Focus on Qingdao, China
Table of Contents
- Business Environment
- Major Stakeholders
- Canadian Advantage
- Fast Facts
- Canadian Trade Commissioner Service Coordinates
Qingdao, historically known as Tsingtao, lies in the south of Shandong Peninsula while looks out to the Yellow Sea. It faces the Republic of Korea and Japan across the sea in the east; and is located in the middle of Beijing and Shanghai.Its geographic location makes Qingdao the 7th largest port in the world and the second largest port for foreign trade in China. In addition to its seaport, the city is a naval base, industrial centre and the hometown of the world-famous Tsingtao Beer. It is administered at the sub-provincial level.
Qing in Chinese means "green" or "lush", while dao means "island". Surrounded by sea and mountains, Qingdao is noted for its beautiful sceneries:the magnificent coastline, the fairyland Laoshan Mountain, the urban landscape dotted with red roofs and green trees against the blue sea and azure sky, the diverse architectures predominantly in European style, and the former residences of China’s contemporary famous writers and scholars. Cited as China’s “capital of sailing”and Asia’s best nautical city, Qingdao hosted the sailing events of the 29th Olympic Games and the 13th Paralympic Games in 2008.
Qingdao enjoys unrivalled economic advantages that include a fair market order, an efficient government system, guaranteed social securities, and world-class infrastructures - making it one of the most attractive destinations for foreign investments. In an effort to reduce business costs and increase efficiency for corporate establishment, Qingdao is the first Chinese city to introduce government working systems such as “lump-sum declaration”, “one-stop service” and “one-stop examination and approval”.
As one of China’s most economically dynamic cities, Qingdao is the best commercial cities in China with the“Award for Entrepreneur Satisfaction”, and a “gold-medal city” for its investment environment, a top ten innovative city in China and a top ten most attractive city in the eyes of foreign talents.
Seven sectors are the pillar industries of Qingdao: household electric appliances and electronics, petrochemicals, automobiles and locomotives, ship and ocean engineering, textile and clothing, foods and beverages, and machinery and steel. A number of enterprises and brands, such as Tsingtao Beer, Haier, Hisense and Doublestar etc, has been nurtured here, which makes the city as the “capital of Chinese brands” and “top ten brand cities in China”.
In 2012, Qingdao’s GDP reached RMB730 billion, up 10.6% over the previous year. The total value of import and export trade was US$73.2 billion and a total of 111 of the world top 500 enterprises had invested in 219 projects in Qingdao.
Special Development Zones
Qingdao has seven national development zones, and nine provincial development zones that enjoy relevant state preferential policies including:
- Qingdao Economic & Technological Development Zones
- Qingdao Western Coast Export Processing Zone
- Qingdao High-Tech Industrial Development Zone
- Qingdao Bonded Area
- Qingdao Experiment Zone for Cross-strait Agricultural Cooperation
- Qingdao Export Processing Zone
- Qingdao Software Park
- National Software and Information Service Industry Model Base(Qingdao)
- Qingdao Sino-German Ecopark
- Jiaozhou Economic-Technological Development Zone
- Provincial-level Economic and Technological Development Zones
Canada has a number of bilateral trade and investment policy instruments in place that are helping to facilitate and support Canadian commercial engagement in the region including:
- 2005 Air Services Agreement
- 2007 Canada-China Agreement for Scientific and Technological Cooperation
- 2008 Memorandum of Understanding on Infrastructure
- 2009 Memorandum of Understanding with the National Development and Reform Commission (NDRC) on Cooperation in Trade Logistics
- 2012 Foreign Investment Promotion and Protection Agreement (FIPA)
Qingdao is home to many famous Chinese enterprises and well known trademarks, including:
- Haier Group
- Hisense Group
- Qingdao Iron and Steel Group
- Tsingtao Brewery Co. Ltd.
- Etsong Group
- Double Star Group
- MESNEC Co.
Many of the world’s top 500 enterprises and well-known multinational companies have also established their presence in Qingdao, including Wal-Mart, Jusco, Carrefour, METRO, Watsons, and Itokin, Saint-Gobain and Auchan.
Qingdao has a thriving financial sector with many foreign financial institutions operating in the region, including:
- HSBC, Yamaguchi Bank Ltd. Of Japan, Korean International Bank, Industrial Bank of Korea, Standard Chartered Bank, Overseas Chinese Banking Corp. Ltd. Of Singapore, Bank of East Asia Ltd., Bank of China Hong Kong, Shinhan Bank, Busan Bank, Deutsche Bank.
- Haier New York Life, Heng An Standard Life, AVIVA-COFCO, Huatai Insurance.
