Shandong is China’s second largest economic powerhouse in terms of gross domestic product (GDP), ranked after Guangdong province and ahead of Jiangsu, and is likely to be one of the key beneficiaries of the Chinese government’s recently unveiled 4 trillion yuan stimulus package. In 2007, the east coastal province achieved GDP of 2588.77 billion yuan (US$379 billion).
The number of unemployed in Shandong increased by 680,000 in the first 9 months of 2008 according to official figures. In mid-November, companies in the Shandong and Hubei provinces were informed that they had to seek state approval for layoffs of 40 or more employees. Average salary per worker in the last three quarters of this year was 18,378 yuan (US$2,703), up 18% year on year.
In response to the ongoing economic turmoil, the Shandong government has apparently earmarked 800 billion yuan (US$116 bn) investment in 240 key projects to spur development of its agricultural, manufacturing and social service sectors. Guangdong has proposed a 2.3 trillion yuan plan while Jiangsu has announced the launch of a 1.2 trillion yuan package, with around 11 billion yuan set aside for building affordable or low-rent housing.
Situated in the Bohai Rim and the country’s largest agricultural product-exporting province, Shandong’s population is about 93 million and its major cities include Jinan, Qingdao, Yantai, Weihai and Rizhao. With a GDP of 288 billion yuan (US$41.8 bn) in 2007, Yantai ranked seventh of China’s 14 coastal cities and second in Shandong province.
In addition to its namesake beer, Qingdao has gained a reputation for being home to some of China’s best companies including home appliance giant Haier. However, battered by the global financial storm, the city’s export growth fell by 9% in the first three quarters of this year, according to the bureau of foreign trade and economic cooperation.
Qingdao has a total population of approximately 7.6 million. In 2007, the city’s GDP was $379 billion yuan (US$55.5 billion) and its per capita GDP reached US$6,000.
