Wei Jianguo: the business environment in Hainan may be better than silicon valley in the future

 Wei Jianguo: the business environment in Hainan may be better than silicon valley in the future

Wei Jianguo (former Vice Minister of the Ministry of Commerce, vice president of China International Economic Exchange Center, columnist of Netease Research Bureau)

Global attention will be focused on China

Wei Jianguo

From the perspective of top-level design, the plan aims at the international level and creates a new platform for all-round opening up. Therefore, it has a lot of advantages and highlights, especially in tax preference. For example, the progressive tax rate of personal income tax shall not exceed 15%, for enterprises registered in Hainan free trade port and operating substantially (except for industries with negative list), the enterprise income tax shall be levied at 15%. We refer to the experience of Dubai port and Singapore, and do it more thoroughly and step by step.

There are 60 dry goods in the plan, mainly focusing on the following aspects:

Second, we should stress reform and innovation and strengthen the awareness of innovation. In this respect, Hainan free trade port has greater autonomy than other free trade areas. For example, we should first explore the establishment of laws and regulations, have a more flexible and efficient regulatory model and management system, and make great efforts to break down the barriers to the flow of production factors and accelerate the opening up of the system. The general requirement is to drive the reform to deepen in an all-round way with high-level opening up, strengthen the integration of reform system, and pay attention to coordinated promotion, so that innovation in all aspects can cooperate with each other, complement each other, and improve the overall efficiency of reform and innovation.

Third, development goals. The plan not only plans the overall schedule and road map, but also puts forward specific implementation plans. The development goal of Hainan free trade port is to reach the first-class level in China, and to have influence and competitiveness in the world.

Secondly, the design of system is very important. In the design of the system, the goal of free trade facilitation is three zeros - zero tariff, zero barrier and zero subsidy. The liberalization and facilitation system based on zero tariff is beneficial to the overall trade, including the trade in goods and services. And for foreign businessmen, both access and quasi operation are required. At present, some free trade zones allow foreign businessmen to enter, but it is not possible to restrict their business areas.

Let go of the front line. There is no tax or inspection on transshipment goods, and efficient front-line liberalization of exports.

On the whole, it is necessary to innovate and improve the system of investment freedom, facilitate the implementation of the process of investment with the focus on supervision, and ensure that everything must be done and everything is not disturbed. Whats more, a complete and fair competition system should be implemented in Hainan free trade port. Foreign capital, domestic capital, state-owned enterprises, small and micro enterprises should be treated equally in terms of the acquisition of production factors, the formulation of standards, the permitted business scope of access, etc. Break the administrative monopoly, prevent market monopoly and maintain the market order of fair competition. More importantly, the plan provides a reassuring pill - to improve the property rights protection system. We will strengthen the protection of small and medium-sized investors, increase the protection of intellectual property rights, establish a credit classification system, impose penalties, and strengthen the application of blockchain technology in intellectual property transactions and certificates.

There are many preferential tax policies in the plan. For example, the personal income tax of talents is up to 15%, which reflects the respect for talents and knowledge, and also increases the efforts to attract talents in Hainan; encourage enterprises to implement 15% of the enterprise income tax, and exempt from import tariff, import value-added tax and consumption tax. For the tourism industry, modern service industry and high-tech industry enterprises established in Hainan free trade port, the income from newly increased overseas direct investment before 2025 shall be exempted from enterprise income tax.

Therefore, the biggest highlight of this reform is to support the tax, fee and finance. For the first time, the plan puts forward the negative list of the implementation of cross-border service trade of Hainan free trade port, plus the negative list of the implementation of foreign investment access of Hainan free trade port, including visa free, expanding the scope of cross-border assets, giving priority to supporting listed companies, building an international intellectual property exchange in Hainan, etc., all of which are strengthened through taxes, fees and finance.

Hainan free trade port will be the sea god needle of the South China Sea in the future

This is a test for Hainan and a great opportunity for the world. After the steady implementation of the plan, Hainan free trade port will surely be built into a leading and iconic free trade port in the world, so that the global benefits of capital, talents, goods, services, brands, culture, health care and education can be brought into full play in this free trade port.

Why Hainan is the construction site of free trade port? Because Hainan is not only Chinas strategic fulcrum for Southeast Asia, but also for the world. After Hainan free trade port, it was also the sea god needle of the South China Sea. Therefore, all departments should strengthen support and overcome difficulties in the construction process.

Hainan may form a better business environment than silicon valley in the United States

At present, Hainan should seize this opportunity, step by step, and promote this work in the spirit of nail in the nail. Although we are now under the influence of the epidemic, we need to carry out the plan in a spirit of bravery and courage. It is estimated that we will soon achieve some remarkable achievements.

I think Hainan will be a hot land for investment in the future. In the future, Hainan may form a better business environment than silicon valley, attract a large number of college students, and attract a large number of senior talents in all aspects. In terms of education, it may attract many famous foreign universities, such as Harvard University and Stanford University, to run local schools.

Finally, the summary emphasizes three points:

Second, the whole province has never been used as a test field in the world. Because it needs a strong base, a huge hinterland, with a population of 1.4 billion, Chinas manufacturing industry, Chinas current import and export trade, and Chinas foreign investment as support. China now has not only trade in goods and processing, but also cross-border e-commerce, including the new AI, big data and cloud computing to be implemented in the next step, which will produce fruitful results in Hainan.

Third, one belt, one road, will become a great fulcrum in Hainan. From here, we will have more ships going out. Hainan can have more foreign investment, not only to increase the radiation impact on Southeast Asia, but also to promote the development of the Silk Road Economic Belt by sea transportation and connecting with Guangdong, Hong Kong and Macao Bay area.

This article is the exclusive contribution of Netease Research Bureau and does not constitute an investment decision.

Produced by Netease Research Bureau (wechat Company No.: wyyjj163)

Netease Research Bureau is a professional financial think tank created by Netease News. It integrates the original multimedia matrix of Netease financial, relies on the wisdom of hundreds of top economists at home and abroad, analyzes and interprets the hot topics of economics rationally and objectively, and creates a forward financial think tank with an attitude. Welcome to contribute (email: [email protected] uff09u3002

Move wechat official account to see the content that cant be seen here

[excellent recommendation] Click to enter Netease Research Bureau u00b7 China Version > >

[highlights] Click to enter Netease Research Bureau International Edition > >

The best performing Australian market in the world in the past 120 years cant bear it

Why cant I buy a mask? Popular science: masks are high-tech products