General

The report of the 20th National Congress of the Communist Party of China emphasizes: "Adhere to a high level of opening up to the outside world, and accelerate the construction of a new development pattern with the domestic big cycle as the main body and the domestic and international double cycles promoting each other." The construction of a free trade port in Hainan is a major strategic decision made by the Party Central Committee to focus on both the domestic and international overall situation and promote the innovative development of socialism with Chinese characteristics. As China's largest free trade pilot zone and the only free trade port with Chinese characteristics, Hainan Province has significant advantages of high-level institutional openness. Relying on China's large-scale market advantage, it can better connect domestic and foreign markets, and play an important role in unblocking the domestic circulation and promoting the mutual promotion of the dual circulation of domestic and international trade.

In recent years, with the vigorous development of the digital economy, policies such as tax incentives in the comprehensive cross-border e-commerce pilot zone and tax exemptions in outlying islands have unleashed spillover effects. The cross-border e-commerce industry in Hainan has developed rapidly, and the pace of development of the export-oriented economy has accelerated. In view of this, Hainan should firmly grasp the important opportunities of the construction of a free trade port and the rapid development of cross-border e-commerce, further unleash consumption potential, promote the sustained recovery of consumption, and enhance the endogenous power and reliability of the domestic macro cycle; Optimize the structure of foreign trade, innovate foreign trade methods, deepen international trade and economic cooperation, and improve the quality and level of the international trade cycle; Promote industrial transformation and upgrading, while gathering advanced factors, promote the free and convenient flow of factors, and better smooth the domestic and international dual circulation.

Promote the release of consumption potential. The continuous growth of Chinese residents' income has led to an increase in consumption levels, which has generated a large demand for imported high-quality goods. Driven by digital technology, China's consumption patterns have shown a trend of integrating online and offline development, and cross-border online shopping has become an important channel to promote domestic consumption upgrading and unleash consumption potential. The "14th Five Year Plan" for the Construction of an International Tourism Consumption Center in Hainan Province has made arrangements to actively undertake the return of overseas consumption, promote consumption quality improvement and capacity expansion, and proposed the construction of a multi-level duty-free shopping system, promoting the formation of a multi-level duty-free shopping system with three types of shopping formats, namely, tax exemption for offshore islands, tax exemption for domestic residents' daily consumer goods, and cross-border e-commerce. We should promote the complementary advantages of offshore tax exemption and cross-border e-commerce, develop the "online shopping bonded+offline self collection" model, and create a new retail format; Further increase the purchase quota of cross-border e-commerce in Hainan, expand the types of duty-free goods, and improve the import convenience of drugs and other products in Hainan Free Trade Port; Make good use of the tax exemption policy for processing value-added goods for domestic sales, vigorously develop the processing of consumer goods, and enable domestic consumers to purchase imported goods with more types, better quality, and lower prices.

Promote balanced development of trade.   Promoting trade balance and achieving high-quality development of foreign trade is an important task for China to build a strong trade country. In January 2020, the entire island of Hainan was included in the pilot scope of cross-border e-commerce retail imports. After five years of rapid development, the import value of cross-border e-commerce retail international trade in Hainan has increased from 105000 yuan in 2017 to 526 million yuan in 2022. Hainan Free Trade Port has the advantage of high-level opening policies and institutional innovation to attract and gather more cross-border e-commerce, laying an important foundation for Hainan to expand imports. Next, we should continue to cultivate and expand various business entities, focus on developing bonded procurement business, and effectively carry out cross-border e-commerce investment and financing services. It is necessary to implement the tax exemption policy for overseas exhibits at the China International Consumer Goods Expo, strengthen its organic integration with cross-border e-commerce, improve the level of exhibition facilitation, and build a new platform for overseas goods to enter the Chinese market.

Promote closer economic and trade cooperation. After the formal entry into force of the Regional Comprehensive Economic Partnership Agreement (RCEP), it has brought development opportunities to the world economy, which is full of conflicts, problems and challenges. Hainan Free Trade Port should make full use of RCEP related policy dividends and free and convenient policies such as international trade, investment, and cross-border capital flow, and take cross-border e-commerce as a starting point to play an important role in accelerating the process of promoting RCEP. On the one hand, it is necessary to focus on developing cross-border e-commerce export business for RCEP member countries, and build Hainan into an "overseas warehouse" within China. Utilize policies such as refueling bonded aviation fuel for inbound and outbound flights and the pilot opening of the seventh navigation right to attract more air and maritime traffic to Hainan, and create an international trade, shipping, and aviation hub for a new land and sea corridor in the west. Improve the level of liberalization and facilitation of goods exports, support the development of key industries such as high-tech industries, tropical characteristic and efficient agriculture, and explore cross-border e-commerce B2B export models. On the other hand, it is necessary to actively develop cross-border e-commerce import business for RCEP member countries. Make good use of the policy advantages of free and convenient investment and talent flow to attract talents from RCEP member countries to invest, start businesses, and obtain employment in Hainan, and deepen cross-border e-commerce industry cooperation.

Promote industrial transformation and upgrading. Using the high-level open platform of Hainan Free Trade Port to develop cross-border e-commerce can effectively gather advanced elements at home and abroad, reduce industrial costs, improve industrial efficiency, promote cross industry integration, and restructure industrial models by strengthening regional collaboration in the industrial chain supply chain. This is of great significance for promoting industrial transformation and upgrading, and consolidating the industrial foundation. It is necessary to focus on building cross-border service trade e-commerce platforms, while promoting the expansion of the scale of service trade, continuously optimizing the structure of service trade, and promoting the continuous expansion of service trade formats to emerging fields such as computers, mobile communications, finance, and technical services. Promote the extension and expansion of industrial chains such as tourism and shopping, logistics and transportation, cold chain warehousing, and financial services through cross-border e-commerce, and cultivate new momentum for high-quality development.