III . Investment
i. Policy and Administrative Rules
Catalogue of Related Laws
Foreign Trade Law of the People's Republic of China
Customs Law of the People's Republic of China
Law of the People's Republic of China on Import and Export Commodity Inspection
Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures
Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures
Law of the People's Republic of China on Foreign-Capital Enterprises
Company Law of the People's Republic of China
Law of the People's Republic of China on the Entry and Exit Animal and Plant Quarantine
Law of the People's Republic of China on Control of the Entry and Exit of Aliens
Law of the People's Republic of China on the Control of the Exit and Entry of Citizens
Securities Law of the People's Republic of China
Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises
Individual Income Tax Law of the People's Republic of China
Law of the People's Republic of China on the Administration of Tax Collection
Environmental Protection Law of the People's Republic of China
Law of the People's Republic of China on Evaluation of Environmental Effects
Law of the People's Republic of China on Promotion of Cleaner Production
Law of the People's Republic of China on Prevention and Control of Desertifi cation
Marine Environment Protection Law of the People's Republic of China
Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution
Law of the People's Republic of China on Prevention and Control of Environmental Pollution by Solid Waste
Law of the People's Republic of China on Prevention and Control of Water Pollution
Law of the People's Republic of China on Prevention and Control of Environmental Noise Pollution
Law of the People's Republic of China on Prevention and Control of Radioactive Pollution
Frontier Health and Quarantine Law of the People's Republic of China
Labor Law of the People's Republic of China
Trade Union Law of the People's Republic of China
Searching Website for the Related Laws
1 . Searching System of Laws and Regulations of China (website of National People's Congress of China)
http://law.npc.gov.cn:87/home/begin1.cbs
2. China Legislative Information Network System
http://www.chinalaw.gov.cn/jsp/jalor/index.jsp
3. Ministry of Commerce
http://www.mofcom.gov.cn
The above-mentioned websites are for reference only.
ii. Key Investment Fields
Focusing on the development of transport and communication facilities, electronic information industry, home appliances, textile and clothing industry, chemical and medical industry, food and other industries, Shandong Province has well-formed chains in those fields. Foreign merchants are encouraged to invest in those industries to further their development.
1.Transport and communication facilities
Key transport and communication facilities include cars, trucks, special vehicles and ships with high added-value such as supertankers, container ships, oceaneering ships, long-range fishing and factory ships, high-speed luxurious yachts, etc.
2. Electronic information industry and home appliances
Key products of electronic information industry include computer and its matching parts, industrial automatic equipment and control system, high-performance digital-control SPC exchange, base station equipment, optical fiber communication and matching systematic equipment, mobile communication facilities, etc. Key home appliances include digital home appliances and housing products. It aims to regenerate traditional products and develop small appliances.
3. Textile and clothing industry
Textile and clothing industry focuses on the development of western-style suits, shirts, fashionable clothing, knitting underwear and coats, and sport clothes to improve design and production.
4. Chemical and medical industry
Chemical and medical industry attaches first importance to develop petrochemical products, frontier fine chemical products, rubber, drugs against tumor and cardiovascular disease, vitamin products made of halobios, generic engineering medicines and vegetable drugs.
5. Food industry
Food industry puts emphasis on the development of oceanic foods, grain products, farming and poultry products, juice beverage, beer and dry red wine to raise processing level and added value.
Shandong Peninsula Manufacturing Base
It is composed of 28 counties (or cities, districts) of Qingdao, Yantai, Weihai, etc. Its has an area of 30,000 km2 and an population of 16.09 million, accounting for 19% and 17% of that of Shandong province respectively.
Qingdao is the host city of the sailing events for the 2008 Olympic Games. In 2005, its GDP reached 250 billion Yuan.
Nowadays, Qingdao is quickening its pace to develop home appliances, locomotives, shipbuilding industry, petrochemical industry and new material industry.
GDP of Yantai in 2005 reached 200 billion Yuan. Yantai makes great efforts to develop new promising industries and products such as automobiles, electric components, machines and computers.
