The China (Shandong) Pilot Free Trade Zone was approved by the State Council on Aug 26, 2019 as one of the 18 pilot free trade zones in China.

Goal

Shandong focuses on nurturing new businesses, developing the marine economy and deepening China-Japan-Republic of Korea economic cooperation at the sub-national level, with the aim of becoming a new bridgehead of China’s opening-up.

Scope of implementation

With a total area of 119.98 square kilometers, the Shandong pilot FTZ covers three areas, including Jinan, the provincial capital, and the coastal cities of Qingdao and Yantai.

Division of functions

Jinan Area, of 37.99 square kilometers, covers Jinan International Financial City, the core area of the Jinan Innovation Zone and the core area of Tangye district. It will prioritize artificial intelligence, industrial finance, health care and elder care, cultural industry and information technology. It will also pilot new systems for developing an open economy. The area is to be established as a center of regional economics, logistics and technical innovation with national influence.

By 2022, Jinan Area is expected to be home to over 20,000 companies and have an output value of more than 1 trillion yuan.

Qingdao Area, of 52 km sq, is located in Qingdao city’s West Coast New Area and incorporates 9.12 square kilometers of the Qingdao Qianwan Free Trade Port Zone and 2.01 square kilometers of the Qingdao West Coast Bonded Area. It takes up 43.3 percent of the total FTZ area in Shandong, and will prioritize modern marine industries, foreign trade, shipping logistics, modern finance and advanced manufacturing to emerge as an international shipping hub in Northeast Asia, a major innovation center in China’s eastern coastal areas and an important costal city in China.

By 2022, Qingdao Area is expected to have no less than 30,000 companies settled, with an import-export volume of $30 trillion, double that of 2018.

Located in Yantai Economic & Technological Development Area, Yantai Area covers a 29.99-square-kilometer district and consists of two state-level industrial parks, Sino-Korea Yantai Industrial Park and 2.26 square kilometers of the western district of the Yantai Free Trade Port Zone.

It will prioritize high-end equipment manufacturing, new materials, new generations of information technology, energy conservation and environmental protection, biomedicine as well as productive service industry. The area is to be established as a pilot area of Sino-Korea trade and investment cooperation, an intelligent manufacturing base of marine equipment and a model area of domestic and international technology transfer.