Chinese authorities have released a master plan for turning southern island province Hainan into a free trade port. Initially, the pilot program will select two banks to carry out business through the blockchain-powered platform. According to report the first export account was traded successfully through the system.
The master plan encourages government institutions to use blockchain and other technologies to reform government function.
On June 1 Xinhua News reported that the trade port system will focus on facilitating free trade, investment and cross-border capital flows in the whole island of Hainan.
The authorities hopes that the modern technologies will help in building a comprehensive, scientific, standardized and effective free trade port governance system:
“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 is committed to strengthening the application of blockchain technology in intellectual property transactions, certifications and other aspects, and exploring new models suitable for the development of free trade ports.
The decision to develop the entire island of Hainan into a pilot free trade zone was announced by Chinese President Xi Jinping during a visit to the island in April 2018. The Hainan Provincial Branch of the Foreign Exchange Bureau will seek to strengthen the use of blockchain in cross-border payments services based on the results of the pilot program.
The Hainan free trade port will be “basically established” by 2025 and become “more mature” by 2035, says the plan jointly issued by the Central Committee of the Communist Party of China and the State Council.