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I've been following this initiative and it'll be interesting to see the result. It's worth noting that Hainan as a free trade hub has already failed once. It was the only one of the special economic zones that didn't boom up and become a major center of commerce. But this has definitely made it a unique region instead of one of many identical ones.
I think the law is less of an issue than you might think. Rule of law has increased a lot in China in recent years and even if the People's courts aren't as good as the ones wearing wings they are becoming good enough that a lot of companies are willing to accept them over the guys in wigs for the convenience of doing business directly in Shanghai or Shenzhen. The mainland is also looking a lot more stable these days, the idea of protesters burning down the Shanghai legislative building is unthinkable. Where Hong Kong really shines is finance and I don't expect that to change the Hong Kong financial system is much more western and much more integrated to global financial markets then China proper and I think the Party sees them as a useful buffer this way.
As for human capital they have done some reforms on that front as well. Many countries now have visa free travel specifically for Hainan. As well there are some new residence permits carveouts in a way that is normally not allowed in China and even quasi-immigration for overseas Chinese and talented foreigners. I'm being vague because the proposals are not yet finalized (as far as I know) but basically for many many people Hainan will be the only place in China proper they can live or do business which should drive a fair bit of talent there. China has also built up Shenzhen from a fishing village no one would want to move to, into a very desirable city so there is precedent. I also thing Chinese might just overestimate the desirability of Hainan since Chinese love it. My bosses and colleagues here are always surprised I don't want to go. it has the best beaches in China. yes, but those are still pretty mediocre but for them it's like Hawaii.
No that's what the SEZ's were this is something new.
Thank you for the information! I wasn't aware that Hainan had an SEZ before.
Huh. It must have fallen out at some point in editing, but I did have a like going something like "Previous SEZs have allergen-tested the mainland, making the risk of rejection moderate"
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