An Overview of Shandong
Shandong is located in the eastern part of China and traversed by the main south-to-north traffic artery. It is at the intersection of Bohai-Rim Economic Zone and Yangtze River Delta Economic Zone and the center of East Asia Economic Circle. It also plays an important role in the Silk Road Economic Belt and the 21st-Century Maritime Silk Road. The total land area is 158,000 square kilometers, of which 6.635 million hectares are arable.
Shandong is one of the most populous provinces in China. The number of permanent population was 98.472 million by the end of 2015, ranking the second in China.
Shandong has a warm temperate monsoon climate.
History and culture
Shandong is one of the important cradles of Chinese culture and the Chinese nation. It is blessed with beautiful natural scenery, plentiful cultural relics and abundant tourism resources. It is where Confucius was born, where Mount Tai rose majestically to the sky and where the Yellow River empties into the sea.
Shandong is rich in mineral resources. More than 30 mineral resources are among top ten in China in terms of reserve, the output of crude oil is almost 1/3 of the country’s total, and the output of coal takes up 6%. Shandong is endowed with unique marine resources, with a 3345km-long golden coastline, 1/6 of China’s total.
There are 142 institutions of higher education with 1.797 million students, 460 secondary vocational schools with 948,000 students, and 203 technical schools with 329,000 students. There are high-level international schools in such municipalities as Jinan, Qingdao, Yantai, Weihai and Rizhao, where foreigners can send their children to receive primary and secondary education. Every year 1.1 million jobs are created in cities and 1.3 million rural laborers are transferred to cities.
The mileage of railway and highway is 5,412 kilometers and 259,000 kilometers respectively. The annual handling capacity of 7 coastal ports of Qingdao, Yantai, Rizhao, Weihai, Weifang, Dongying and Binzhou is 1.29 billion tons, including 660 million tons of foreign trade cargo, ranking number one in the country. Total installed capacity is 97.16 million KW， and the power generation capacity from new energy is 16.07 billion kilowatt hours.
There are 4 international airports in Jinan, Qingdao, Yantai and Weihai and more than 300 international and domestic air routes. There are now direct international flights to Seoul, Incheon, Busan, Osaka, Hong Kong and Singapore, and the year 2016 will see the launching of international flights to San Francisco, Los Angeles, Madrid, Frankfurt and Melbourne.
Shandong is a major producer of grain, cotton, peanut and vegetables in China. Grain output hits 47.125 million tons, vegetable, fruit and meat outputs rank the first, and cotton and oil-bearing crops the second place. There are 38,962 industrial enterprises above the designated size, with annual prime business revenue 14.3 trillion yuan and profits 876.3 billion yuan. 51 of China’s top 500 companies are from Shandong. The sales revenue of food, paper-making, gold and tire ranks the first, machinery, light industry and building materials the second, and automobile and metallurgical industry the third. The service sector plays a dominant role in absorbing investment, creating jobs and paying taxes, and finance and insurance, modern logistics, commercial services and cultural tourism are pillar industries driving the growth of service sector.
Shandong is the third largest economy in the country. Its GDP hit 6.3 trillion yuan in 2015, 10,000 USD in per capita terms. The per capita disposable income for urban residents reached 31,545 yuan, rural residents 12,930 yuan. The total retail volume of consumer goods was 2776.14 billion yuan, the second in China. Import and export totaled 241.75 billion USD, including 144.06 billion USD of export. Paid-in foreign investment was 16.3 billion USD, mainly in such areas as electronic information, automobile and parts, pharmaceutical, chemical, engineering machinery, financial, logistics, wholesale and retail, and real estate. 203 Fortune Global 500 companies invested in 642 companies in Shandong. Shandong has established business relations with over 220 countries and regions and set up offices in more than 130 countries and regions.
Industrial parks and zones
There are 173 development zones at or above the provincial level, including 15 state-level economic and technological development zones and 13 state-level high and new technology industrial development zones. The capability of absorbing capital including foreign investment has been enhanced. The zones also have access to better services in finance, logistics, engineering support, information, technical support and scientific and technological innovation.
