Qingdao Municipal Overseas Investment Promotion Bureau

A Shipping Center in Northern China

Port:

One of China’s major trade ports, Qingdao has wharfs for ores, crude oil and coal and operates more than 90 international sea routes to more than 450 ports in more than 130 countries and regions around the world. In 2007, the port handled 265 million tons of cargo, of which 190 million tons came from foreign trade. The port handled 9.46 million standard containers in the year, becoming one of the top 10 ports in the world.

Logistics:

Qingdao has planned to build:

Qianwan Port Logistics Center

Airport Logistics Center

Development Zone Logistics Center backed by Haier, Hisense and Aucma

Laogang Logistics Center

High-Tech Logistics Center

Centeral Logistics Center

Airport:

Qingdao Airport operates 82 domestic lines to main cities, including Beijing, Shanghai, Guangzhou; 12 international (regional) lines linking with Tokyo, Osaka, Fukuoka, Seoul, Busan, Daegu, Paris, Singapore, Bangkok, Frankfurt, Los Angeles and Chinese Hong Kong and Macao. In addition, it connects with major world cities via the five international hubs of Beijing, Shanghai, Hong Kong, Tokyo and Seoul. Each week, it handles more than 1,200 flights.

Flying Hours from Qingdao to Neighboring Cities

Seoul: 1 hour Fukuoka: 1.5 hours Tokyo: 2 hours and 40 minutes

Osaka: 2 hours Beijing: 1hour Shanghai: 1hour Guangzhou: 2.5 hours

Developed Railway and Highway Networks:

Qingdao’s highway mileage totals 14,326 kilometers. It boasts of nine expressways, with a combined mileage of 700 kilometers. It tops the list of similar Chinese cities in terms of expressway density. As a result, a “1-hour drive” Economic rim is largely in place.

An Economic and Financial Center in Northern China

Currently, many Chinese and foreign banks have established branches in Qingdqao

Foreign-funded Banks	Chinese Banks	Insurance Companies	Insurance Representative Offices
Hong Kong and Shanghai Banking Corporation Yamaguchi Bank Ltd. Of Japan Korean International Bank Industrial Bank of Korea Bank of China Hong Kong Bank of East Asia Ltd. Standard Chartered Bank Overseas Chinese Banking Corp. Ltd. Of Singapore Shinhan Bank of Korea	Bank of China Industrial and Commercial Bank of China China Construction Bank Agricultural Bank of China Bank of Communications China Citic Bank Everbright Bank China Merchants Bank Huaxia Bank Shenzhen Development Bank Evergrowing Bank China Minsheng Banking Corp. Ltd. Shanghai Pudong Development Bank	Haier New York Life Heng An Standard Life	Mitsui Sumitomo Insurance Co., Ltd. Samsung Fire& Marine Insurance Nipponkoa Insurance Co.,Ltd.

One of China’s Top 10 Economically Dynamic Cities

Famed as pearl on the Yellow Sea coast, a showcase of diverse architectural styles and city of beer, Qingdao is a prime place for foreign investment. With an excellent environment for investment and living, such as many world-renowned brands and products, unrivalled economic advantages, a fair market order, fine social security comfortable living conditions, efficient government work, complete infrastructure facilities and guaranteed personal and property safety, Qingdao was rated by CCTV in 2004 as one of China’s top 10 economically dynamic cities and won the “Award for Entrepreneur satisfaction”. In 2004 and 2005, Qindao was citied as a city with best business climate in China by the American Fortune magazine (Chinese version). In 2005， it ranked first in the category of urban investment environment in the 2004 rating of Chinese cities in terms of competitiveness published by China Institute of City Competitiveness. In 2006, Qingdao was cited by the World Bank as a “gold-medal city” for its investment climate. In 2007，the added value of the industrial enterprises above the state-designated scale totaled 169.681 billion yuan.

One of China’s First Cities Opening to Outside World Foreign Trade

Foreign Trade:

Qingdao’s import and export totaled 43.605 billion dollars in 2007. While export reached 26.776 billion dollars, import stood at 16.829 billion dollars. The city has trade relations with more than 200 countries and regions in the world.

Foreign investment:

In 2007, Qingdao approved 1,068 foreign-invested projects and actually utilized 3.806 billion dollars of foreign capital. 80of the world top 500 invested in 164 projects in the city.

Economic Cooperation:

By the end of 2006, Qingdao had established 289 investment projects in 46 countries and regions, with a total registered capital of 571.23 million dollars.

Main Exhibitions to Be Held in 2007:

China International Consumer Electronics Fair July 6-9

China Qingdao Marine Festival July

2007 Qingdao international Sailing Tournament August 11-24

17th Qingdao International Beer Festival August 11-27

ASEM Trade and Investment Fair on SMEs October 29-November 1

2007 world Forum on Innovation October

One of China’s Best Tourist Cities

A city against the mountain and overlooking the sea, Qingdao boasts of well-preserved European architectures and rich tourist resources. It is a famous seaside tourist city, cited by the United Nations as one of China’s 10 most promising cities and one of China’s top 10 habitable cities. It has also been cited by the State Council as a national model city for environmental protection.

