President Xi Jinping told a gathering celebrating the 30th anniversary of the founding of Hainan province and the Hainan Special Economic Zone in mid-April that the Communist Party of China Central Committee supports Hainan's development into a pilot free trade zone, gradually promoting the construction of a free trade port with Chinese characteristics and making a multistage effort to establish policy and an institutional system for free trade ports.

This is a major strategic plan for the development of Hainan, deployed by the CPC Central Committee to make new ground in pursuing opening-up on all fronts.

The past 30 years of development in Hainan has proved that the unswerving implementation of the principle of greater opening-up, which propels large-scale reform and development, has been practically explored in Hainan, leading to the accumulation of basic experiences and the gaining of historic achievements. Accelerating the process of Hainan’s greater opening-up, large-scale reform and development is a pragmatic move for Hainan to develop into a vivid example of socialism with Chinese characteristics for a new era.

Hainan has gained historic achievements in establishing a special economic zone over the past 30 years. Thirty years ago, following advocacy by Deng Xiaoping, the central government made the strategic decision to establish an SEZ in Hainan. It was hoped that opening-up would be preceded by this trial and a new road would be created. Since then, Hainan has changed from a semi-closed national defense outpost to a frontier for China’s reform and opening-up. In 2017, Hainan's GDP was 77.9 times that of 1987, and its per capita GDP was 52.4 times higher. Thirty years of practice has proved that the central government's decision to establish the Hainan SEZ was completely correct.

However, we must also realize that Hainan's potential is far from being fully released, and there is still much room for development. For example, the province's GDP was a 15th of Guangdong's in 1988 but only a 20th in 2017. To shoulder the important task that the central government has assigned to Hainan and to blaze a new trail for a vivid example of socialism with Chinese characteristics, it is necessary for Hainan to play a greater role in expanding opening-up and comprehensively deepening reforms.

Before the establishment of the province, Hainan was a defense outpost and its development was relatively backward, which meant Hainan had to follow a path of institutional innovation before it could develop rapidly. After Hainan established an SEZ, many of its opening-up reforms were at the forefront for the country.

From the beginning of the construction of an SEZ in the province, which explored the special customs area, the foreign firm development model in Yangpu and agricultural cooperation between Hainan and Taiwan in building an international tourism island, Hainan has unremittingly explored in-depth opening-up.

In terms of reforms, Hainan was the first Chinese province to establish a system of small government and big society. It took the lead in advancing price reforms, reforming the grain purchase and sales system, advancing corporate shareholding system reforms, promoting the reform of the social security system and establishing a new social security system framework. These reforms have played an important role in the development of Hainan and have served as a reference for the country.

The tremendous changes that have taken place in Hainan over the past 30 years have fundamentally benefited from reform and opening-up, without which it would not have built an SEZ and would not be today’s Hainan.

Xi, also general secretary of the Communist Party of China Central Committee, made it clear at the commemorative conference that efforts must be continuously made to develop the SEZ to a higher standard and that it should become an important window, pilot platform, explorer and practitioner of reform and opening-up.

In the new stage of development, the key to the promotion of greater opening-up of Hainan and the development of China’s largest SEZ is to explore the construction of a free trade port in Hainan. Greater opening-up and the establishment of a free trade port will be the practical culmination of Hainan’s unremitting exploration over the past 30 years, and also the expectation of the whole province. For me, it is the Hainan dream to which I have devoted 30 years.

After 30 years of hard work, Hainan has the preliminary conditions to establish a free trade port. Xi made a major strategic plan to establish a pilot free trade zone covering the entire island and a free trade port with Chinese characteristics. This is not only recognition of the tremendous economic and social development achieved by Hainan province and the Hainan SEZ in the past 30 years, but also a major historical opportunity for Hainan's new round of reform, opening-up and development. It not only brings great encouragement to Hainan, but also requires Hainan to take the initiative to assume the responsibility in the new era.

Establishing a free trade port within the 303,000-plus92035,400 square kilometers of Hainan Island means that China will establish a region with the largest area, the widest scope and the highest level of openness in the world. This is an important and unprecedented measure for China to actively expand its opening-up. It is not only of great significance for making new ground in pursuing opening-up on all fronts but will also have a positive impact in leading economic globalization.

Chi Fulin is the president of the China Institute for Reform and Development.This article was first published on Economic Information Daily on April 24, 2018.