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Invest in Shandong

chinadaily.com.cn Updated: 2019-03-22

Overview

Shandong province lies on the east coast of China and at the lower reaches of the Yellow River, consisting of 17 prefecture-level cities.  It is about 700 kilometers long from east to west and 430 kilometers wide from south to north, with a total land area of 155,800 square kilometers and a total ocean area of 159,600 square kilometers.

Shandong has a temperate climate, lying in the transition between the humid subtropical  and humid continental zones with four distinct seasons. Summers are hot and rainy, while winters are cold and dry. Average temperatures are - 5 to 1 degree C in January and 24 to 28 C in July.

Shandong has been inhabited since ancient times and has an abundance of nature. It has an eastern coastline, beautiful lakes in the south of the province, immense plains in the west, the grand Yellow River flowing through the north, and the magnificent and historic Mount Tai in its center. It is the major producer and supplier of petroleum, coal and nonferrous metal, having the most gold reserves and output as well as abundant sea salt and diversified coastal birds.

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[Photo/VCG]

East China's Shandong province has a vital impact on the country's economic growth. The ratio of the primary to secondary to tertiary industry in Shandong was 6.5: 44: 49.5 in 2018, signifying how the tertiary industry overtook the secondary for the first time. In 2018, its GDP reached 7.65 trillion yuan ($1.09 trillion), up 6.4 percent. Per capita disposable income of urban dwellers amounted up to 39,549 yuan, with the counterpart of country dwellers reaching 16,297 yuan. 

Pillar Industries

Shandong has cultivated many pillar industries including modern agriculture, wine industry, high-end manufacturing, marine industry and tourism industry.

Agriculture Industry

Renowned as “China's most outstanding agricultural province”, Shandong is a major agricultural producer in China, providing abundant and high-quality vegetables, fruits, meat and aquatic products to people in China and abroad. Shandong province has been selected as the first demonstration province for export of high quality agricultural products. 

Shandong’s output of agricultural products has been the highest in the country for numerous years. In 2017,  it was worth 487.67 billion yuan ($ 76.67 billion), to the Shandong economy, an increase of 3.5 percent from 2016 Shandong tops the tables for total output of vegetables (106.18 million tons), fruit (32.96 million tons), and meat, egg and milk (14.88 million tons) nationwide. The total cotton yield (345,000 tons) ranks second and that of grain (47.23 million tons) and oil (3.28 million tons) take the third place.

In agricultural marketing, Shandong will push ahead the connection of new agricultural management enterprises with a comprehensive agricultural service platform. By 2022, the province expects to have built the platform into a renowned national agricultural product marketing platform. In the meantime it will support agricultural products marketing groups to set up 100 off-line stores and 1,000 direct selling offices in first and second tier cities. 

Wine Industry

Due to its loose, well-ventilated soil and rich minerals that enable the full development of the root systems, the production of wine is the second largest industry in Shandong, only second to agriculture. To date, there have been more than 140 wineries in the region, mainly distributed in the Nanwang Grape Valley and along the Yan Peng Sightseeing Highway. The region produced more than 40 percent of China's grape wine production. Geographically, the southern hills average an elevation of 200 meters, while the coastalareas remain relatively flat.

Manufacturing Industry

Manufacturing contributes enormously to Shandong’s economic growth, comprising a group of renowned brands like Haier, Hisense, Inspur, Weichai Power, Tsingtao Beer and Changyu. Riding on the spring breeze of the new and old kinetic energy conversion, Shandong’s economy is filled with vigor and vitality. 

Tourism Industry

Blessed with a wealthy history, the coastal province in East China has played a major role in Chinese civilization. Therefore, the province offers those with love for culture and history with numerous things to see and do. The first half of 2018 saw a strong increase in Shandong’s tourism market, with a total of 370 million tourists from China and abroad visiting the province, a year-on-year increase of 9.2 percent. The total consumption volume made by those visitors reached 436.09 billion yuan ($67.01 billion), an increase of 13.6 percent year-on-year. And the per capita consumption of tourists has increased by more than 4 percentage points over the same period. The total increase in tourism consumption, meanwhile, is 3 percentage points higher than the total amount of all-round consumption in the entire province.

Marine Industry

Shandong has an advanced marine economy, accounting for one fifth of the national economic aggregate, and it has established more than 240 marine ranches with a total area of over 19,000 hectares. The province's marine ranches at provincial level and above were 55 in 2017, including 21 at the national level that were one third of the country's total, according to statements by the Shandong government. The income of Shandong's marine ranches topped 210 billion yuan ($30.61 billion) last year, leading the country.

Advantages

Shandong is an important province in terms of economy, culture and population on the east coast of China and a significant strategic fulcrum for the countries and regions along the New Eurasian Continental Bridge Economic Corridor and the Maritime Silk Road. Shandong holds the following competitive advantages:

First, with adjacent sea areas of 159,500 square kilometers, Shandong boasts the richest ocean resources in China. With only a few typhoons, the province also enjoys a unique advantage in the sea ranch industry.

Second, Shandong province shows great competitiveness in regards to large-scale foreign contract projects in all fields. Seven Shandong enterprises were included on the list of the world's top 250 international contractors in 2017 prepared by Engineering News Records. The figure of seven puts Shandong among the top provinces as it’s a solid share of the 68 Chinese enterprises on the list.

Third, Shandong is also known for its human resources. Its people enjoy a good reputation for being honest and trustworthy, hard-working and diligent. In addition to paying attention to the quality training of the overseas service and management team, Shandong province standardizes its market order and has established a service platform for foreign labor cooperation, a measure that makes Shandong a renowned brand in overseas work. There are more than 130 qualified enterprises and over 60 service platforms in Shandong that specialize in foreign labor for Chinese workers.

Forth, located on the east coast of China, Shandong province boasts many ports providing convenient transport for agricultural and manufactured goods. 

Fifth, Shandong has accelerated its construction of overseas industrial parks to provide a platform for international cooperation in regards to production capacity. Thirteen of 99 overseas industrial parks recognized by the Department of Commerce that originated from Shandong province have accumulated total investment of 5.45 billion dollars.

Investment promotion agencies

1. Department of Commerce of Shandong Province

Contact:

Tel: 0531-89013333

Address: No 6 Liyang Avenue, Jinan, Shandong  

Postcode: 250002

2. Shandong International Investment Promotion Agency

Contact:

Tel: 0531-89013557、89013321、89013559

3. Qingdao Overseas Investment Service Center/Qingdao Business Development Service Center

Contact:

Tel: 86-0532-85856855

4. Yantai Municipal Bureau of Commerce

Contact:

Tel: 0535-6251739

Fax: 0535-6247543

Address: No 10 Fuhou Road, Laishan District, Yantai, Shandong

Postcode: 264003

5. Weifang National Hi-tech Industrial Development Zone

Contact:

Tel: 0536-8095075、8095078

Fax: 0536-8095075

6. Jinan Investment Promotion Bureau

Contact:

Tel: 0535-66601798、66601796

Address: Longao Building, No 1 Longding Avenue, Lixia District, Jinan, Shandong

7. Weihai Investment Promotion Center

Contact:

Tel: +86-631-5897351      

Fax: +86-631-5215719    

Address: No 86 Middle Wenhua Road, Weihai, Shandong