With its excellent natural and cultural environment, Qingdao is the only co-host city for the 2008 Olympic Games where 11 gold medals will be awarded. The city will host the sailing event of the 2008 Olympic Games. Paul Henderson, president of the International Sailing Federation, said, ”Qingdao is one of the most beautiful cities in Asia and is fully qualified for hosting the Olympic sailing event. I am confident that she will become the best marine venue in Asia.

It has 131 star-rated hotels.
It received 33.669 million tourists from

China

and abroad, and earned 40.03 billion yuan in tourist revenue, of which 675 million dollars were international tourist revenue.

A Famous Chinese City for Marine Studies

A leading oceanographic city in China, Qingdao claims nearly half of the country’s oceanographic personnel and institutions. The city is also strong in electronic information technology, new materials technology, biotechnology and agro-technology.

In 2007, Qingdao produced 506 important research results, of which 8 won the national award for science and technology. Also in the year, a total of 2,245 technical contracts were signed, with the total contractual value being 914 million yuan. In addition, 7,016 patents were applied and 3,595 patents were granted.

24 academicians from the Chinese Academy of Sciences and the Chinese Academy of Engineering

Ocean University of China, a key university under the Ministry of Education and the only institution of higher learning devoted to oceanography in China

At present, there are 28 institutes of higher education with a total enrollment of 254,000 students

560 independent research institutions

89 key laboratories

11 national corporate technological centers

The Capital of Famous Chinese Brands

Qingdao is a city where one can feel the power of famous brands any time. The city’s famous Chinese brands account for 4.8% of the country’s total. The brands created here have influence across China and are making inroads into the outside world.

A City with Best Business Climate in China

The American Fortune magazine in 2005 rated Qingdao seventh among China’s cities with best business climate. The magazine says that as a beautiful seaside city, its advantages in geographic location and urban environment are not reproducible, its efficient government administration, reasonable business cost and excellent industrial structure and infrastructure are gradually becoming attractive to investors, and its potential in the future is immense. In the Governance, Investment Climate, and Harmonious Society: Competitiveness Enhancements for 120 Cities in China published by the World Bank in November 2006, Qingdao was cited as a “gold-medal city” ranking second.

Government Efficiency and Transparency

Qingdao is the first Chinese city to introduce the government working systems such as “lump-sum declaration”, ”one-stop service” and “one-stop examination and approval” in order to reduce the business cost of corporate investment and increase the rate of investment returns. In the meantime, it has simplified the institutions and procedures for examination and approval, opened the mayor’s hotline, and the hotlines for complaining against the efficiency of civil servants and for complaints by foreign businessmen.

Merchandise Market:

In 2007, Qingdao’s merchandise markets totaled 865, with the retail volume of consumer goods rising to 119.918 billion yuan, It boasts of the presence of many of the world top 500 enterprises and well-known multinational companies, including Wal-Mart, Jusco, Carrefour, METRO, No 1 Parkson, B&Q, Bonjour, Fu-Mart, McDonald’s, KFC, OBI, SUBWAY, Pizza Hut, Watsons and Itokin.

Medical Care:

Qingdao has 248 hospitals, with 29,000 beds.

Schools:

The Qingdao MTI International School, the Qingdao International School, the Qingdao Korean International School, the Qingdao Yuehua Korean School, the Qingdao Japanese International School and other primary and middle schools can enroll the children of foreigners working in Qingdao.

Qingdao is a national model city for integrated control over social order.

A City Enjoying Most Preferential Policies in China

Key Industries for Development:

Qingdao is working hard to develop manufacturing industries that conform to the state’s industrial policies, boost its support capacity and extend the industrial chains; develop high-tech industries including electronic information, bio-pharmacy, new materials and clean energy; develop modern service industries such as tourism, finance, modern logistics, real estate, creation, information service, modern commerce and circulation, headquarters economy, intermediary service and convention and exhibition.

Main Preferential Policies:

Qingdao enjoys the status of a province in terms of economic powers. It is one of the regions that enjoy the most preferential policies. Approved by the State Council, Qingdao has established the national economic and technological development zone, the bonded area, the high-tech industrial zone, the export processing zone and the tourism and recreation zone, all of which enjoy relevant state preferential policies.

Preferential Policies for Foreign Trade:

Encourage the export-oriented enterprises to explore international market, and support them to participate in overseas exhibitions, certification, promotion, and inspection tours.

Encourage the export-oriented enterprises to conduct research and development, and support them with inputs required for the research development of new products.

Provide discount loans for the technological transformation of the export-oriented enterprises.

Provide support to the export-oriented enterprises in taking out credit insurance and in responding to anti-dumping complaints.

A City with Full-Range Intermediary Services

Qingdao has many business intermediary service institutions, including 73 chartered accountant firms and 119 law offices.