The Australia-China Chamber of Commerce and Industry
of New South Wales




Shandong is shown in black.

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General Profile:

Population: 90,800,000

Regional Capital: Jinan

Average temperatures: -5 deg C to -1 deg C in January; 24 deg C to 28 deg C in July.

Physical features: The province is situated in the lower valley of the Yellow River, with hills in the central region and along the eastern peninsula.  Plains occur in the northwest and central east, with a narrow lowland in the south, especially along the south eastern coast.  The Huabei Pingyuan in the north is intensively cultivated.  The province faces the Bohai Gulf in the north and the Yellow Sea in the east.  The area of the province is 156,700 square kilometres.

Rivers: The Yellow River is the only major waterway except for the Grand Canal.

Administrative divisions: 25 cities and 86 counties.

Historical significance: The province was settled as early as the 3rd century BC, and became part of China during the Shang dynasty (1766 to about 1027 BC).  It was the birthplace of the philosophers Confucius and Mencius.  Russia tried to gain control of the eastern peninsula in the 19th century and this led to efforts of the Europeans to counteract the influence.


Natural Resources:

Shandong is rich in mineral resources and crude oil, with the latter from the Shengli Oil Field.  In 1999, its output of crude oil accounted for 17 per cent of the country's total, ranked second after Heilongjiang.  Deposits of more than 50 minerals including sulphur, diamond, graphite, coal, iron and magnetise are ranked among the largest in China.  Eastern Shandong is known for its gold deposits, which are the largest in China.

Shandong is one of the four largest salt production areas in China.  It ground water is 3 to 6 times denser than sea water. 


Economic Profile:





Economic Indicators







(% p.a.)


(% p.a.)

Gross domestic product (RMB bn)


7.0 *


10.5 *

Per capita GDP (RMB)





Disposable income per capita





  - urban (RMB) 





  - rural (RMB)





Fixed asset investment (RMB bn)





Value added by sector





  - primary (RMB bn)





  - secondary (RMB bn)





  - tertiary (RMB bn)





Retail sales (RMB bn)





Inflation (CPI, %)





Exports (US$ bn)





  - by FIEs (US$ bn)





Imports (US$ bn)





  - by FIEs (US$ bn)





Foreign direct investment





  - number of projects





  - contracted amount (US$ bn)





  - utilised amount (US$ bn)





Notes: *Estimated
China Statistical Abstract.




Water Transport -- The Shandong Peninsula has an extensive coastal area, with 26 large and small ports providing a cargo handling capacity of over 100 million tons per annum.  Qingdao Yantai and Weihai are the major cargo and passenger ports, while Rizhao (日照)is one of China's most important coal loading ports.  Dongying(東營), Longkou(龍口), Shidao(石島), Lanshan(嵐山), together with the four above-mentioned ports, were approved as first-class open ports. 

Qingdao’s container handling capacity was increased in the past few years.  In 1999, it handled more than 1.5 million TEUs of containers, making it the second busiest container port in China, after Shanghai.  China Ocean Shipping Corporation (COSCO) recently opened an express route from Qingdao to Japan recently.  The route passes through several ports including Yantai, Qingdao, Tokyo and Yokohama.

Railways -- Major railways in Shandong include Hanji railway(邯濟鐵路: Handan-Jinan 邯鄲-濟南), the Beijing-Shanghai Railway(京滬線)and Beijing-Kowloon Railway(京九線)running through the province from north to south.  The Jinan-Qingdao Railway crosses from east to west.

A new railway network will be built from Harbin in Heilongjiang to Changxing in Zhejiang.  The railway network will link the Harbin-Dalian railway and a 170-kilometre-long ferry passage from Dalian to Yantai.  It will further extend from Shandong to Zhejiang and pass through Shanghai and Jiangsu.

