II . Economy
i. Economic Aggregate
Economic aggregate of Shandong ranks 2nd place in our country. In 2005, Shandong realized GDP 1.8 trillion Yuan,15% higher than the previous year. The growth rate has kept two-digit number for 15 continual years. Per capital GDP reached 19,500 Yuan, i.e. about 2,400 dollars by the current rate. Respective proportion of the primary, secondary and tertiary industries is 10.6%, 57.4% and 32.0%.
ii. Resources and Industry and Agriculture
Mineral Resources
Shandong has discovered 150 kinds of mineral resources, 58 kinds of which have reserves ranking in the top 10 of the country. Resources ranking at the first place include gold, sulphurite, gypsum, quartz sandstone used for glass and facing granite; those at the second place include diamond and magnesite; those at the third place include petroleum, graphite, salt, geotherm, limestone, etc. Shengli Oilfield is the second largest petroleum production basis; extraction of oil in the province accounts for 1/3 that of China. Coal bearing strata area is 50,000 sq.km and annual raw coal production is 132 million tons.
Marine Resources
Three sides of Shandong peninsula is closed by sea; therefore it has rich marine resources. Total coastline is over 3,100 km-about 1/6 of the continental coastline of China; coastal tidal flat area is over 3,000 sq.km, and sea area of sea approach is 170,000 sq.km. Fishery resources in sea approach are mainly fishes, shrimps, crabs, cephalopoda, shellfish, echinoderm, etc.
Agriculture Shandong is an important agricultural area of China. Output of major agricultural products like grains, cotton, oil, vegetables, fruits, meat and aquatic products comes out at the top of the country. In 2005, Shandong realized total agricultural output value 366 billion Yuan, which was at the first place of the country. Agricultural product export was about 1/4 that of the country.
Farm Production
Crop area is more than 10 million hectare. Its major crops include wheat, corn, soybean, rice, cotton, peanut, vegetables fruits and etc.
Animal Husbandry
Livestock breeding stock of Shandong is at the fist place of the country. In 2005, Shandong realized gross animal husbandry output value 112.5 billion Yuan, 10% higher than the previous year. Total meat output was 8.66 million tons, total poultry eggs output 4.68 million tons, and total milk output 2.76 million tons.
Aquatic Products Industry
Shandong is endowed with rich fishery resources, and it has largest output of aquatic products of China. In 2005, major ocean industries realized output value 240 billion Yuan, 13% higher than the previous year.
Total aquatic product output was 7.2 million tons.
Industry
In 2005, Shandong realized gross industrial output value 3,538.743 billion Yuan, including light industry output value 1,312.413 billion Yuan, accounting for 37.09%, and heavy industry output value 2,226.33 billion Yuan, accounting for 62.91%.
Manufacturing
Major manufacturing includes chemical industry, metallurgy, manufacture of building materials, machinery, shipbuilding, automobile, electronics, household appliances, textile, foods, etc. Chemical industry, manufacture of building materials, household appliances, textile, foods, etc have important status in China. Shandong has many world famous brand-products enterprises, such as Qingdao Haier, Hisense, Yantai Dongyue, Jinan Heavy-Duty Truck, Zibo Xinhua Pharmacy, Binzhou Weiqiao Textile, etc.
Mining Industry
Coal mining and dressing, petroleum and gas exploitation, ferrous metal mining and dressing, etc are relatively developed.
Economic indicator of enterprises like Shengli Oilfield, Yanzhou Mining and Zhaojin Group come out at the top in the same industry of the country.
iii. Business Data
Import & Export
In 2005, total export and import volume of Shandong was 76.9 billion dollars, 26.5% higher than the previous year, including export volume 46.3 billion dollars, increasing by 29%, and import volume 30.6 billion dollars, increasing by 22.8%.
Trade Partners
There are more than 200 countries and regions establishing trade relation with Shandong Province.
Trade Structure
Export of textile costume, agricultural product and machinery and electrical appliances in 2005 was respectively 10.78 billion dollars, 6.9 billion dollars and 13.58 billion dollars, and the corresponding proportion in gross export of the province was 23%, 15% and 29%; respective import of them was about 1.48 billion dollars, 4.87 billion dollars and 10.16 billion dollars, and the corresponding proportion in gross import of the province was 5%, 15% and 34%.
