China is planning to turn a Southern province of Hainan to a free-trade zone, according to a senior Chinese official. The zone focuses on different industries than Hong Kong, which is not a substation of Hong Kong.
Lin Nianxiu, a deputy director of top state planning agency the National Development and Reform Commission, said the new free-trade zone in Hainan is a compliment but not competing with Hong Kong. The zone would mainly play an important part in the tourism and hi-tech industries.
Lin also mentioned that Hainan would promote the linkage with the Greater Bay Area which is a government’s scheme to construct an integrated economic hub around the Pearl River Delta. The linkage could help to strengthen Hong Kong’s prosperity in the future. Hong Kong, Macau and cities near the province of Guangdong would be connected by the hub.
Hainan located in an island with estimated 35,000 square kilometer at the southern tip of China. The island will be developed into a giant free trade port with measures boost its tourism and technology development. Most products and commodities are duty-free. Lower income tax and relaxed visa requirements for foreign tourists and professionals would be promised.