China Intends to Establish Blockchain Powered Hainan as Competitor to Hong Kong
China has unveiled a master plan for transforming southern island province Hainan into a free trade zone.
A trade port platform will concentrate on paving way for free trade, cross-border capital flows, and investment in the whole island.
The master plan promotes government organization to utilize blockchain and other technologies to overhaul government operations. Authorities trust the latest technological innovations will assist in creating an elaborate, scientific, normalized and able free trade port government structure.
“We should give full play to the role of modern information technology, such as big data and blockchain, standardize government service standards through government service platforms, realize government process reengineering and government service, and strengthen orderly sharing of data and improve government service and governance level.”
China has stated it is devoted to implement blockchain technology in transactions involving intellectual property, certifications and other facets, and studying new models appropriate for the creation of free trade ports.
The plan to transform the entire Hainan Island into a trial free trade port area was officially disclosed by Chinese President Xi Jinping on a trip to the island in April 2018.
Earlier in 2019, China’s richest entrepreneur Jack Ma, while speaking at the Business Leaders’ Advisory Council, stated that Hainan must focus on overtaking Hong Kong by transforming into a crucial player in digital age aided global trade.
The council was established to provide suggestions to the government to expedite opening up of Hainan and the creation of the Hainan Pilot Free Trade Zone.
The Hainan free trade zone will be “basically established” by 2025 and transform into a “more mature” port by 2035, according to the strategy jointly revealed by the State Council and Central Committee of the Communist Party of China.
A specific fund of roughly $142 million was created to fund blockchain firms in Hainan at the end of 2019.