Export in general trade, processing trade and other trade was respectively about 23.1 billion dollars, 22.8 billion dollars and 540 million dollars, and the corresponding proportion in gross export was 50%, 49% and 1%; import of them was respectively about 12.59 billion dollars, 13.26 billion dollars and 4.14 billion dollars, and the corresponding proportion in gross import of the province was 42%, 44% and 14%.
Introducing Foreign Investment
In 2005, Shandong practically used foreign investment 11 billion dollars. There are more than 130 countries and regions investing in Shandong. The top six sources are Korea, Hongkong, America, Japan, Taiwan and the British Virgin Islands.
Foreign capital is mainly invested in agricultural and subsidiary foodstuff processing industry, communication facilities, computer and other electronic equipment manufacturing, textile costume, shoes and cap manufacturing, transport and communication facilities manufacturing, universal device manufacturing, nonmetallic minerals manufacturing, textile industry, chemical feedstock and chemicals manufacturing, electrical machinery and apparatus manufacturing, special equipment manufacturing, etc.
Partners
There have been 116 enterprises ranking in the top 500 strong enterprises of the world invested in Shandong, such as American General Motors, Agere, Hewlett Packard, Universal Container, Coca Cola, Pepsi-Cola, Mcdonalds, Kentucky tar sand; Japanese Mitsubishi, Mitsui, Itochu Corporation, Sumitomo Corporation, Panasonic, Marubeni Corporation, Sojitz Corporation, Hitachi, Suzuki; British/Dutch Shell Petroleum, Unilever; German Simens, Metro; French Carrefour, Total; Swiss Nestle Coffee; Korean Daewoo, Samsung, Hyundai, SK, LG, etc.
Investment abroad
By the end of 2005, Shandong has approved 1,075 enterprises (organizations) to invest abroad. Total investment of Chinese and foreign parties through contract was 1.47 billion dollars, 1.07 billion dollars of which was invested by Chinese parties. The investment covered fields like household appliances, textile costume, mineral products, wood, machinery, food processing, light industry, information technology, planting, marine product processing, farm machinery, real estate, advertisement, tourism, diet, fishery, etc., and the investment was distributed in more than 100 countries and areas.
Resource development, manufacturing and service trade has gradually become three major fields for investment abroad.
Contract foreign projects and cooperation of labor service
By the end of 2005, Shandong had signed foreign project and labor service contracts with total value of 11.2 billion dollars and realized turnover 8.5 billion dollars involving industries like construction, transportation, petrochemical, electric power, fishery operation, machine-building and electronics industries, fishery harvesting, agricultural planting, textile costume, diet service, food processing and computer software. Relevant business spread over 100 countries and regions. The major markets include Japan, Korea, Singapore, Israel, Hongkong, South Asia, Africa, Middle East, West Asia, etc.
Shandong Electric Power Construction Corp., Shengli Petroleum Administration Bureau, Qingdao Construction Group, China Railway Shisiju Group Corporation, Shandong International Corporation, Weihai International Corporation and Yantai International Corporation are major enterprises to contract foreign project and labor export service. By the end of 2005, Shandong had cumulatively export labor service 280,000 person-time, and the number of people sent out abroad by then reached 70,000.
Technology introduction
During 2001-2005, Shandong registered altogether 2,286 technology introduction contracts with value of 1.04 billion dollars, including 331 contracts on permitted transfer of patent and proprietary technology with contract value of 310 million dollars, 1,531 contracts on technical consultation service with contract value 530 million dollars, and 424 contracts on others with contract value of 200 million dollars. In 2005 Shandong registered 658 technology introduction contracts with value of 430 million dollars (technology cost of 260 million dollars and equipment cost of 170 million dollars)
Circulation of commodities
In 2005, Shandong realized total volume of retail sales of social consumer goods 510 billion Yuan, increased by 15% than the previous year; more than 300 commodity transaction markets realized business volume over one hundred million Yuan, including 10 approved retail enterprises invested by foreign businessmen. There are more than 3,000 enterprises engaged in materials circulation.
Large-scaled domestic and oversea circulation enterprises like Denmark Maersk Group, Japan Itochu Corporation, Korea Hanjin, Singapore Singamas, and domestic China National Materials Storage & Transportation Corp. and Cosco have been set up in Shandong. Now there are 67 circulation gardens constructed or under construction.
Related Articles:
Doing Business in Shandong Province of China: I. Survey
Doing Business in Shandong Province of China: III. Investment
Doing Business in Shandong Province of China: IV. Development Zones