Highways -- Jinan-Qingdao Expressway(濟青高速公路)has opened to traffic and some expressways are under construction, which include the portion linking Beijing-Shanghai Expressway(京滬高速公路)and Beijing-Fuzhou Expressway(京福高速公路).  In addition, several new expressways linking Dongying to Qingzhou, Qufu to Jiehe, Jiehe to Linhong, Dezhou to Qihe and Rizhao to Heze(荷澤), most of which are portions of the national traffic network, were finished recently.  New expressways will be constructed including those from Laixi to Fenshui, Yantai to Laizhou and Zhuyuan to Qufu. 

Air Transport -- Shandong has 9 airports in operation.  The international airports at Jinan and Qingdao offer air routes to domestic and international cities including Hong Kong and Republic of Korea.

Telecommunications -- Shandong's post and telecommunications have developed rapidly over the past decade.  By the end of 2000, mobile phone subscribers in Shandong reached 5.1 million. 

Electricity -- Shandong is the home of the only independent power network among the country's six power networks with an annual output of 91 billion kWh.  The province also is also planning to develop wind, tidal and solar energy.



The cities along the coast are heavily industrialised but there is a variety of agricultural activities in the interior of the province.
  Yantai is a key export base of agricultural products, focusing on apples, peanuts and vegetables.  Output of many agricultural products, such as grain, cotton, oil-bearing seeds, vegetables, meats and fruits, are ranked the top in the nation.  Specialties include: Yantai apples, Leling jujubes, Laiyang pears, Pingdu grapes and Dezhou watermelons.

With a 3,300 km-long coastline, which accounts for one-sixth of China's total, Shandong has a large fishery and aquaculture industry.  In 1999, its aquatic output ranked the first in the country.  The province leads the country in the exports of prawns, crabs, scallops, shellfish, algae, abalone, sea cucumber and sea urchin.



Shandong is the third strongest industrial production base in China, after Guangdong and Jiangsu.  Industrial activity is mainly located in Qingdao, Yantai, Weifang, Jinan and Weihai.  Major industries included textiles and garments, machinery, consumer electronics, building materials, metals, petrochemicals, steel, coal and soda ash, and food processing. 

In 1999, the province's output of chemical fertilizer rose to 3.9 million tons and is ranked the first in the country.  Cement production reached 9.5 million tons and is also ranked first.  Many other industrial products also ranked high in the country, including soda ash, caustic soda, raw salt, paper, wine and beer, cotton yarn, clothes, and synthetic detergents.

Many of China's large industrial enterprises are based in Shandong.  This includes the following:

Qingdao Haier Group(青島海爾集團)
Qingdao Hisense Group
Etsong Tobacco Group
Qilu Petrochemical Corp.(齊魯石化總廠)
Jinan Chemical Fibre Corp.(濟南化縴總公司)
Tsingdao Beverage
Shengli Oil Field
Laiwu Iron & Steel Corp.
China Qingqi Group
Small-Duck (Xiaoya) Washing Machine Group
Jinan Iron & Steel Group
Jinan No.2 Machine Tools Factory

Other brand names include the following:

China Qingqi Motorcycles(中國輕騎)
Kongfujia Liquor(孔府家酒)
Yellow-River Truck(黃河卡車)
Zibo Porcelain(淄博陶瓷)and
Weifang Kite

Shandong plans to concentrate on the development of its electronics and information technology industries.  Priority will be given to the development of computers, telecommunications, software applicable to information networking and network telecommunications.  The province will also develop software applicable to network engineering and telecommunications, as well as software related to the Internet and support software.   Currently, about 1,220 enterprises are engaged in new and high-tech industry in the province.

In 2000, Shandong's exports totalled US$16.1 billion.  Major export goods were machinery, electronics, chemicals, textiles, gar­ments, etc.  Major export markets were Japan, the US, Republic of Korea, Hong Kong and Germany. 

Shandong imported US$12.2 billion in merchandise in 2000.  Major import commodities included steel, machinery, wool, chemicals, raw materials, computers, complete sets of equipment and technology and fertilizers.  Major import sources were Republic of Korea, Japan, the US, Germany and Russia.


