(Yicai Global) Oct. 17 -- China has revealed plans on transforming the southern island province of Hainan into a free trade zone, including relaxed foreign ownership restrictions in sectors such as new energy vehicles and aircraft.

The proposal will turn Hainan into an important gateway facing the Pacific and Indian oceans, Commerce Vice Minister Wang Shouwen and Hainan Vice Governor Shen Danyang said at a press conference. 

Hainan FTZ will substantially ease market access for overseas investors, expand financial openness, and strengthen international cooperation on the Belt and Road initiative, according to the proposal released today. President Xi Jinping's flagship Belt and Road project aims to increase economic and trade ties between countries along the former Silk Road.

The Communist Party and State Council, the country's cabinet, announced in April the intention to create an FTZ in Hainan by 2020 and a free trade port there by 2025.

Today's plans mention key sectors such as agriculture, high tech, medical care, education, tourism, telecoms, the internet, culture, finance, aviation, marine economy, and NEV manufacturing. Foreign ownership limits will be lifted in NEV production, shipbuilding, maritime logistics, aircraft manufacturing and maintenance, as well as cultivation of new varieties of vegetables and seeds.

Personal insurance companies will have their foreign investor threshold raised to 51 percent, while private internet network firms will be allowed to own as much as half. Oil exploration firms seeking to cooperate with domestic players will need central government approval.

Engineers and architects licensed to work in China will also be permitted to set up offices in the Hainan free trade zone.

Editor: Emmi Laine