GDP of Weihai in 2005 reached 120 billion Yuan. Weihai's traditional industries such as machinery, chemical and building material industries and new high-tech industries such as electronic information, new material and bioengineering industries are all developing at a high speed.
There are three civil airports in Qingdao, Yantai and Weihai. All of them are international airports. The annual passenger throughput of Qingdao airport is 8.6 million man times, goods/parcels throughput 119,000 tons.
Qingdao, Yantai and Weihai have 18 ports totally, including 200,000-ton crude oil ports, 5,200,000-ton ore appropriate berths, bulk cargo ports and coal ports.
In the future five years, Qingdao, Yantai and other coastal cities are planning to establish 26 sea port berths, with an increase of goods throughput of 70 million tons.
Economy of Shandong Peninsula is developing at the fastest speed in Shandong province. It has 33,438 foreign-invested enterprises till now. Its actual used foreign capital reaches 38 billion dollars, accounting for 59.7% among the total amount of Shandong province; its value of foreign trade in 2005 was 49.2 billion dollars accounting for 64.3% among that of Shandong province; its number of world top 500 corporations which have invested in Shandong province accounts for 66% of that of Shandong province.
iii. Living Environment
Urban living environment
Shandong province is characterized by its honest people, stable society, great public security, complete public facilities, complete facilities for business activities and leisure time entertainment. Its urbanization rate is 45%; urban population density is 921 persons/km2; area of a forestation is 121,477 hectares; per capita public green space is 13.93 km2; rate of tap water is 99.19%; annual sewage-disposal capacity is 1.173 billion m3. Weihai city is named as the best city to live in, and was awarded 2003 Annual Habitat Scroll of Honor by United Nations.
Yantai was awarded the 2004 Annual Award for Living Environment in China. Qingdao is a famous tourism city as well as one of the top 10 cities with economic vitality in China.
International schools
In Shandong coastal cities such as Qingdao, Yantai and Weihai, special schools have been established to educate foreign children whose parents are working here, and local governments have worked out many favorable polices for their schooling.
For detailed information, please visit
Qingdao Education Information Website http://www.qdedu.net/
Yantai Education Information Website http://www.ytedu.edu.cn
Weihai Education Information Website http://www.whedu21.com/
Medical and hygienic services
Shandong province has 16,000 hygienic organizations, including 3,000 hospitals/ health centers, 177 hygiene and disease control organizations and 149 women and children health centers, with a total amount of ward beds of 230,000. Those organizations have 136,000 doctors and 96,000 nurses totally.
iv. Reference Prices of Basic Elements
1. Electricity for non-industrial and normal industrial use: 0.7152 Yuan/kWh
2. Electricity for non-household lighting: 0.7972 Yuan/kWh
3. Electricity for large-scale industries: 0.6252 Yuan/kWh
4. Gas for industrial use: 1.2 Yuan/m3
5. Gas for business: 1.5 Yuan/m3
6. Water for hotels and restaurants: 3 Yuan/m3
7. Water for enterprises and institutions: 3 Yuan/m3
8 .Industrial land to lease (near outskirts): 120-270 Yuan/m2
9. Industrial land to lease (far outskirts): 45-90Yuan/m2
10. Communication cost
(1) Fixed-line phone: Phone calls within a business district: 0.22 Yuan for the first three minutes, 0.11 Yuan per minute from the fourth minute; phone calls between business districts: 0.4 Yuan per minutes; domestic long-distance calls:
0.07 Yuan/6 seconds; phone calls to Hong Kong, Macao and Taiwan: 0.20 Yuan/6 seconds; international calls: 0.80 Yuan/6 seconds.
(2) Mobile phone: Monthly rental of GoTone: 50 Yuan/month; local calls: 0.4 Yuan/minute; international calls: 0.80 Yuan/6 seconds.
Related Articles:
Doing Business in Shandong Province of China: I. Survey
Doing Business in Shandong Province of China: II. Economy
Doing Business in Shandong Province of China: IV. Development Zones