Work Priorities of the 13th Five-Year Plan
During the 13th Five-Year Plan period, Shandong will actively adapt to and guide the new normal in economic development and pursue innovative, coordinated, green, open and inclusive development. The annual average growth rate of GDP will be around 7.5%, and the GDP and average income for urban and rural residents will double the figures of 2010 ahead of schedule. Industries will move upstream to medium and high end, and the share of service industry will reach about 55%, the quality and efficiency of economic development to be remarkably improved. The province will seek more innovation-driven development and raise the share of R&D fund to 2.6%. Work priorities are as below:
Implement the “Made in China 2025” Plan. Efforts will be made to accelerate the transformation and upgrading of such traditional competitive industries as food and light industry, foster new generation of information technology, rail transport equipment and marine engineering equipment and other sunrise industries, enlarge and expand the service sector, and develop a modern industrial system dominated by service economy.
Build a batch of infrastructure projects. Qingdao Jiaodong International Airport and Heze Airport will be built and put into operation. We will strive to complete the building of Jining Airport and Liaocheng Airport, and start the construction of Zaozhuang Airport. We will pursue coordinated cooperation between the ports and shipping companies, and develop modern port clusters. We will build nuclear power bases in Haiyang and Rongcheng and several wind farms on the land and the sea. We will improve the next generation internet and other information infrastructure, and speed up the systemic construction of big data, cloud computing and the internet of things. Shandong will encourage the building of sponge cities, and put in place more than 800 kilometers of underground utility tunnels. We will improve the urban three-dimensional microcirculation traffic network, and actively facilitate the construction of rail transit system in Qingdao, Jinan and other municipalities.
Promote SOE reform. We will further accelerate the mixed ownership reform of SOEs, bring in overseas strategic investment, redesign and better the capital mix of SOEs. We will encourage private companies to forge strategic partnership with overseas capital and realize the integration of technology, capital and market.
Speed up new-type urbanization. We will grant urban citizenship in due course to migrant workers, residents of villages in the city and in the urban fringe, and the locally employed workers in other rural areas. We will achieve the full coverage of basic urban public services in education, health, social security, employment and housing for permanent residents. The urbanization rate for permanent residents will be enhanced to above 65% and that for registered residents to above 55%.
Continue to strengthen guarantee for people’s livelihood. We will adopt a more active employment policy, and spur employment and encourage entrepreneurship among all groups, with particular focus on the college graduates. We will encourage mass entrepreneurship and innovation. We will achieve a balanced improvement in elementary education, speed up the development of modern vocational education, explore the establishment of modern university system, and strive to build first-class universities offering first-class disciplines.
Develop energy conservation and environmental protection industry. The “Industry Green Power” plan will be implemented and work will be done for ultra-low emission transformation of coal-fired power plants and boilers. We will promote technologies that boost coal efficiency and explore various applications of clean coal burning. We will monitor it so that businesses treat volatile organic compound properly. Green transport will become a name card of the province, all the newly-built structures will follow the green standard, and energy consumption per floor area of public institution buildings will be cut by over 2%. We will support new-energy vehicles.
Open wider to the outside world at a higher level. We will actively participate in the “Belt and Road” Initiative, pursue internationalization of industries, companies, projects, and personnel. We will strengthen strategic cooperation and industrial connection with Fortune Global 500 companies and leading businesses. Businesses will be encouraged to undertake overseas contracted projects and get involved in energy resource exploitation, international cooperation on production capacity and equipment manufacturing. More will be done to introduce advanced technologies, and import energy resources, critical equipment and components. We will redouble our efforts to expand service trade, and step up development of cross-border e-commerce and foreign trade comprehensive service businesses. We will test the administration model that features pre-establishment national treatment plus negative list and apply for permit to build China (Shandong) Pilot Free Trade Zone. International schools, hospitals and communities will be developed in accordance with local conditions.