New growth drivers expanding fast in Shandong

Shandong's output of industrial robots and servers in 2018 increased by 100 and 76.2 percent respectively while that of pig iron rose by 1.8 percent. Cement production, however, was down by 4.5 percent.

Comparisons of the latest indicators of industrial enterprises above the designated scale in Shandong show that the province has made great progress in replacing old economic growth drivers with new ones.

Old growth drivers in Shandong include industries such as traditional manufacturing while the new growth drivers include industries like intelligent manufacturing and renewable energy.

In January, 2018, the State Council approved Shandong's action plan to build a comprehensive pilot zone with the specific goal of transforming old economic development drivers to new ones, upgrading the construction of the zone into a national strategy.

To realize these goals, Shandong plans to give energetic support to 10 industries to foster new growth drivers as well as modern and competitive industrial clusters.

Shandong is home to high-speed train developer and producer CRRC Qingdao Sifang. [Photo/China Daily]

They include five emerging sectors, such as new-generation information technology, high-end equipment and modern maritime industry and medical and health services, which are vital to developing new growth economic engines and gaining a competitive edge in the future. 

The other sectors cover green chemicals, modern high-efficiency agriculture, cultural creativity, tourism and modern finance, which will be upgraded from traditional modes to generate immense development potential and brighter market prospects. 

With a total investment of 1.1 billion yuan ($162 million), the biological pharmaceutical device project and the medical imaging product factory by Shinva Medical Instrument Co is stepping up construction in the Zibo High-Tech Industrial Development Zone.

"The two projects are among the first of Shandong’s projects to advance the action of replacing old economic growth drivers with new ones. After completion, they will produce annual output value of 1.5 billion yuan, greatly promoting the development of high-end medical equipment in the province," said Yan Yongfen, a manager from Shinva Medical Instrument Co.

In order to create a favorable environment for innovation and entrepreneurship and effectively serve the transformation of old and new drivers, Shandong has rolled out a series of preferential measures in terms of funds, polices and government services.

It has set up a 600-billion-yuan fund to support the accelerated development of key projects.

Shandong has also empowered 70 provincial legitimate authorities of Jinan, Qingdao and Yantai to give full play to the leading role of the three cities in pushing forward the replacement. 

One of China's first coastal provinces to carry out the opening-up policy, Shandong is accelerating construction of an opening-up highland by implementing the Belt and Road Initiative. 

More than half of Shandong's cities are operating freight trains to Asian and European countries, forming an international sea and land corridor connecting Japan and South Korea to the east, and central Asia and Europe to the west.

Qingdao, a vibrant coastal city of Shandong, is building a demonstration zone to promote trade between China and SCO member countries inside the Eurasian Economic and Trade Cooperation Industrial Park.

"Shandong will continue to develop the 10 new growth driver industries, strengthen innovation, reform and opening up, and streamline administration and optimize government services to reach new heights in social and economic development," said Zhang Xinwen, director of the Shandong Provincial Development and Reform Commission.

A production line at SAIC Motor Corp in Yantai. [Photo/China Daily]