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An Exploration of the WTO Compliance of Some Preferential Policies in Hainan Free Trade Port

Co-author(s)
DONG Ruoning, GAO Tiantian (Supervisor)
Trade Topics
Free Trade

With the continuous advancement of China's reform and opening-up, the construction of the Hainan Free Trade Port has become a key project in China's economic development. Since 2018, the Chinese government has clarified Hainan's positioning, proposing to build it into a free trade port with Chinese characteristics. Establishing the Hainan Free Trade Port, which aligns with the world's highest standards of opening-up, is an important strategy for China to further expand opening-up. Through this opening-up platform, China will further integrate into the global economy and make greater contributions to the development of economic globalization. To this end, a series of supporting policies have been promulgated, offering various tax incentives for trade in goods at the Hainan Free Trade Port.
It should be emphasized that the Hainan Free Trade Port is a special economic zone within China's territory, subject to the jurisdiction of the Chinese government. Promoting free trade is a core objective of the Hainan Free Trade Port, and in its operation, it strictly abides by WTO rules. However, some tax incentive policies may face potential challenges in terms of consistency with WTO rules. This paper will focus on whether certain indirect tax preferential policies of the Hainan Free Trade Port are consistent with WTO regulations, and conduct analysis and interpretation against the backdrop of the governance of international economic and trade rules.