A few days ago, the State Council approved the establishment of China (Hainan) Pilot Free Trade Zone (Hainan Pilot Free Trade Zone for short below) and issued the Master Plan to Establish China (Hainan) Pilot Free Trade Zone.
The Plan clearly defines that efforts should be made to exert the overall advantages of Hainan Pilot Free Trade Zone, focusing on building a pilot zone to comprehensively deepen reform and opening up, a national ecological civilization experimental zone, an international tourism consumption center and a national key strategic service support zone. The plan implements a more proactive opening strategy, speeds up the construction of a new open economy system and promotes the formation of a new pattern of all-round openness in a bid to build Hainan into an important opening-up gateway of China to the Pacific Ocean and the Indian Ocean.
In the Plan, 40% contents involve medical treatment and public health, cultural tourism, ecological green development and other characteristic pilot contents in line with Hainan's development orientation, reflecting the latest development orientation of Hainan.
There are 16 regulations out of 29 of them in the Master Plan applicable to foreign business, including many fields such as tourism, services and high and new technology. The Plan puts forwards the efforts that will be made to speed up the construction of a new open economy system and substantially relax the regulations on the admission of foreign investment. Specifically, the examination and approval authority for the admission of foreign investment to the value-added telecommunications services to Hainan Province to permit foreign investors to invest in China's Internet virtual private network services (the stock's proportion of foreign capital within 50%); the stock's proportion of foreign capital of life insurance companies is eased to 51%; the restrictions on foreign investment in new energy auto manufacturing will be abolished.