HONG KONG- Between December 4 and 7, the People's Government of Shandong Province held "Hong Kong-Shandong Week 2018". The event, themed "Select Shandong, Share Opportunities", took place in Hong Kong. On December 5, at the marketing event to further spur the development of Shandong's top ten industries by bringing in investment from abroad, Shandong Provincial Party Committee secretary Liu Jiayi delivered a keynote speech entitled "Describing the deep relationship between Shandong and Hong Kong while sharing Shandong's opportunities", according to PRNewswire on Dec. 7, 2018.
During his speech, Mr. Liu said, "During the 40 years of reform and opening up, Shandong's GDP experienced an average annual growth rate of 11.5%, increasing to 7.27 trillion yuan (approx. US$1.06 trillion), while the province's general public budget revenue grew on average by 12.4% annually, reaching 609.85 billion yuan (approx. US$88.6 billion). With a land area of less than 2% of the entire country, the province contributed 9% to the country's overall economy, 13% to industrial output value and 8% to agricultural output value." Over the past several decades, the opportunities that were made available in Shandong were fully demonstrated in the following sectors:
Shandong Opportunities: Conversion between New and Old Drivers
The province of Shandong is home to the first comprehensive pilot zone approved by the country in which the main goal is to transform old economic development drivers to new ones. The provincial government identified 10 key industry clusters and is focusing on nurturing five emerging clusters: next-generation information technology, advanced equipment, renewable energies and new materials, modern maritime exploration and development as well as the senior and health care industries, while undertaking the transformation of five high-end sectors: chemical engineering, modern agriculture, cultural creativity, luxury tourism and modern finance. The province established industry investment funds with assets totaling 600 billion yuan (approx US$87.2 billion) and invested nearly 4 trillion yuan (approx US$581 billion) in more than 900 key projects. The province's top 10 industries are expected to make up about 60% of its total industrial output value by 2022.
Shandong Opportunities: Confucian Culture
Shandong province has held several events with the aim of promoting Confucian culture and encouraging the province's many millennial entrepreneurs to innovate this year, including events such as the International Summit on Innovation and Development of Youth Entrepreneurs, the Event of the Ministry of Foreign Affairs (MFA) Presenting Shandong Province, the Confucian Merchants Conference, the Nishan Forum on World Civilizations and the Confucius Cultural Festival.
Shandong Opportunities: Maritime Strategy
Shandong province has a coastal area encompassing 159,000 square kilometers and a coastline spanning 3,345 kilometers, which includes 589 islands and over 200 bays. The province, number two in China in terms of cargo throughput capacity, has three ports each with throughput capacity exceeding 400 million tons. It is home to China's sole National Laboratory for Marine Science and Technology, the National Deep Sea Center, the Center for Ocean Mega-Science, as well as large-scale multipurpose oceanographic research vessels, the semi-submersible drilling platform "Blue Whale II" and the Jiaolong manned deep-sea submersible. The added value contributed by its modern marine industry will represent more than 23% of the province's economy over the next three years.
Shandong Opportunities: Agricultural Leader
Shandong leads among China's provinces and regions in terms of eight agricultural indexes including both gross output value and added value and accounts for one fourth of the country's exports of agricultural products, serving as a model for the rest of the country's agricultural industry.
Shandong Opportunities: Further Reform
Globalization is inevitable for Chinese businesses and as a result, Shandong province has released a series of policies that will further the original opening-up program, establishing three pilot areas in support of the effort: one for trade cooperation between China and members of the Shanghai Cooperation Organization, one for economic cooperation between China, Japan and South Korea, and one for free trade.
Looking forward, the province plans to step up its efforts in terms of participation in the One Belt, One Road initiative, comply with international business laws and enhance protection of IP rights in a move to create a market-regulated, international and laws-based business environment.