A free trade pilot zone in Hainan was approved by the State Council in a circular released on Oct 16.

According to the circular, the pilot zone will cover the whole island of Hainan.

It also said the development and utilization of the land and sea area must strictly abide by national laws and regulations, as well as the integrated plan of Hainan province.

While intensively using the land and sea, uninhabited islands should be used in strict accordance with the Law of the People’s Republic of China on Protection of Islands, it said.

The scope of special customs oversight areas and the application of taxation policies in Hainan Free Trade Zone will remain unchanged.

The Hainan provincial government, the Ministry of Commerce and other related departments should carry out the organization and implementation of the overall plan, the circular added.