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Research on Shandong Economy

With the aggregate GDP ranking second among all provinces, Shandong has been playing an important role in the economic development of China. Owing to the suitable natural environment and convenient transportation, agriculture and industry have traditionally become leading factors that prompt the booming economy of Shandong. However, during recent years, tourism and bioindustry have also become mainstay industries. In order to realize a comprehensive economic progress, Shandong is now putting more attention to other new industries, such as new material, new information technology, new medicine, new resource, and sea exploiting. In 2011, GDP of Shandong amounted to 45.429trillion yuan, 10.9% more than 2010, becoming the third provinces that enter the “40 trillion-province club” in China. As reported by governor of Shandong province, Mr Jiang(2012), Shandong is now experiencing speeded upgrading, Strong impetus, good economy basis, modern industrial system, and a stable supportive condition. However, seeing from that the average GDP is low while the aggregate GDP is so high, Shandong also has some drawbacks in development process. Unreasonable industrial structure, extensive developing method, weak technological innovation, slow increase in investment demand all hinder the smooth development of Shandong. Under these stress, Shandong will enlarge internal demand, control the price, construct modern industrial system, strenthen the innovation of social administration to realize the goal of an increased 9.5% in GDP. In Shandong, Qingdao, Yantai and Jinan are the first three cities of highest GDP. During the following paragraph, the economy condition of Jinan, the provincial capital, will be illustrated particularly.

Jinan is the third biggest economy in Shandong with it’s GDP in 2011 totaled 3.017 trillion yuan. Jinan’s leading industries include transportation equipments, Iron and steel metallurgy, machinery, food and drug, electronic information, and petrochemical industry. During these years, tourism and culture industry have been put on the list of main industries. According to the government plan of 2012, Jinan will invest 4.55 billion yuan on the culture industry, especially stress the development of 12 cultural programs which value10 billion yuan. in this aspect, what is worth to point out is the economic impact the “National Games” brought to Jinan. Firstly, large numbers of customers and tourists brought great profit for Jinan companies. Secondly, construction of infrastructures and game sites created many jobs which greatly reduced the unemployment rate of Jinan. Thirdly, it brought opportunities for the improving and upgrading of technology, especially the creation of environment-friendly equipments. from the “National Games”, Jinan has continued to speed the economic development, even more comprehensively. In the future 5 years, Jinan will concentrat on speeding industry progress, transfer of traditional industrial enterprises from internal to the external industrial zones, technology innovation. The purpose is to enable Jinan to enter a new economic stage and become a economy leader in Shandong.

More on Research in China from Daxue Consulting Research China