Abstract

China enacted the Hainan Free Trade Port Law (the "Hainan FTP Law") in June 2021. It is the first free trade port law in China, as well as the first law for a provincial area passed by National People's Congress and its Standing Committee. This note finds the enactment of the Hainan FTP Law a brand new legislative experimentation regarding the reform and opening-up in China, the experimental characters of which are revealed from the liberalization, devolution, and list approach applied during the lawmaking process of the Hainan FTP Law. This legislative experimentation will be of good value for future legislation accompanying the reform and opening-up.

I. Introduction

On June 10, 2021, the National People's Congress Standing Committee (NPCSC) passed the Hainan Free Trade Port Law (hereinafter "Hainan FTP Law"). The Hainan FTP Law elevates the policy of building the Hainan Free Trade Port (FTP) to a statute made by the national legislature. It is the first free trade port law in China, as well as the first law National People's Congress (NPC) or NPCSC has passed for a provincial area, if not including Hong Kong Special Administrative Region (SAR) or Macau SAR, though in the name of a free trade port. It marks a novel stage for "legislative experimentation" in China and China's reform and opening-up policy.

This note will address the experimental characters of the Hainan FTP Law. Part II introduces the idea of legislative experimentation. Part III discusses the experimental characters of the Hainan FTP Law, focusing on liberalization of trade and investment, devolution of powers, and the use of the "positive and negative list" approach. Part IV concludes the note.