Page 8 - THE SOUTH CHINA BUSINESS JOURNAL
P. 8
PTH In February 2021, the Special Negative List for the
Hainan Trade Port (2021 Edition) will come into
Last year, China revised its foreign investment effect, which will introduce further measures to
negative list, market access negative list, and promote opening-up in crucial areas, such as value-
encouraged list – to improve market access across a added telecommunications, education, commercial
multitude of industries. services, manufacturing, and mining industries.
Major winners were those operating in the advanced Industrial policies
manufacturing, modern services, and agriculture
industries as well as those looking to investing in the The COVID-19 outbreak affected most if not all,
central, western, and northeastern regions of China. industries. Some sectors boomed, while others
were forced to adapt. All the while, trends towards
Interestingly, the Cross-Border Service Trade digitalization and automation rapidly accelerated.
Negative List, which was signposted for a 2020
release, never came to fruition. This list is the first of The 14th Five-Year-Plan and Central Economic
its kind and will open the services sector – it is one Work Conference Report stated that in 2021 China
to look out for in 2021. will stabilize the proportion of manufacturing while
hastening the development of the digital and services
Also central to China’s plans of market opening is economy.
the construction and expansion of free trade zones
(FTZs) across China. In 2020, China established Atop the agenda is investing in high-end
three new free trade zones in Beijing, Hunan, manufacturing to build indigenous capacity in
and Anhui as well as extended the existing FTZ in technology and innovation.
Zhejiang. These FTZs offered businesses incentives
such as tax cuts or streamlined customs clearance, We have already started to see this come to shape
which are to be replicated and scaled-up at a through:
national-level if they are successful.
• new infrastructure build, such as 5G
However, it was the unveiling of the Hainan Free networks, artificial intelligence (AI), Internet of
Trade Port Masterplan that conjured the most Things (IoT), intercity high-speed rail, new energy
excitement. The new free trade port announced in vehicles (NEVs), integrated circuits (ICs), and
June 2020 established the largest special economic software;
zone in China, which saw import duties scrapped,
income tax rates lowered for high-level talents, and • strengthening its R&D capacity by doubling
the corporate tax capped at 15 percent. down on favorable policies for foreign investors in
Shanghai and Guangdong; and
Hainan continued to roll-out many favorable
policies throughout the year, particularly in the • promoting development of integrated
areas of technology, healthcare, and trade. Some key circuits (IC) – which is the key cog in the advanced
highlights were the announcement of the annual tax- manufacturing production wheel – offering the IC
free shopping quotas, the expansion of the special industry tax breaks, favorable financing measures,
anti-cancer medicine insurance, and the release of added IP protection, R&D, import-export, and talent
the island’s first “Zero Tariff Positive List.” development incentives.
Tangential to this growth is China’s burgeoning
digital economy.
The introduction of 46 new cross-border
e-commerce zones in 2020 is evidence of China’s
rapidly expanding internet economy. The approval
of the new zones effectively doubled the number of
e-commerce zones in the country in one year, and
substantially widened the net of preferential policies
available to businesses.
However, production and trade of goods were not
the only sectors to garner government support last
year. The services industry also received a major
boost, most visibly through the opening of Beijing’s
services industry zones in September 2020, which
5 AMCHAM SOUTH CHINA
Hainan Trade Port (2021 Edition) will come into
Last year, China revised its foreign investment effect, which will introduce further measures to
negative list, market access negative list, and promote opening-up in crucial areas, such as value-
encouraged list – to improve market access across a added telecommunications, education, commercial
multitude of industries. services, manufacturing, and mining industries.
Major winners were those operating in the advanced Industrial policies
manufacturing, modern services, and agriculture
industries as well as those looking to investing in the The COVID-19 outbreak affected most if not all,
central, western, and northeastern regions of China. industries. Some sectors boomed, while others
were forced to adapt. All the while, trends towards
Interestingly, the Cross-Border Service Trade digitalization and automation rapidly accelerated.
Negative List, which was signposted for a 2020
release, never came to fruition. This list is the first of The 14th Five-Year-Plan and Central Economic
its kind and will open the services sector – it is one Work Conference Report stated that in 2021 China
to look out for in 2021. will stabilize the proportion of manufacturing while
hastening the development of the digital and services
Also central to China’s plans of market opening is economy.
the construction and expansion of free trade zones
(FTZs) across China. In 2020, China established Atop the agenda is investing in high-end
three new free trade zones in Beijing, Hunan, manufacturing to build indigenous capacity in
and Anhui as well as extended the existing FTZ in technology and innovation.
Zhejiang. These FTZs offered businesses incentives
such as tax cuts or streamlined customs clearance, We have already started to see this come to shape
which are to be replicated and scaled-up at a through:
national-level if they are successful.
• new infrastructure build, such as 5G
However, it was the unveiling of the Hainan Free networks, artificial intelligence (AI), Internet of
Trade Port Masterplan that conjured the most Things (IoT), intercity high-speed rail, new energy
excitement. The new free trade port announced in vehicles (NEVs), integrated circuits (ICs), and
June 2020 established the largest special economic software;
zone in China, which saw import duties scrapped,
income tax rates lowered for high-level talents, and • strengthening its R&D capacity by doubling
the corporate tax capped at 15 percent. down on favorable policies for foreign investors in
Shanghai and Guangdong; and
Hainan continued to roll-out many favorable
policies throughout the year, particularly in the • promoting development of integrated
areas of technology, healthcare, and trade. Some key circuits (IC) – which is the key cog in the advanced
highlights were the announcement of the annual tax- manufacturing production wheel – offering the IC
free shopping quotas, the expansion of the special industry tax breaks, favorable financing measures,
anti-cancer medicine insurance, and the release of added IP protection, R&D, import-export, and talent
the island’s first “Zero Tariff Positive List.” development incentives.
Tangential to this growth is China’s burgeoning
digital economy.
The introduction of 46 new cross-border
e-commerce zones in 2020 is evidence of China’s
rapidly expanding internet economy. The approval
of the new zones effectively doubled the number of
e-commerce zones in the country in one year, and
substantially widened the net of preferential policies
available to businesses.
However, production and trade of goods were not
the only sectors to garner government support last
year. The services industry also received a major
boost, most visibly through the opening of Beijing’s
services industry zones in September 2020, which
5 AMCHAM SOUTH CHINA
