Chapter VI

Industrial Development and Talent Support 

Article 38 The state supports the Hainan Free Trade Port in establishing an open, eco-friendly, and service-oriented industrial system and in actively developing important industries such as tourism and other modern service industries, high-tech industries, and efficient tropical agriculture. 

Article 39 The Hainan Free Trade Port shall build itself into an international tourism and consumption center, deeply integrate tourism with culture, sports, healthcare, elderly care, and other industries, to foster new forms and models of tourism. 

Article 40 The Hainan Free Trade Port shall deepen the opening up of its modern service sector to other parts of China and to the overseas, build itself into an international shipping hub, promote the integrated development of ports, industries and cities, improve the marine service infrastructure, and build an internationally competitive marine service system.

High-level foreign universities and vocational schools may set up schools of science, engineering, agriculture and medical science in the Hainan Free Trade Port. 

Article 41 The state supports the Hainan Free Trade Port in the development of major scientific research infrastructure and programs, and establishes a management system for scientific and technological innovations and international scientific and technological cooperation mechanisms, which are in line with the laws of scientific research. 

Article 42 A data flow management system shall be established in the Hainan Free Trade Port in accordance with the law to ensure the safe, orderly, free and convenient flow of data, to protect the data-related rights and interests of individuals and organizations in accordance with the law, to open up communication resources and communication services in an orderly manner, to expand opening up in the field of data, and to promote the development of the data-based digital economy.

The state supports the Hainan Free Trade Port in exploring institutional arrangements for regional cross-border data flow.

Article 43 The Hainan Free Trade Port shall adopt a highly free, convenient and open transport policy, as well as a more open shipping system and ship management system. The Yangpu China ship registry port shall be built in the Hainan Free Trade Port where a special ship registration system shall be implemented. Airspace control and air route restrictions shall be relaxed in the Hainan Free Trade Port and the allocation of traffic rights resources shall be optimized to improve transportation facilitation and services. 

Article 44 The Hainan Free Trade Port shall deepen the reform of its talent development system and mechanisms, creating new support mechanisms for personnel training, and establishing scientific and reasonable mechanisms introducing, identifying and employing talents, as well as ensuring their benefits and welfare. 

Article 45 An efficient and convenient exit and entry administration system shall be established in the Hainan Free Trade Port by phasing in a visa-free entry policy in a wider range, extending the duration of visa-free stay, optimizing exit and entry inspection, and facilitating exit and entry customs clearance. 

Article 46 More open policies for talents and their temporary stay and residence shall be adopted in the Hainan Free Trade Port, including a more relaxed policy for temporary exit and entry, implementation of a policy for facilitated work visa application, application of the negative list administration system for foreigners' work permits, and further improvement of the stay and residence system. 

Article 47 The Hainan Free Trade Port shall relax restrictions on overseas personnel taking professional qualification examinations, and implement a one-way accreditation list system for overseas professional credentials. 

Chapter VII

Comprehensive Measures 

Article 48 The State Council may, according to the development needs of the Hainan Free Trade Port, delegate its powers to examine and approve the conversion of agricultural land into land used for construction purposes and the expropriation of land to the people's government of Hainan province, as well as the power to examine and approve the adjustment to the layout of cultivated land, permanent basic farmland, forest land, and land for construction purposes in the entire province under the conditions prescribed by the state and under the premise of never breaking the important indicators specified in spacial planning of Hainan Province, such as the redlines for ecological protection, the area of permanent basic farmland, the amount of cultivated land and forest land, the total amount of land for construction purposes, and ensuring no degradation of the quality of the said land.

The Hainan Free Trade Port shall push forward integrated and coordinated development of urban areas, rural areas and reclamation areas, introduce a new model of land for construction purposes in small towns, and promote the capitalization of reclaimed agricultural land.

Use of the sea area in the Hainan Free Trade Port for major national project development shall be guaranteed in accordance with the law. 

Article 49 In the course of the development of the Hainan Free Trade Port, cultivated land shall be effectively protected, land administration shall be strengthened, and an intensive and economical land use system and the evaluation standards thereof as well as a system for using the stock land for construction purposes shall be established. Idle land shall be made full use of. Where the right to use a particular lot of land is obtained through transfer and the land is under development, if the project has not been completed over one year after the completion date agreed upon in the assignment contract, an idle land fee shall be collected each year at a certain proportion of the present value of the land assigned before the completion of the project. The specific measures thereof shall be formulated by Hainan provincial authorities. 

Article 50 The Hainan Free Trade Port shall maintain that the financial sector serves the real economy. It shall promote financial reform and innovation, and take the lead in implementing policies to open up the financial sector. 

Article 51 A cross-border capital flow management system shall be established in the Hainan Free Trade Port that adapts to the needs of high-level trade and investment liberalization and facilitation, capital accounts shall be opened up by stages, full currency convertibility for foreign debts of non-financial companies shall be implemented step by step, and facilitation of cross-border trade settlement shall be promoted, for the furtherance of the free and convenient flow of funds between the Hainan Free Trade Port and the overseas in an orderly manner. 

Article 52 The approved financial institutions in the Hainan Free Trade Port may conduct offshore financial business through designated accounts or in specific areas. 

Article 53 The Hainan Free Trade Port shall strengthen the development and application of the social credit system and establish mechanisms that encourage honesty and punish dishonesty. 

Article 54 The state supports the exploration of judicial reform compatible with the Hainan Free Trade Port. In the Hainan Free Trade Port, multiple commercial dispute resolution mechanisms shall be established, a centralized trial mechanism for international commercial disputes shall be improved, and resolution of disputes through arbitration, mediation, and other non-litigation means shall be encouraged. 

Article 55 A risk alert, prevention and control system shall be established in the Hainan Free Trade Port to prevent and eliminate major risks.

The customs shall be responsible for routine regulation at the ports and other customs surveillance zones, preventing and combating smuggling and exercising follow-up supervision in accordance with the law. The coast guards shall be responsible for investigating and dealing with smuggling at sea. The people's government of Hainan Province shall be responsible for the overall anti-smuggling work within the province, strengthening the control over non-customs areas, and establishing a joint mechanism against smuggling with other regions. People, goods, articles and means of transport that move between areas outside the borders of China's mainland and the Hainan Free Trade Port and between the Hainan Free Trade Port and China's mainland shall all enter or exit from the port.

The security review system for foreign investment shall be implemented in the Hainan Free Trade Port in accordance with the law, and security reviews shall be conducted on foreign investments that affect or may affect China's national security.

Order and security in the areas of finance, networks and data, movement of people and public health in the Hainan Free Trade Port shall be maintained through the establishment of a sound financial risk prevention and control system, the implementation of a hierarchical cybersecurity protection system, and the establishment of a risk prevention and control system for the movement of people, a monitoring and alert mechanism for infectious diseases and public health emergencies, and a mechanism for prevention, control, and treatment in case of an outbreak. 

Chapter VIII

Supplementary Provisions 

Article 56 After this Law goes into effect and before island-wide special customs operations are implemented in the Hainan Free Trade Port, the State Council and its relevant departments and the Hainan provincial authorities may formulate specific transitional measures with regard to the matters provided for herein to advance the development of the Hainan Free Trade Port in accordance with the principles prescribed in this Law and in accordance with their respective duties and responsibilities. 

Article 57 This Law shall go into effect as of the date of its promulgation.