. In the first five months, China's general trade imports and exports totaled 6.91 trillion yuan, down 4.7%, accounting for 59.9% of China's total foreign trade value, up 0.1 percentage point over the same period last year.



imports and exports to ASEAN increased, while imports and exports to the European Unio, the United States and Japan declined. In the first five months, ASEAN was China's largest trading partner. The total trade value between China and ASEAN was 1.7 trillion yuan, an increase of 4.2%, accounting for 14.7% of China's total foreign trade.



The import and export of private enterprises increased and their proportion increased. In the first five months, the import and export of private enterprises reached 5.11 trillion yuan, an increase of 1.8%, accounting for 44.3% of China's total foreign trade value, an increase of 2.9 percentage points over the same period last year.