People shop at a duty-free store in Haikou, capital of south China's Hainan Province, Nov. 10, 2020. (Xinhua/Guo Cheng)

China's southernmost Hainan Province will accelerate plans to open-up international shipping channels and lower tax rates as the island province moves to establish a 'zero-tariff' free trade port.

Hainan is moving ahead in creating a modern and comprehensive transport system underpinned by further opening up its shipping lines and air transport channels, and removing restrictions on overseas financing of ships and aircraft, according to the province's 14th Five-Year-Plan and 2035 vision for development. 

Hainan will build an international aviation hub, improve airport management systems, and attract established aviation logistics companies from both home and abroad, in addition to building an international aviation logistics center.

As the world's largest free trade port, if Hainan can establish an international aviation hub and aviation logistical center, it will boost Hainan's free trade port in becoming a major hub linking international and domestic commerce, Liang Haiming, Dean of the Belt and Road Institute at Hainan University, told the Global Times on Tuesday.

"If Hainan can make use of its policy and regional advantages through implementing a more open shipping and air transport strategy, fostering close connections to shipping and maritime industries it will not only contribute to the construction of Hainan free trade port but also make Hainan a fulcrum of the maritime Silk Road," Liang said.

On taxation policy, Hainan will implement the "zero tariff and low tax rate" policy, offering the zero-tariff for designated imported commodities and implement the "one negative three positive" lists focuses on high-tech industries in addition to ecological and environmental protection of the island, according to the five-year plan of the province.

The island is to make full use its tax-free shopping policy, growing the number of duty-free shops on the island, said the plan.

It is also to roll out preferential policies for individual income tax and business income tax, adjusting the list of high-end talents in short supply and attracting leading industries to the province based on strategic needs. 

According to the plan jointly issued by the Central Committee of the Communist Party of China (CPC) and the State Council in June, a free trade port system focusing on trade and investment liberalization and facilitation will be "basically established" in Hainan by 2025.