Liao Hongyu: having a stronger aviation maintenance industry in Hainan

The government work report this year proposed to give the pilot free trade zone greater autonomy in reform and innovation, adding a new area of the Shanghai pilot free trade zone, promoting the construction of the Hainan pilot free trade zone, and exploring the construction of a free trade port with Chinese characteristics.

"Advancing the pilot free trade zone and the construction of a free trade port with Chinese characteristics cannot be separated from the support of the industry," said Liao Hongyu, deputy of the National People's Congress, chairman of the board of supervisors of Hainan Airport Group and Haikou Meilan International Airport. He indicated that good policies required good industries and market entity. "Good policies cannot be implemented without industries,” he said.

Liao Hongyu suggested that Hainan could regard aviation maintenance as a breakthrough for developing maintenance industry. He believed that as a modern high-end service industry, the aviation maintenance industry has the characteristics of high technology content and high added value. It is predicted that the output value of global aviation maintenance will be 81.9 billion US dollars in 2019 and reach 116 billion US dollars in 2029.

"At present, the annual aviation production industry in Hainan has an annual output value of about 3.5 billion yuan, with an average annual growth rate of about 12%, and the number of employees is about 3,000." Liao Hongyu said that with the development of pilot free trade zone and free trade port with Chinese characteristics, the development of service trade industry had new opportunities, and the aviation maintenance industry would become a new growth point for Hainan's economic development.

Liao Hongyu suggested that on the basis of the existing aviation maintenance industry in Hainan, it would further expand the global aviation maintenance business, building a global aviation maintenance industrial leading position, and enhancing the development level of Hainan free trade zone and free trade port service trade.

Liao Hongyu also said that aviation maintenance is a high-threshold, high-input, high-tech industry that requires policy guidance. He suggested that it was necessary to innovate the customs’ supervision mode and implement bonded supervision for aviation maintenance industry that outside the special customs supervision area. Overseas equipment, tools, materials do not need to go through customs declaration, taxation and other formalities when entering the special customs supervision area. After completion of maintenance, they would be directly exported from the special supervision area to the outside, which can greatly improve the efficiency.

Responsible editor: 石一涵
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