City's Strategic Industries

Qingdao plays a significant role in China's economy and boasts of well developed port facilities and a highly-diversified industrial base, including manufacturing strengths in the locomotives sector and electronics, followed by shipbuilding, information technology, household appliances, petrochemicals and the port industry.

Qingdao is also famous for having some of the best companies in China. Among them, Haier is ranked among the top 5 in the world for home appliances and electronics.

Locomotives Sector
Qingdao rates second to none in the locomotive manufacturing sector. There are currently three large locomotive manufacturing enterprises in the city and a research and development center that leads the country in rail transport innovation. For example, the engine used to power trains on the world's highest rail-line, the Qinghai-Tibet Railway, is made in Qingdao by the Nanche Sifang Locomotive Co. Ltd. By 2010, the annual output of high-end locomotives will reach 1,500 units and bring in sales revenue of over 20 billion RMB.

•  Household Appliances
Qingdao is the largest manufacturing base of household appliances in China, producing more than 25% of all appliances sold in the national household appliance market. By 2005, there were more than 80 enterprises in the field of household appliances, with an industrial output of 54 billion RMB, accounting for one third of the Qingdao's entire industrial output total. Renowned Qingdao-based enterprises in this sector include Haier, Hisense and Aucma.

•  Electronic and Information Technology
The industrial output of the electronic and information technology industry accounts for almost one fourth of the Qingdao's total industrial output, with sales revenue of 44 billion RMB. In September 2004, Qingdao was approved as a "National Electronic and Information Technology Industrial Base". In May 2005, the Qingdao Hi-tech Development Zone and the Qingdao Economic and Technical Development Zone were awarded the titles of "National Telecommunication Industrial Park" and "National Household Appliances Industrial Park" respectively.

•  Shipbuilding
Qingdao is an important international trade port and a sea transportation hub on the western edge of the Pacific Rim. Many foreign shipping enterprises and scientific research institutions have settled in Qingdao and there are 15 shipbuilding firms. In 2005, the shipbuilding sector's industrial output reached 2.2 billion RMB and the industry employed over 7,600 people. Ships built in Qingdao have been exported to more than 100 countries and regions, all over the globe. The Qingdao Beihai Shipbuilding Heavy Industry Co., Ltd., the Qingdao Shipyard and the Qingdao Lingshan Shipbuilding Co., Ltd. are the three largest shipyards in Qingdao and are mostly concentrated in the Jiaonan and Shinan Districts.

•  Port
Qingdao's port industry consists of more than 620 enterprises in the fields of container manufacturing and port services. In 2005, port operating revenue reached 16.8 billion RMB and there were over 3,600 employees. The Qingdao port industry is now focusing on improving its capability and capacity for international and inland transfer systems and has expanded its transfer business in cooperation with large international shipping lines.

•  Petrochemicals
The Qingdao petrochemical industry involves more than 413 enterprises, including SINOPEC, the Doublestar Group and the Haiwan Group and employs over 122,300 people, with an industrial output reaching 45.7 billion RMB. Due to rapid growth and modernization in this sector, many foreign petrochemical companies have begun to cooperate with Qingdao enterprises in large-scale oil refining projects, such as KP Chemical Corporation, the Rhodia Group and LG Activated Carbon Co., Ltd.

•  Economic Contribution Ratios by Sector
In 2006, the economic contribution ratio of the primary industries, which include agriculture, forestry, animal husbandry and the fisheries, represented 5.7% of GDP; the economic contribution ratio of the secondary and value-added industries and construction represented 52.3%; while the economic contribution ratio of the tertiary sector represented 42.0%.

Qingdao's value added industries realized 152.75 RMB billion in revenue for 2006, of which enterprises with foreign investment and/or investment from Hong Kong, Macao and Taiwan realized 51.67 billion RMB, accounting for about one third of the total amount.