China unveils 16 measures to further liberalize Hainan Free Trade Port trade

China unveiled 16 measures on Thursday to further liberalize and facilitate trade in the Hainan Free Trade Port, covering goods and services trade as well as emerging trade models.

The measures were outlined in a notice jointly issued by the Ministry of Commerce, the National Development and Reform Commission, the Ministry of Ecology and Environment and the General Administration of Customs.

For trade in goods, aviation kerosene brought into designated bonded storage facilities in Hainan for re-export will be inspected according to international standards. The Yangpu Economic Development Zone will also be allowed to combine bonded warehouses and export supervision warehouses that store petroleum products—gasoline, diesel, and fuel oil—under a new regulatory model.

The measures include a pilot program allowing imports of faulty key automotive components for research and testing. Once LNG futures are launched, Hainan will also be supported in developing delivery services for them, and foreign companies will be permitted to use bonded facilities at LNG receiving terminals.

The notice also encourages new forms of barter trade, with transactions priced in Chinese yuan.

On trade in services, foreign doctors who are licensed to practice abroad may treat patients in Hainan. Their licenses will be valid for up to three years and can be renewed. Authority to approve international economic and technical exhibitions co-hosted by foreign institutions will be handed to the Hainan Provincial Department of Commerce.

The notice also calls for better domestic trade credit insurance services, more insurance products for international transportation and bonded maintenance, and wider recognition of international professional qualifications. Foreign nationals will get more convenient work permits and residence and stay policies.

To foster new trade formats, the measures call for faster development of offshore trade by improving data sharing. Products made through bonded remanufacturing in Hainan's special customs supervision areas may be sold into China's pilot free trade zones outside the island. Import duties, import VAT, and consumption tax must be paid as required. The products must meet all technical requirements for equivalent new products and be labeled "remanufactured products".

Hainan will also be supported in expanding its bonded maintenance catalog and in deepening economic and trade cooperation with Hong Kong, including aligning rules and improving connectivity with the Guangdong-Hong Kong-Macao Greater Bay Area.