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Overview of the Economy of Shandong Province

Overview of the Economic Conditions 

Shandong, as “Lu” for short, is located in the eastern part of China and surrounded by Bohai Sea and East China Sea. It is also in the lower reaches of the Yellow River. The total land area is of 156,700 km2. There are 17 prefecture-level cities and The population of the permanent resident is of 96 million in 2010. In 2011, Shandong achieved a GDP of 3941.62 billion Yuan. And the distribution of such GDP is as follows (Table 1).

The proportion of the primary industries, known as the farming, forestry and fishing industries in the contribution to the whole GDP of Shandong Province gets shrinking these years. On the contrary, the proportion of the tertiary industries which covers the service industries increases stably. In addition, statistic analysis shows that the trend of the secondary industries which include the mining, manufacturing and power sectors is a flat U-shaped curve. And during the year 1985 to the year 1990, it reached the bottom of the U curve. As for the speed increasing proportion of the three industries, they are 4.7%, 17.9% and 14.5% respectively.

The investment in the fixed assets in Shandong is up to 1054.15 billion Yuan with the increasing speed of 38.2%, which is the most outstanding in China. But the utilization of the foreign fond in Shandong is weak with the amount of only 8 billion Yuan.

Retail sales of consumer goods in Shandong in 2005 are of 611.6 billion Yuan which is the third most in China with a increasing speed of 15.8%.

Exportation is the vulnerable spot in Shandong Province. The only city which achieved the amount of exportation of more than 10 billion dollars is Qingdao. With the commendable geographical location of lots of cities around the coastline in Shandong, it should have been more exportation than now. So during the next few years the main goal of Shandong Province is to push exports more aggressively.