What does the Government Work Report mean for Hainan?

By Lara Netherlands / hicn.cn / Updated: 19:41,09-March-2022

The Two Sessions – the annual sessions of China’s national legislature and the top political advisory body -are on and people are busy discussing the Government Work Report for 2022, tabled by Premier Li Keqiang.

Last year provided the foundation for the report as it was the first year of the 14th Five-Year Plan, extending from 2021 to 2025.

There were several achievements: a very high GDP growth rate of 8.1%, despite the pandemic. Per-capita disposable income increased by 8.1% in real terms, and over 12 million new urban jobs were created. Besides, people and businesses were given relief through new tax refunds and reductions, which amounted to more than 1 trillion yuan – or over 158 billion USD.

Now let’s look at the goals in 2022:

The targets outlined in the Government Work Report include:

A GDP growth rate of around 5.5%

11 million new urban jobs

More tax refunds and reductions worth 2.5 trillion yuan, which is more than 395 billion USD.

But is China’s GDP slowing down? According to the World Bank, the entire world’s growth is expected to decelerate from 5.5% in 2021 to 4.1% this year. However, China can sustain growth by rebalancing its economy.

The report also pledges a higher standard of opening up and promoting stable growth of foreign investment and trade.

This is where Hainan comes in. Hainan made a large contribution to this goal last year, taking special measures to liberalize market access, facilitate trade and improve financial support.

The Hainan Free Trade Port is mentioned twice in the report. Li Keqiang said solid progress will be made in the construction of the free trade port.

Last year, Hainan promulgated its first 15 free trade port legislative measures and implemented more than 150 policies. They include core policies that are unique to Hainan such as the two “15% income tax” policies and three "zero tariff" policies. These are already beginning to reap results.

The measures taken by Hainan contribute to the Central Government’s plans to deepen reform to strengthen market vitality and internal momentum for development.

We will continue to see Hainan at the forefront of China’s opening up, providing more opportunities for foreign investors and enterprises to grow in China.



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