Hu Weidong: "minimalist and extremely low" is the direction of Hainan's tax system reform
May 11th, 2022

2019 is a key year for Hainan to speed up the construction of free trade zone (port). Sina Hainan launched a series of interviews on “new mission · new development - Hainan is sailing”. With the two themes of “dialogue free trade zone” and “seven day talk industry dialogue”, it comprehensively cuts in from the perspectives of economy, life, science and technology, environment, medical treatment and education, and focuses on the fruitful achievements of Hainan since the construction of free trade zone (port)

Hu Weidong, the current president of Hainan Management Modernization Research Association, President of Hainan Nanhai economic and Technological Research Institute, senior economist and well-known management expert, talks about the construction of Hainan free trade zone (port).

Talk about feelings

“Why stay in Hainan? Some people say that smart people leave and stupid people stay in Hainan. I think ‘stupid’ is based on an expectation of Hainan’s future development and Hainan’s position in the country.”

“Last year was the 30th year since the founding of Hainan Province, and I have been in Hainan for 30 years. Of course, there are many different comments and evaluations on Hainan. Objectively speaking, the development of Hainan is unsatisfactory, which we can’t get around, because the expected goals of our two major changes have not been fulfilled,” Hu Weidong said when talking about our feelings for Hainan, “According to the requirements of the government at that time, the goal of Hainan’s construction in 1988 was to reach the level of China’s moderately developed areas, but now it has not been achieved. Second, we also put forward a goal for the construction of international tourism island. Objectively speaking, there is still a gap to build a tourism demonstration area by 2020. So why do you stay here? Why do you stick here? That is, we have our own feelings for this hot land, and people with feelings should We should not care about short-term profits, short-term gains and short-term losses. “

“Why stay in Hainan? Some people say that smart people leave and stupid people stay in Hainan. I think ‘stupid’ is based on an expectation of Hainan’s future development and Hainan’s position in the country.” Hu Weidong said that at a recent academic seminar in Hubei, some scholars constantly raised some very serious questions, saying why the state gives so many good policies and so many favorable policies to Hainan. What are the advantages of Hainan? At that time, I replied as follows: “In the process of modernization, a country cannot bypass the ocean. China’s per capita marine area is the lowest in the world. At present, China’s marine area is more than 3 million square kilometers, and the marine land area of the South China Sea under the jurisdiction of Hainan is more than 2.2 million square kilometers. This is a great area and a great resource. This is what China must obtain in the process of modernization, A resource that must be developed and fully utilized is a major advantage of Hainan. “

“The second is tropical resources. Most of our country is located in temperate and cold zones, and only Hainan is located in the tropical region. The tropical region can not bypass the richness of the country’s geographical resources. Therefore, these two points constitute Hainan’s special position in the whole of China, so this is the basis for Hainan to carry out all-round reform and opening-up pilot in the future. Therefore, we must stick to this place , it is possible that a stage in its development will not do our best, but we stick to it, contribute to it, and believe that it will do well in the future. “

Talk about change

“It’s very urgent to find the right direction. We must not find the right direction.”

Talking about the changes in Hainan since the establishment of the free trade zone (port), Hu Weidong said, “I think the biggest changes are in two aspects. The first point is to inform you of the future development goals of Hainan at home and abroad. It is very important here, which makes our future goals of Hainan clearer. The development of a region and the development of a regional economy determine the results. It is a great thing to inform the world of the development goals. The second point is that we have a lot of advanced experience of the free trade zone that we can learn from, and at the same time Hainan is also constantly exploring and designing the system of a regional free trade zone. “

“Hainan free trade zone is different from the 11 domestic free trade zones. We have two differences. First, we are global. No free trade zone in China is global. I often say that the domestic free trade zone belongs to the park free trade zone, and we should implement certain free trade zone policies in a specific scope within any province. Our Hainan free trade zone is global, and there is no global free trade zone in China. Our policy body The Department must be redesigned. It takes time and can’t be in a hurry. “ Hu Weidong said, “Second, the direction of Hainan free trade zone is different from that of domestic free trade zone. The direction of our free trade zone is very clear. It is to build a free trade port. The policy system of the free trade port is the upgrading of the policy system of the free trade zone. According to the central government, it is the most open policy system in the world. It is amazing. So we need to explore and design the system, which takes time.”

“I think if we make the foundation solid in the early stage, the future development will be very good. Hainan can’t be in a hurry. We must make the foundation solid and find the right direction, which is very important.”

On service trade

“In the field of service trade in Hainan, tourism is the core and the tax system is the highlight.”

“On the possibility of Hainan’s future development, I once said that we are in the free trade zone (port) In the early stage of construction, it will enter a relatively difficult time. One of the main reasons for the difficulties is the deep transformation of the industry. For example, we used to rely on real estate for a long time. Now we have stopped real estate and can no longer rely on it to contribute to our GDP and feed the people of Hainan. Then we need to find a more effective industry. This transformation is very difficult. The cultivation of an independent industry takes 3-5 years. The formation of a new industry also requires 3-5 years of practice, which is a difficult practice. “ Hu Weidong said.

“Then the alternative industry that will appear in this difficult time, I think it is the tourism industry. The tourism industry is an inclusive, comprehensive and complex industrial system. As long as you rearrange the tourism elements in the existing industries to meet the needs of consumers, you can become a new industrial bright spot.” Hu Weidong said, “Hainan’s tourism industry has a very good foundation. One is that we have conducted exploration for nearly 30 years and accumulated experience in tourism management and tourism

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