CETV "Chang'an Street" interviews Sang Baichuan, Dean of the Institute of International Economics at the w88 casino, on the construction of the Hainan Free w88 Port
(Source: CETV "Chang'an Street" 2020-06-07)
Host: Hainan started to build a free pilot zone in 2018. Now two years have passed, and we have built Hainan into a free w88 port. So what is the difference between the two?
Sang Baichuan: I think the fundamental difference between the free w88 pilot zone and the free w88 port is that the free w88 zone explores integration with international advanced economic and w88 rules and boldly carries out reform and opening up experiments, while the free w88 port implements a management model within and outside customs, and is a higher-level economic free zone.
Host: I can understand that the free w88 zone and the free w88 port, the first one is a shallow exploration, and now it has entered a deep water exploration. Can I understand it this way?
Sang Baichuan: It can be understood this way. The reason is that international economic and w88 rules are facing reconstruction after the 2008 financial crisis. Some developed countries seek to change the original international economic and w88 rules and promote a higher level of economic and w88 liberalization. Can China accept this? Therefore, we are testing these economic and w88 rules in the free w88 pilot zone and connecting them with international economic and w88 rules. This is our main purpose. At the same time, we are also expanding opening up to the outside world and promoting domestic reform, opening up, and development. As for free w88 ports, there are actually some experiments in the international arena, such as Hong Kong, Singapore, and Dubai. They are all free w88 ports. There are also free w88 parks abroad. So many free w88 ports and free w88 parks actually implement the management model of domestic and foreign customs. Well, China's past free w88 pilot zones did not explore and implement a management model within the country and outside customs. As for our free w88 port, it is very clear that its positioning is to implement a management model inside the country and outside customs in accordance with the standards of international free w88 ports. "Release the first line and control the second line", goods entering Hainan must implement "zero tariffs" and "zero barriers", and goods entering the mainland from Hainan will be managed according to the management model entering the customs.
Host: We admit that Hainan has the advantage of being a latecomer, but it also has shortcomings. So what are Hainan’s advantages and shortcomings?
Sang Baichuan: I think its advantage lies in the innovation of the system. If there is no institutional opening up and no set of institutional arrangements for a free economy, such as free investment, free and convenient w88, free and convenient capital entry and exit, no free and convenient personnel exchanges, and free and convenient transportation, without these economic liberalization and facilitation, its advantages actually do not exist in the country. On the contrary, its disadvantages are obvious. Its talent structure is incomparable with some central cities such as Shanghai and Beijing, and it is also incomparable with many provinces in China. In this situation, it does not have advantages; then naturally In addition to the tropical tourism resources, other tropical agricultural resources and forest resources do not actually have the advantages to develop modern manufacturing, modern service industries, etc. So these do not actually have the original and very strong competitiveness and foundation. Therefore, through institutional innovation, a highly free and convenient economic zone will be formed, giving full play to the role of the market in allocating resources, and docking with international economic rules. At this time, it will form a gathering of funds, personnel, commodities, etc. I think the prospects for some industries are still OK.
Host: When we talk about Hainan’s reform and opening up, we can’t avoid talking about our reform and opening up in 1978. So do you think this area of Hainan didn’t develop when it was “young”? Why can it definitely develop when “people reach middle age”?
Sang Baichuan: From the perspective of Hainan’s history and future, it used to be China’s South China Sea strategic frontier at the beginning of its opening up. The center of economic construction at that time was not there. Ten years later, the Hainan Special Economic Zone, then known as China's largest special economic zone, was established in 1988. People were full of confidence that it could develop first with the help of preferential policies and institutional advantages. However, due to various constraints such as concepts, talent structure, natural conditions and infrastructure, Hainan missed the opportunity for effective institutional innovation and rapid development. Although he has achieved certain results, there is still a big gap between it and people's expectations. A lot of resources have been used in real estate speculation, etc., and its economic advantages have not been fully reflected. At this time, Shenzhen, other special zones, and even coastal open cities, economic and technological development zones, and other areas are developing rapidly. However, Hainan has not formed a group impact at this time, so this kind of innovation has not made greater achievements in industrial cultivation and opening up.
Host: Dean Sang, when you see such a plan, what do you think is the biggest benefit to Hainan?
