Qingdao, Yantai and Weihai, three coastal cities in east China’s Shandong Province, are likely to attract more Japanese and South Korean manufacturers in the near future, said Shandong Province Vice Governor Sun Shoupu. Speaking at a Thursday press conference in Jinan, the provincial capital, he stated that the cities’ geographical advantages and long experience in international trade offer benefits both to Shandong and to foreign investors.
The cities are already home to many famous-name Chinese companies and leaders in foreign investment cooperation. Yantai and Weihai, located across the sea from Japan and Korea, have established a number of manufacturing and trading bases with the two countries.
“The Shandong government has laid out an ambitious plan to make Qingdao, Yantai and Weihai into manufacturing bases,” said Sun. “These bases should enhance international cooperation, especially with Japan and South Korea.”
The three cities occupy 19.1 percent of Shandong’s territory and are home to 17.6 percent of its population. All industrial and tourism cities, they accounted for a combined 31.6 percent of the province’s total GDP and 62.2 percent of its foreign trade in 2003.
Such leading domestic manufacturers as Hai’er Group, Hisense Group, Tsingdao Beer and Changyu Winery have well-established bases in the cities.
“By the end of July this year, the three cities had approved investments of 10,000 Korean enterprises with US$11.4 billion and 2,247 Japanese enterprises with US$2.6 billion,” Sun said. “They have become the most popular places for the two countries to invest in Shandong Province.”
Trade between Shandong and Japan and South Korea is well balanced. Mechanical and electrical products that are needed by Shandong are mostly imported from the two nearby countries, while the cheap labor, large market and daily-use consumer goods from Shandong are valuable to its partners.
In the past three years, trade between Japan and Shandong has increased 49 percent, while that with South Korea has jumped 70 percent.
“To attract more Japanese and South Korean enterprises to Shandong, infrastructure functions must be improved,” Sun said. “Foreign-related laws and public service systems such as schools, medical facilities and housing all need upgrading.”
The three cities are located on the Jiaodong Peninsula, whose 2,552-kilometer coastline holds 18 harbors capable of handling 200 million tons of cargo annually. There are also three civil airports with 59 domestic flight routes and two international airports serving 13 international airlines.
(China.org.cn by staff writer Unisumoon, September 17, 2004)
