1．Key Fields for Foreign Investment

Shandong Province focuses on the development of industries in the fields of transportation equipment, IT & household appliances, textile & garments, chemical and pharmacy and foodstuff, etc., so as to form an industrial chain integrating automobile, ship building, information technology, household appliances, textile and garments, chemical and pharmacy and foodstuff processing. Foreign investors are encouraged to engage in the development of these industries.

Transportation Equipment
Emphasis will be put on automobile and shipbuilding. Automobile industry will focus on the development of cars, heavy-duty trucks and special-purpose vehicles, and shipbuilding industry will highlight the development of such high-value-added and luxurious ships as super oil tankers, container ships, sea engineering vessels, ocean fishing and processing vessels and high-speed luxurious yachts.
Information Technology and Household Appliance
For IT industry, efforts will be pooled to develop computer and associated parts, industrial automatic equipment and control system, program-controlled digital telecom switches, base station equipment, optical fiber telecommunication and system supporting facilities, mobile telecommunication device, etc. And for household appliances, priority will be given to develop digital appliances and integrated multi-purpose appliances, upgrade traditional household appliances and actively develop small appliances.
Textile and Garments
Focus will be put on the development of western suits, shirts, fashion wear, knitted underwear and coats, casual wear and sportswear, as well as the enhancement of designing and processing level.???
Chemical and Pharmacy
For chemical industry, priority will be given to develop petrochemical products, new fine chemical products and rubber products. And for pharmaceutical industry, emphasis will be put on the development of anti-carcinogen, anti-cardiovascular and vitamin-effective marine biological medicines, gene medicines and herbal medicines.
Foodstuff
Efforts will be devoted to develop seafood, grain and edible oil products, livestock and poultry products, fruit juice drinks, low-proof beer, pure draught beer and juicy dry grape wine, as well as enhance the in-depth processing level and increase the added values.

2．Key Districts for Foreign Investment

Shandong Peninsula Manufacturing Base
Major Cities
Shandong Peninsula Manufacturing Base encompasses the three cities of Qingdao, Yantai and Weihai, having jurisdiction over 28 counties (cities and city districts at the county level). It covers an area of 30 thousand sq. km. with a total population of 16.09 million, accounting for 19% and 17% of the total figures of the province.
Qingdao is the partner city of Beijing for hosting aquatic sports of 2008 Beijing Olympic Games. Its GDP in 2005 amounted to 250 billion yuan. At present it is expediting the development of four industries in the fields of electronics and household appliances, locomotive manufacturing and ship building, petrochemicals and new materials.
Yantai City realized a GDP of 200 billion yuan in 2005. Its newly emerging industries include those of automobile, electronic components, machinery, computer, etc.
And Weihai City registered a GDP of 120 billion yuan in 2005. It is witnessing a rapid development of its traditional industries in the fields of machinery, chemicals and building materials, as well as its new- and high-tech industries covering the fields of information technology, new materials and biological engineering.

Transportation Facilities
The three cities own three civil airports, all of which are international airports. The annual passenger flow capacity of Qingdao Airport amounts to 8.6 million persons/times, and the cargo and postal matters handling capacity 119,000 tons.
There are 18 seaports in this area, including crude oil wharfs and berths specially for shipment of ores with the capacity of 200 thousand shipping tons respectively, as well as the modernized bulk cargo berths and coal berths.
In the following 5 years, 26 new berths will be constructed in the three coastal cities to increase a cargo handling capacity of 70 million tons.

Advantages for Hosting the Transfer of International Industries
Shandong Peninsula area boasts the most developed economy in Shandong Province. At present, 33,438 foreign funded ventures have been established, with an actual foreign capital input of US$38 billion, accounting for 59.7% of the effected foreign investment in the province. In 2005 foreign trade volume of the area reached US$49.2 billion, accounting for 64.3% of the total figure of the province. The number of world top 500 enterprises that have invested in this region accounts for 66% of the total number in the province.

3．Economic and Technological Development Zones

Shandong has established 71 economic development zones of provincial level or above, including 3 state-level economic and technological development zones, one bonded area and 5 export processing zones. Most of the economic development zones in Shandong, enjoying satisfactory investment environment and offering preferential policies, serve as important areas in the province for foreign cooperation.
Qingdao Economic and Technological Development Zone was founded under the approval of the State Council in 1984. As a state-level economic and technological development zone, it puts emphasis on the development of modern ports, heavy chemical industry, electronics and household appliances, biological pharmacy, international trade and tourism.
Yantai Economic and Technological Development Zone was founded under the approval of the State Council in 1984. As a state-level economic and technological development zone, it highlights the development of machinery, automobile spare parts, electronics and information technology, chemical fiber and textile, biological pharmacy, etc.
Weihai Economic and Technological Development Zone was founded under the approval of the State Council in 1992. As a state-level economic and technological development zone, it focuses on the development of new- and high-tech industries in such fields as electronics and information technology, biological engineering, new energy and new materials, as well as urban infrastructure construction.
Qingdao Free Trade Area was founded under the approval of the State Council in 1992 to develop foreign trade, bonded logistics and distribution, and export processing.
Yantai Export Processing Zone, as one of the first 15 export processing zones approved by the State Council, focuses on the development of bioengineering, electronics industry, pharmaceutical industry, fine chemical industry, machinery industry, new materials, chemical fiber and textile industry, light industry and automobile industry.
Weihai Export Processing Zone, founded under the approval of the State Council in 2000, gives prominence to develop electronics and information technology, precision machinery, biological engineering, medical engineering, new materials and foodstuff processing.