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Download Article Advances in Economics, Business and Management Research, volume 85 2nd International Conference on Economy, Management and Entrepreneurship (ICOEME 2019) Research on the Problem-solving Path of the Open Development of Modern Service Industry in Hainan Free Trade Area Na Wang Dalian Art College Dalian, China Abstract—On the afternoon of April 13, Xi Jinping, covering the whole island of Hainan. As the youngest free General Secretary of the Central Committee of the Communist trade zone in China and the only free trade port experimental Party of China and President of the State, solemnly declared at field in China, various departments issued support rules from the congress celebrating the 30th anniversary of the April to December 2018, which were even called "policy establishment of the province-run special economic zone in dividend intensive bombing" by the relevant media, giving Hainan province that the Central Committee of the Hainan province far more special policies and convenient Communist Party of China had decided to support the conditions than the general free trade zone. construction of a free trade pilot zone in Hainan province. As the largest free trade area in China, Hainan province will become an important opening door for China to the Pacific II. VIGOROUSLY DEVELOPING MODERN SERVICE and Indian Oceans. Since then, the state and Hainan Province INDUSTRY IS THE KEY POINT IN THE CHARACTERISTIC have issued a number of policy documents on the strategic DEVELOPMENT STRATEGY OF HAINAN FREE TRADE AREA positioning of the development of Hainan free trade zone, and accelerated the establishment of an open ecological service- A. Innate Location Advantages Provide Basic Resources oriented industrial system as one of the core development for the Development of Modern Service Industry contents. However, how to solve the problems that Hainan free trade zone is facing in the open development of modern service, As China's 12th free trade zone, China (Hainan) free such as fierce regional market competition, weak high-tech trade zone has a total area of 354,000 square kilometers, foundation, unclear capital depression, inadequate reserve of which is 27 times the total area of 11 other free trade zones middle and high-end talents and weak international in China, 32 times that of Hong Kong, 49 times that of competitiveness of independent brands, will become the first Singapore, and 9 times that of Dubai. From the perspective problem to be solved for this youngest free trade zone in China. of industrial economics, land is the first element of urban This paper will combine the successful experience or mode of economic development. The unified layout, unified planning, domestic and foreign free trade zones in the open development and unified management of the whole island will form a of modern service industry, and put forward some ideas to large economic system of the whole island, which can not solve the problems according to the regional characteristics of only guarantee the strengthening of the source power within Hainan free trade zone. the system, but also provide excellent basic conditions for the production-oriented service industry in the modern Keywords—Hainan free trade zone; modern service industry; service industry. Hainan province is characterized by its open development; problem-solving geographical location as an outlying island with geographical advantages. Hainan province has many natural harbors in I. INTRODUCTION terms of port resources: Haikou Port, Qinglan Port and On April 13, 2018, Xi Jinping solemnly declared at the Mulan Port in the north; Sanya Port and International Cruise congress celebrating the 30th anniversary of the Terminal in the south; Longwan Port in the east; Yangpu establishment of a province-run special economic zone in Port, Baimajing Port and Basuo Port in the west and so on. Hainan province that the Central Committee of the Chen Bo, the executive director of the research center for Communist Party of China had decided to support the free trade zone of Huazhong University of Science and construction of a free trade pilot zone in Hainan province. Technology, said that the opening of service industry was a On April 14, 2018, the Central Committee of the Communist common task and challenge faced by 11 free trade zones Party of China and the State Council issued the "Guiding before Hainan free trade zone. The opening process of such Opinions on Supporting Hainan's Comprehensive Deepening projects as education, health care and cultural tourism was of Reform and Opening up" (No. 12, 2018). It was clear that relatively slow. "Hainan's greater characteristics lie in the China (Hainan) Free Trade Pilot Area should be constructed modern service industry. If the modern service industry can with the existing pilot content of free trade pilot area as the develop in Hainan province, it will be great. " main body and the characteristics of Hainan province, Copyright © 2019, the Authors. Published by Atlantis Press. This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/). 217 Advances in Economics, Business and Management Research, volume 85 B. Over the Years, the Industrial Development Has In 2018, the added value of the provincial service Provided the Industrial Foundation Guarantee for the industry was 273.615 billion yuan, an increase of 6.8% over Modern Service Industry the previous year, a growth rate of 1.0 percentage points With the transformation of China's economy and higher than the overall economy, and the contribution rate to consumption, Hainan's high-tech and service trade has begun economic growth was 66.9%, which is an important force to highlight the late-mover advantages. Shen Xiaoming, the driving the economic growth of the province. From January governor of Hainan Province, pointed out in the Hainan to November, the operating income of services above the Government Work Report in 2018 that in the past five years, scale of the province reached 108.259 billion yuan, an Hainan had always adhered to the construction of a modern increase of 18.0% over the same period last year. Among service industry-led industrial system, focusing on the them, the revenue of strategic emerging service industry is development of 12 services-based industries, with the service increased by 16.1%. In terms of business income of major industry contributing 79.5% to economic growth. However, industries, transportation, warehousing and postal industry it is necessary to clearly recognize that there is still a certain grew by 17.1%, information transmission, software and gap between the economic basis of Hainan free trade zone information technology services by 13.0%, leasing and and other free trade zones, and there is no support from business services by 18.2%, and scientific research and technology services by 75.9%. From the above data, it can leading enterprises in manufacturing and high-tech industries, (see "Fig. 1"). This decides that Hainan's industrial see that the service industry in Hainan free trade zone has characteristics as a free trade pilot area and a free trade port maintained a relatively rapid growth, while the emerging will be very obvious: the traditional advantages of tropical industries have developed rapidly. agriculture and marine fisheries based on its own foundation, and the future advantages of expanding to the direction of modern service industry. Primary industry Secondary industry Tertiary industry Fig. 1. The composition of three industries in Hainan Province in 2018. a. Data Source: the database of Business Industry Research Institute in China. Zhejiang, but to take advantage of "the Belt and Road III. ANALYSIS ON KEY PROBLEMS IN THE OPEN Initiative" and Hainan's position in the South China Sea and DEVELOPMENT OF MODERN SERVICE INDUSTRY IN HAINAN facing Southeast Asia to participate in international FREE TRADE ZONE competition, to challenge Singapore and even to win the market in South Asia and Southeast Asia. A. Accurate Positioning and Differentiated Development of Industries Combining with the orientation of Hainan Free Trade Area and the development strategy of modern service In April 2018, the Central Committee of the Communist industry, it can clearly see that industrial Internet has become Party of China and the State Council issued the "Guiding an important starting point for the layout of modern service Opinions on Supporting Hainan's Comprehensive Deepening industry in Hainan free trade port. Using the advantages of Reform and Opening up", which clearly pointed out that it industrial internet, the period lies in realizing the deep should speed up the establishment of an open ecological integration of traditional industry and Internet relying on big service-oriented industrial system, further improve the data, promoting Hainan's industrial economy to break away socialist market economic system and continuously enhance from weakness to reality, and realizing transformation and Hainan's economic innovation and competitiveness. It is upgrading. At the same time, people can learn from the basic necessary to support the establishment of international experience of commodity trading in Hong Kong, Singapore energy, shipping, commodities, property rights, equity and and Dubai, which are the three major free trade ports in the carbon emissions trading sites in Hainan province in world, pay attention to transaction costs, create a convenient accordance with the law and regulations. This guidance business environment and promote the
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