Science and Technology:

Five state-level economic and technological development zones (, tourism zones and holiday resorts and bonded trade zone are established in Qingdao, Yantai and Weihai.  In addition, Shandong has opened a high-tech belt across the Shandong peninsula in the middle and southern part of the province with over 1,200 high-tech enterprises.  The province has state-level high-tech zones in Jinan, Qingdao, Weihai, Weifang and Zibo, and also provincial-level zones in Zaozhuang, Yantai, Jining, Tai'an, and Linyi.

Qingdao EDTZ(青島經濟技術開發區was established in October 1984 with the approval of the State Council.  Currently, there were 1,058 foreign-invested projects from 47 countries and regions with total investment more than US$2.6 billion.  Most overseas investments are in machinery, chemicals, building materials, property, tourism, trade, textiles and other light industries.  Investors from France, Sweden and Japan, have set up more than 1,100 businesses in the zone, with combined overseas capital of about US$2.2 billion.  Pillar industries in the zone include electrical home appliances, bio- pharmaceutical products, machinery and chemical fibres. 

Yantai EDTZ(煙台經濟技術開發區)was established in October 1984 with the approval of the State Council.  Overseas direct investment are encouraged to invest in information technology, new materials, automotive parts, pharmaceuticals, bioengineering, machinery, electronics, computer, textiles, furniture, chemicals, rubbers and other light industries.  During the past few years, investors from the US, Japan, Germany and Republic of Korea, have set up more than 800 businesses in the zone with total investment of US$2.7 billion. 

Weihai EDTZ(威海經濟技術開發區)was established in October 1992 with the approval of the State Council, the zone has established more than 10 small industrial development zones, including Hong Kong Investment Zone, Taiwan Investment Zone, South Korea Investment Zone, Chemical Development Zone, Textile Development Zone, Building Materials Development Zone, and High-tech Development Zone.  The zone welcomes foreign investors to invest in high-tech, high added value, and pollution-free projects in electronics, light industries, textiles, chemicals, building materials, and food-processing industries.

Qingdao Bonded Zone(青島保稅區)was established in November 1992 with the approval of the State Council, the zone implements more liberalised and preferential policies to attract foreign trade and investment.  Foreign investments are encouraged to invest in export processing, transit trade, storage, hi-tech projects, transport and international finance.  The zone has set up a gold, silver and jewellery processing park, an electronic industrial park, an export-oriented industrial area and area for the rubber processing industry. In the first six months of 2000, the zone approved 99 overseas-funded projects with contractual overseas investment of US$76.8 million. 

Qingdao Shilaoren Tourism and Holiday Resort Zone(青島石老人國度假區)is located at the eastern Qingdao and was approved to establish by the State Council in October 1992.  With 12.5 km-long coastal lines and 2 km-long beaches, the zone will be developed into a modern vacation and tourism centre.


Consumers’ Market:

Shandong ranked third in terms of retail sales of consumer goods in China, after Guangdong and Jiangsu.  In 2000, the province's total sales of consumer goods reached RMB 254.6 billion.  Major consumer markets are located in Jinan, Qindao, Yantai, Weifang and Weihai.

Major department stores and shopping centres in Shandong include Jinan Yinzuo Shopping Centre(濟南銀座商城), Qingdao Liqun Co., Ltd.(青島利群股份有限公司), Qingdao Hisense Plaza(青島信信廣場), Jinan Guihe Plaza濟南貴和購物中心, Qingdao Chinese Goods Shareholding Corp.(青島國貨股份有限公司), Jinan People's Shopping Centre(濟南人民商場), Qingdao Laoshan Department Store(青島嶗山百貨大樓), Jinan Hualian(濟南華聯)and Jinan Department Store(濟南巿百貨大樓).

Qingdao was one of the first 12 pilot cities approved by the State Council to form Sino-foreign retail joint ventures with import-export rights.  At present, there are 3 famous multi-international department stores/supermarkets have invested in Qingdao, they are Parkson, Jusco and Carrefour.  In addition, a Taiwanese-invested retail gaint has been set up in Jinan recently -- the Jinan Renmin Daruifa Commercial Co. Ltd., with total investment of US$30 million.


