Q:At a celebration of the 30th anniversary of Hainan becoming a special economic zone，President Xi Jinping announced the strategy of establishing the island as a free trade port. The US has been pushing China to open its economy at an accelerated pace. Was this statement by the president a response to US pressure? Is it a signal that China is worried about a possible trade war with the US?

A:The establishment of free trade ports has already been stated in past government reports. What we have here is just a statement of the location. China has been actively working on opening up its economy in accordance with established guidelines，paths，and schedules. Hainan is a provincial level administrative region. Thirty years ago it was added to the list of special economic zones，joining Shenzhen，Zhuhai，Shantou，and Xiamen，which had received that designation almost a decade earlier. These decisions were based on the advantages of all of these areas.

Q:What is the management model for the free trade port of Hainan? How much of an opening will we see for the financial sector?

A:The free trade port draws on an internationally accepted operating model. It is designed to give greater freedom to market players，free up their trading methods，and expand the permitted scope of business. Full decentralization at the level of national ministries and commissions，and the gradual implementation of the provincial government’s policies will help promote the opening up in a steady and gradual manner，instead of in a chaotic opening all at once. In the financial sector，pre-access national treatment and negative lists are policies that can be anticipated.