Introduction to the Economic Overview and Business Environment of Qingdao City

01 February, 2025 0

Qingdao is located in the southeast of Shandong Province, in the southern part of the Shandong Peninsula. It borders the Yellow Sea to the east, Jiaozhou Bay to the south, Yantai City to the northeast, Weifang City to the west, and Rizhao City to the southwest. The total area of the city is 11293 square kilometers, of which the urban area is 5226 square kilometers, and the three cities of Jiaozhou, Pingdu, and Laixi have an area of 6067 square kilometers.

Qingdao is a prefecture level city under the jurisdiction of Shandong Province, abbreviated as "Qing", also known as "Island City" or "Qindao". Qingdao is a sub provincial city and a planned city, located in the northern temperate monsoon region, with a temperate monsoon climate. Due to the regulation of the marine environment, it has significant maritime climate characteristics. The history of Qingdao can be traced back to 1891 when the Qing government stationed troops and established Jiao'ao. In 1897, Germany leased and built a port and railway, and in 1930, it was renamed Qingdao City. After the liberation, Qingdao became a provincial-level city in Shandong Province. In 1981, it was listed as one of the 15 economic center cities in China, and in 1994, it was listed as one of the 15 vice provincial cities in China.

As of the end of 2023, the permanent population of Qingdao City is 10.3715 million, of which the urban population is 7.4389 million. Qingdao is an important coastal center city in China and a leading city in the core area of the Shandong Peninsula Blue Economic Zone. Qingdao's economic performance is remarkable, achieving a regional GDP of 1671.946 billion yuan in 2024, an increase of 5.7% over the previous year.

Qingdao is not only an important economic center city, but also has rich historical, cultural, and tourism resources. Qingdao is the birthplace of the May Fourth Movement and the host city for the sailing competitions of the 2008 Beijing Olympics and the 13th Paralympic Games. Qingdao has many famous attractions, such as Laoshan Mountain, Zhanqiao, May Fourth Square, Badaguan, Qingdao Olympic Sailing Center, etc. In addition, Qingdao is also known as the World Beer City and the World Sailing Capital, with several well-known universities such as Shandong University (Qingdao), Beihang University (Qingdao Campus), Ocean University of China, and China University of Petroleum.

The economic overview of Qingdao in 2024 is as follows:

Overall economic performance: In 2024, the gross domestic product (GDP) of Qingdao City was 1.671946 trillion yuan, an increase of 5.7% compared to the previous year at constant prices, higher than the national average level (5.0%).

Industrial structure:

The added value of the primary industry was 50.82 billion yuan, an increase of 4.0% over the previous year. Agricultural production is stable, with abundant supply of major agricultural products. The total grain output was 3.214 million tons, an increase of 28000 tons or 0.9% from the previous year.

The added value of the secondary industry was 572.31 billion yuan, an increase of 7.1%. Industrial production has grown rapidly, with the added value of industries above designated size increasing by 9.4% compared to the previous year. The growth of equipment manufacturing and high-tech manufacturing is particularly significant.

The added value of the tertiary industry was 1.049554 trillion yuan, an increase of 5.0%. The service industry continues to improve, with strong support from the productive service industry, accounting for 62.8% of the GDP and contributing 56.0% to economic growth.

Main economic indicators:

Industrial production: Among the 35 major industries, 27 industries achieved growth, with the added value of equipment manufacturing increasing by 11.0% and the added value of high-tech manufacturing increasing by 12.8%.

Agricultural production: The total output value of agriculture, forestry, animal husbandry and fishery was 97.38 billion yuan, an increase of 4.1% over the previous year; The total output of grain is 3.214 million tons, and the total output of meat, eggs, and milk is 1.187 million tons.

Service industry: The added value of productive service industry was 592.1 billion yuan, an increase of 6.6%, and the contribution rate to the growth of service industry was 74.2%.

Foreign trade: The total import and export value of foreign trade for the year was 907.67 billion yuan, an increase of 3.6% over the previous year, of which exports were 527.82 billion yuan, an increase of 12.0%; Imports amounted to 379.85 billion yuan, a decrease of 6.2%.

Employment and income: 371100 new urban jobs were created throughout the year, and the per capita disposable income of residents was 59922 yuan, an increase of 5.2% over the previous year.

Policy background: Qingdao City is anchored in the principle of "leading the way and shouldering the big beam", focusing on the primary task of high-quality development, adhering to the principle of seeking progress while maintaining stability, promoting stability through progress, and promoting the implementation of various decision-making arrangements. The main economic indicators have maintained stable growth, the industrial structure has been continuously optimized, new driving forces have accelerated growth, and people's livelihoods have continued to improve.

The overall performance of Qingdao's business environment is excellent, ranking in the top ten of China's urban ecological and environmental business competitiveness for two consecutive years, and achieving significant achievements in multiple aspects. ‌

Qingdao has shown outstanding performance in ecological protection and business competitiveness. Qingdao has been ranked among the top ten in China's urban ecological and environmental protection business competitiveness for two consecutive years, and has been rated as "excellent" for four consecutive years in the assessment of the effectiveness of the province's pollution prevention and control campaign. The air quality has significantly improved, with 313 excellent days harvested throughout the year, an increase of 25 days compared to last year. The annual average concentration of major air pollutants has reached the national second level standard for five consecutive years. In terms of water quality, all 20 national and provincial controlled surface water sections meet the standard, and the proportion of areas with excellent water quality in nearshore waters reaches 99%.

In terms of specific measures, Qingdao has taken multiple innovative measures to optimize the business environment. For example, the Southern District of Qingdao has innovatively established a multi-level government enterprise deep interactive communication mechanism of "12+N", and built a three-level linkage business environment reception room system of "city, district, and street" to help enterprises solve their demands and difficulties. In addition, Qingdao High tech Zone has launched the "e-Enterprise Torch Chain" platform, integrating multiple entities such as financial institutions, enterprises, and research institutions to help enterprises stabilize orders and expand markets. The Qingdao Free Trade Zone has also been awarded the title of "Benchmark Park for China's International Business Environment Construction" for four consecutive years, and has launched a series of institutional innovations and service optimization measures, such as the "Free Filling and Reporting" service for export tax refund (exemption) declaration and the new model of "Intelligent Form" service for enterprise registration business.

These measures and achievements together constitute an excellent business environment in Qingdao, providing a favorable development environment and support for enterprises.