First row: Six Honorary Citizens, second row: Ambassadors of Friendship

Ms. Gwenn Sonck (left) and Shandong Party Secretary
Liu Jiayi (right)

Gwenn Sonck, Executive Director of the Flanders-China Chamber of Commerce (FCCC) and of the EU-China Business Association (EUCBA) was awarded honorary citizenship of Shandong province at a ceremony in Jinan, the provincial capital, on September 29 to celebrate the 70th anniversary of the founding of the People’s Republic of China. Provincial Communist Party Secretary Liu Jiayi presented the honorary certificate at the ceremony, which was also attended by Governor Gong Zheng.

Shandong is a coastal province in East China, south of Beijing and Tianjin, with a population of about 100 million. Qufu, the birthplace of Confucius, is located in the province. Shandong is one of the richer provinces in China and a major producer of cotton, wheat and garlic. It has large deposits of gold, diamonds, sapphire and petroleum. Three of China’s famous brands are located in the coastal city of Qingdao: Tsingtao brewery and electric appliances manufacturers Haier and Hisense. Due to its proximity to Japan and South Korea, Shandong province has attracted significant investments from those countries. It is also a major wine producer with more than 140 wineries, including Changyu and Great Wall.

Economy

Shandong’s GDP reached CNY7.65 trillion in 2018, making it China’s third wealthiest province, while its GDP per capita was CNY76,000 in 2018, according to the China Daily. The province’s foreign trade amounted to USD292.39 billion in 2018. Its export of agricultural products has ranked first in the country for 20 years in a row. The number of foreign-invested enterprises surged from 1 in 1980 to over 15,000 in 2018. There are 15 national-level economic and technological development zones and 134 provincial-level ones in Shandong.

Besides being a major agricultural producer, Shandong has a developed high-tech industry, including rail equipment, machine tools and technical equipment. The tertiary sector has now overtaken the secondary industry in importance, with tourism rapidly developing. Revenues from the chemical, building materials and medicine sector rank first in the country. The province is the top producer of 46 key products in China. As Shandong stands in the forefront of intelligent manufacturing, the city of Qingdao has been chosen to develop as a pilot city for the Made in China 2025 initiative.

Shandong is endowed with agricultural and marine resources. In 2017, the gross output value of agriculture, forestry, animal husbandry and fishery of Shandong stood at CNY914.0 billion, accounting for 8.4% of China’s total. As a base of agricultural and marine production, Shandong has developed strong food manufacturing and food processing industries. Due to the rich natural resources, particularly oil and coal, Shandong’s excavating and energy industry is very strong. In 2017, Shandong accounted for 11.7% of China’s total crude oil production. Industries are mainly located in Qingdao, Yantai, Weifang, Jinan and Weihai. Shandong’s industrial output has been dominated by heavy industry which accounted for about 67.1% of the gross industrial output. Nonetheless, Shandong is also a cradle for many national giants in light industry.

Foreign investment

FDI in Shandong is mainly concentrated in the manufacturing sector. By the end of 2017, the manufacturing sector accounted for 63.6% of the cumulative total of utilized FDI. In 2017, FDI going to the tertiary sector accounted for 28.1% of the total FDI. Real estate is important, accounting for 35.7% of the cumulative total of utilized FDI in the tertiary sector by the end of 2017. Hong Kong surpassed South Korea and became Shandong’s largest source of FDI. In 2017, FDI from Hong Kong accounted for 50.2% of Shandong’s utilized FDI. In 2017, other major foreign investors came from South Korea, Singapore and Germany. Qingdao, Yantai and Jinan are the primary destinations of overseas investments. Multinational companies such as the German Metro, Siemens, the French Carrefour, Daewoo, LG and Samsung of South Korea, Toyota of Japan, and Kellogg’s of the U.S. have already set up their subsidiaries in Shandong.

Shandong and the Flanders-China Chamber of Commerce

The province offers numerous opportunities for Flemish companies, and several of them – including Bekaert and Beaulieu – have already established subsidiaries or joint ventures in Shandong.

The Flanders-China Chamber of Commerce (FCCC) has a cooperation agreement with the Shandong provincial government and with the city of Weihai. Located on the easternmost tip of the Shandong peninsula, Weihai is building itself into an international city. Due to its proximity to South Korea, trade and investment relations with that country are developing fast. Weihai has a population of 2.8 million and generated a GDP of CNY364 billion in 2018. Two national-level development zones – the Weihai Economic & Technological Development Zone and the International Port Economic and Technological Development District – welcome foreign investors. In 2018 the city attracted CNY8.6 billion in foreign investment, an increase of 5.5% year-on-year and the foreign trade volume reached CNY13.92 billion.

Companies which are interested to develop or strengthen their business with Shandong province, can send an e-mail to gwenn.sonck@flanders-china.be