Sang Baichuan: I think that at this stage before 2025, the most prominent thing about this construction plan is the tax benefits. So if you look at it from the perspective of a long-term construction plan and an overall plan, I think the biggest advantage is the five major free w88 conveniences: free and convenient investment, free and convenient cross-border capital flows, free and convenient personnel movement, free and convenient personnel entry and exit, and free and convenient transportation movement. This is consistent with the positioning of the free w88 port. If it is really If it can achieve freedom and convenience, it will indeed greatly reduce the cost of w88 and attract investors to enter. At the same time, it will also make outstanding talents willing to settle down, and transportation will be greatly improved. The central position of international logistics may also be established from this, so I think its outstanding feature is that it emphasizes economic freedom and facilitation.
Host: If we look at these free w88 ports in the world, we will find that they are all endogenous. So, as a free w88 port endowed by policy, how will Hainan be different from them?
Sang Baichuan: I think the world’s original large free w88 ports are all related to their original natural conditions. For example, Hamburg in Germany, Rotterdam, Hong Kong, China, and Singapore all have unique natural advantages because they have relatively independent customs clearance conditions and independent geographical units, which facilitate re-export w88 and so on. Then we implement the construction of free w88 ports promoted by policies. Some places also have some practical experience, such as Dubai. In the past, people did not think it could become an economic center. However, through policy promotion and infrastructure construction system, it has attracted a large number of tourists and has become a shopping paradise and a tourism paradise. In addition, I think Hainan actually has its own conditions. It has very rich tropical tourism resources. This is a unique place in a large country with a population of 1.4 billion. So if you want to engage in tropical tourism If you want to travel abroad, you should go to China's Hainan; in addition, it has a very long coastline, and it is a relatively independent geographical unit, which is convenient for customs operations. In other words, it implements this kind of management model inside and outside customs. It is almost impossible to compare with Hainan. It can form a natural state of relative isolation from the mainland, so it is appropriate for it to choose to build a free w88 port here. It has a foundation. But with such a foundation and such conditions, can it become an internationally competitive free w88 port? This is not necessarily true. It depends entirely on a set of institutional innovations, and its attraction must be formed through the construction of a high-level open system.
Host: Just now we talked about Hainan’s so-called late-mover advantage. In fact, when we start to build Hainan into an international w88 port, it may have a late-mover advantage, which is what the title should mean, because maybe endogenous free w88 ports have a history, and it may It may be long or short, but because we have such a late-mover advantage, we can use policies to make up for the space for its growth. If our policy design is more in place and the level of governance is higher, then such a governance time can be shortened. This is exactly a so-called overtaking opportunity in a corner that we can operate, don’t you think?
Sang Baichuan: I very much agree with your point of view. We have established a complete set of construction plans. If this construction plan can be truly implemented in the future and the deficiencies and gaps in the plan are filled, we can truly see the advantages of being a latecomer and Hainan can have a bright future.
I think we need to see many free w88 ports in the world. Hong Kong and Dubai are the main targets for our reference. Free w88 ports in other countries also have some specific experiences, so we must adapt to local conditions and refer to the practices of advanced free w88 ports. For example, there are so many policies implemented in Hainan that everyone is paying attention to. We as individuals are very concerned about one point. The number of duty-free goods on outlying islands has changed from 30,000 yuan to 100,000. Each person can buy 100,000 yuan of duty-free imported goods every year. This is a good policy. People will then ask who is running it. If we only stipulate that a few companies can operate imported goods, these few units can monopolize and they can completely raise prices. If many units are free to operate duty-free imported goods like Hong Kong, this is different. That’s why I say a high level of international competitiveness. We must break the reliance on administrative orders and tell them that only you can sell duty-free imported goods. If you can sell them but I can’t, then you can raise the price, but consumers will not benefit. Therefore, there is room for improvement in some similar plans. For example, if residents of the island can enjoy duty-free imported goods, what exactly does this imported goods include? If it’s just a few types, it doesn’t make sense. If it covers all daily necessities, it’s different. We need to make a list to know exactly what products are included. The tax-free consumer benefits can be enjoyed by residents of the island. So, can I enjoy it if I go on vacation for a month? If I can’t enjoy the quota that residents on the island can’t use up, can I ask him to bring goods? Then there will be room for exploiting loopholes. It is not appropriate for everyone to use their brains to exploit policy loopholes.
Host: I think of the “level of governance” and “governance system” mentioned by General Secretary Xi Jinping. In fact, the time to test us has arrived.
Sang Baichuan: How to layout and manage the designated battlefield will now test the governance and management level of our government. I think it is very important to follow the model of the free w88 port, design it according to advanced international standards, boldly break through the established rules and regulations, and form a good business environment within the scope of the rule of law.
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