Recently, the Central Committee of the Communist Party of China ("CPC") and the State Council have issued the Guiding Opinions on Supporting Hainan in Fully Deepening Reform and Opening-up (the "Opinions").
The Opinions call for actively promoting the commercial exploitation of natural gas hydrates and seabed minerals in the South China Sea, inspiring private businesses to participate in developing resources in the South China Sea, and accelerating the cultivation of emerging industries, such as the marine organisms, desalination and integrated utilization of sea water, renewable marine energy resources, and research, development and application of marine engineering equipment. The Opinions expressly state that efforts will be made to back the legal establishment of Hainan-based exchanges in respect of international energy, shipping, bulk commodity, property rights, equities, and carbon emission permits, and support Hainan province in carrying out comprehensive energy reform with focus on the institutional reform for power and natural gas. Moreover, the Opinions state that the China (Hainan) Pilot Free Trade Zone will be established in consideration of local characteristics of Hainan, to implement what is being tried in existing pilot free trade zones across the entire Hainan island. Actions will be taken, depending on needs of the national development, to gradually explore and steadily advance Hainan's development of a free trade port, and set up the framework of policies for the free trade port step by step and in phases.