Key Cities in Shandong:

Coastal region, including port cities:

Ø       Qingdao

Ø       Yantai

Ø       Weihai

Central industrial region, including:

Ø       Jinan

Ø       Weifang

Ø       Zibo

The cities are listed below according to their ranking by industrial output.


Qingdao 青島:


1999 data:



Industrial Output

Retail Sales


(RMB bn)

(RMB bn)

(RMB bn)

7,030 (+0.5%)

99.3 (+11.8%)

114.9 (+10.9%)

27.0 (+11.6%)

Qingdao lies on the Yellow Sea.  It became a city under German influence in the early part of the 20th century.  The port, which rarely freezes over, serves the industrialised northern Huabei Pingyuan and was expanded in 1976 to include an oil terminal for large tankers on Huang Dao.

The leading industries of the city include textiles, railway equipment, rubber goods, fertilizer, and chemicals. Tsingtao beer, brewed in Qingdao, is marketed internationally.


Jinan 濟南:

1999 data:



Industrial Output

Retail Sales


(RMB bn)

(RMB bn)

(RMB bn)

5,576 (+0.7%)

88.1 (+7.3%)

62.9 (+5.9%)


Jinan, located in the north-central region of the province, along the Yellow River, is is a major industrial and transport centre.  Products include include steel, machinery, tools, chemicals, motor vehicles, textiles, and processed food.  Mineral springs and some notable religious and historical sites are situated here.

The city is located at the foot of the Tai Mountains, which is of holiest from ancient times.  Historic sites include the Thousand Buddha Cliff, the Four Door Pagoda, and the Valley of the Buddhas Temple.  Jinan was founded in the 8th century BC, Jinan was part of the Lu state and an early religious centre.


Yantai 煙台:

1999 data:



Industrial Output

Retail Sales


(RMB bn)

(RMB bn)

(RMB bn)

6,447 (+0.2%)

81.0 (+8.1%)

89.6 5.5%)

23.2 (+9.4%)

Yantai lies on the Yellow Sea and is a major port for the northern region.  Like Qingdao, it began as a fishing village and outpost against invasion.  The name means “smoke terrace” and was derived from the practice of lighting fires to warn the fishing fleets of pirate ships.

The port was opened to foreign trade in 1862, but did not attract foreign concessions, although trading establishments were started by the Japanese and Americans.

The city is known for its fruit-based wines and spirits.


Weifang 濰坊:

1999 data:



Industrial Output

Retail Sales


(RMB bn)

(RMB bn)

(RMB bn)

8,400 (+0.5%)

64.7 (+6.4%)

61.5 (+6.6%)


Weifang is the easternmost city of the Jinan-Zibo-Weifang grouping and is located about 150 kilometres from Qingdao.  It lies at the intersection of the main east-west roadway in the Shandong Peninsula and two diagonal roadways.


Zibo 淄博:

1999 data:



Industrial Output

Retail Sales


(RMB bn)

(RMB bn)

(RMB bn)

4,057 (+0.5%)

56.8 (+6.0%)

60.0 (+15.0%)


Zibo is midway between Jinan and Weifang, in a major coal-mining area.  Excavations not far from Zibo (at Linzhi) yielded 600 house skeletons dating back to the Qi Dynasty (479-500 AD).

The city is noted for its glassworks and porcelain.


Weihai 威海:

1999 data:



Industrial Output

Retail Sales


(RMB bn)

(RMB bn)

(RMB bn)

2,462 (+0.2%)

50.1 (-5.7%)

83.1 (+5.5%)

13.8 (+3.8%)

Weihei is about 60 kilometres east of Yantai and remained a somewhat obscure port until a ferry service to Inchon was opened shortly after the People’s Republic and the Republic of Korea normalised diplomatic relations.


Information Sources:


Information contained in this page was obtained from:

Hong Kong Trade Development Council (


Additional Information:


We are in the process of maintaining regular contact with organisations in the cities listed.  Please contact us if you require additional information about Shandong Province or any of the cities listed.



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