Economy of Qingdao

An important region in Eastern China, Shandong Province has seen substantial change in its economic landscape in recent years. Much of this development has been concentrated in Qingdao. Qingdao has seen rapid development. With an annual growth rate of 18.9 percent in 2006, the city's GDP reached 42.3 billion, ranking first in Shandong Province and tenth out of China's top 20 cities. GDP per capita comprised RMB¥52,895 (US$7,616) in 2008. The GDP has grown steadily at an average pace of 16% annually. In 2006, Qingdao was ranked one of six "golden cities" by the World Bank, out of 120 Chinese cities assessed on factors including investment climate and government effectiveness.

Internationally, Qingdao is perhaps best known for its Tsingtao Brewery, founded by a German-British joint venture in 1903 that produces Tsingtao beer, the most well-known Chinese export beer. It is also home to Haier, a large white goods manufacturer, and Hisense, a major electronics company. In 2002 guitar manufacturer Epiphone opened a factory in Qingdao.

In 1984 the Chinese government named a district of Qingdao a Special Economic and Technology Development Zone (SETDZ). Along with this district, the entire city had gone through amazing development of secondary and tertiary industries. As an important trading port in the province, Qingdao flourishes with foreign investment and international trade. South Korea and Japan in particular made extensive investment in the city. Approximately 80,000 South Korean citizens reside there. Construction proceeds at a relatively fast pace in Qingdao.

In terms of primary industry, Qingdao has an estimated 50,000 acres (200 km²) of arable land. Qingdao has a zigzagging pattern coastline, and thus possesses an invaluable stock of fish, shrimp, and other sea resources.

Qingdao is also home to a variety of mineral resources. Up to thirty different kinds have been mined. Qingdao's wind power electricity generation performs at among