The southern Chinese island province of Hainan has been a popular tourist destination for years, but the government feels it has much more to offer by way of a free trade port. CGTN reporter Ma Ke reveals details on China's plan to turn Hainan into the next economic powerhouse.

It's a free trade port for China, and for the world. Officials from southern China's Hainan province unveiled outlines for building the island into a free trade port. Officials say lower tariffs and taxes, along with fewer restrictions will underscore messages for future policies on foreign trade.

LIU CIGUI Secretary, Hainan Provincial Committee of CPC "We'll implement key policies such as preferential treatment for business and personal income tax, upgraded off-shore duty-free shopping policies, and zero tariffs on imported goods. We will significantly widen market access, improve the free trade account system, facilitate cross-border trade, investment and capital flow."

Hainan has a traditional advantage in the tourism and service industries, which China plans to enlarge by encouraging foreign investment in these sectors.

SHEN XIAOMING Governor, Hainan Province "For foreign investors we will apply the pre-establishment national treatment with Hainan free trade port's exclusive negative list. For companies that fall into the tourism, services and high-tech sectors, we will exempt the income tax for their overseas direct investment income."

Hainan was one of China's earliest ports to open up after the establishment of the PRC in 1949. Its experience in international trade, and adjacency to the country's Guangzhou-Hong Kong- Macao Greater Bay Area and ASEAN countries have people wondering: Will it pose a threat to Hong Kong's position as a financial center and shopping mecca?

LIN NIANXIU Vice Chairman, National Development and Reform Commission "Hainan will give priority to trade and investment. We will focus on developing tourism, modern services and high-tech industries. So that the Free Trade Port can have its unique strengths, and we can inject vitality into the development of global free trade ports. In this sense, the positioning of Hainan and Hong Kong is different. Their priority areas are different as well. So they're complementary rather than competitive. Hainan will not pose a severe challenge or threat to Hong Kong."

Lin laid out two phases for Hainan to fulfill these commitments. By 2025, the region will focus on liberalization and facilitation of trade, investment, and an island-wide special customs supervision regime. By 2035, they will focus on relevant institutional arrangements to develop a free trade port at a high-level with unimpeded flow of cross-border capital, personnel, goods and data.