The Canadian Advantage
Qingdao’s industrial ambitions in being the regional shipping, logistics, financial services, and high-tech industrial centres match well with Canadian capabilities and strengths.
- Financial services: banking, insurance.
- Other services: shipping, logistics, port management.
- R&D partnerships in clean energy technologies, new materials, and bio-pharmaceuticals.
- Trading: maple syrup, wine, seafood, pulses, wood pulp, lumber, ore etc
- Education: recruiting local students to study in Canada; setting up joint programs
- Ocean technologies: ship building, marine research equipment and devices
- New material industry: new ocean engineering materials, new polymers, new photoelectric and electronic materials and new metal materials, etc.
- Bio-industry: oceanic biomedicine, bio-agriculture and biologics, etc.
- Advanced equipment manufacturing industry: high-speed track traffic vehicles, marine equipment manufacturing, smart equipment manufacturing and aeronautical facility manufacturing, etc.
- Clean energy: new environment-friendly equipment, energy-saving products and venous industry, wind, solar, biomass, ocean and geothermal energy, etc; Lithium Ion Battery used as the driving force, entire new energy vehicles and key support products
Canadian commercial success in the region
- The Bombardier Sifang Power (Qingdao) Transportation Ltd. (BSP), a Sino- Canadian railcar joint venture became operational in March 2001.
- Canada is one of the main suppliers of barley to the Tsingtao Brewery
- Canada exports pea to Qingdao to make vermicelli and pea protein
- A memorandum of understanding has been signed between Westport Innovations Inc. and Qingdao Sino-Canada S&T Park Co. Ltd. to work together on establishing a business plan to develop, market, and sell gaseous-fuelled vehicles and infrastructure solutions in China.
- Qingdao Novia Polymer Co., Ltd was established in 2006. It is located at Jiaozhou Economic Development Zone in Qingdao. It belongs to the Canadian Group InterWrap, and has registered capital of USD 12 million. Currently, 600 employees are working at the Qingdao facility. The company is a manufacturer of coated fabrics, PE/PP woven products, roofing products and other plastic products, and has a unique production technology.
- Labrie Enviroquip Group set up a sourcing office in Qingdao to outsource components manufactured in China.
- Western Forest Products Inc. set up its China Office in Qingdao to maintain clients and develop new clients in China
- Dan-D Foods Ltd.established its sourcing office in Qingdao to outsource raw materials from around China
- Superior Radiant Products Inc established its China office in Qingdao to assemble and market their infra-red heaters
- Local marine research institutes in Qingdao bought a number of marine research equipments and devices from Canada
- Manulife-Sinochem Life Insurance Co., Ltd. has a branch in Qingdao to provide insurance services
- Delmar International Inc.has its China Headquarters in Qingdao and a branch office in the city to provide logistics, freight forwarding services.
Qingdao will be the site of one of Canada’s newest trade offices abroad, slated to open in 2009. The office is an indication of the increasing attention Canada is paying to North China and will further support Canadian interests in the region.
For More Information
- Qingdao Municipal Overseas Investment Promotion Bureau
- Qingdao Government Affairs Online
- Ministry of Commerce of the People's Republic of China:
Special Commissioner's Office in Qindao (Chinese only)
- The Canadian Trade Commissioner Service
Area: 11,282 km²(4,356 mi.²)
Population: 9.05 million (2015)
Density: 773 per km² (2,002/ mi.²)
Language(s): Mandarin, Qingdao dialect
GDP(2014): 179.5 billion CAD
Major Industries: Electronics and household appliances, shipbuilding, automotives, petrochemicals, chemicals and fiber, textile and garment, machinery, bio-pharmaceutical, rubber, shipping and logistics.
Main Export Destination: USA, EU, Japan, Republic of Korea, Hong Kong, Australia, Taiwan.
Main Import Sources: Republic of Korea, Japan, Hong Kong, Canada.
Major Exports: Garment, electric and electronic products, machinery and equipment, textiles, footwear, metal products, aquatic products, chemicals, transport tools, computer and communication technology, tyre.
Major Imports: Electric and electronic products, minerals, machinery and equipment, aquatic products, textiles, steel and steel products, chemicals, finished oil products, rubber and rubber products.
Export Volume: USD 45.8 billion (2014)
Import Volume: USD 34.1 billion (2014)
Top 7 Investors: Hong Kong, Republic of Korea, Japan, USA, Virgin Islands, Singapore, Taiwan.
Friendly Co-operative Cities in Canada with Qingdao:
Edmonton starting from 2001.05.18
Richmond starting from 2008.04.22
Mayor: Mr. Zhang Xinqi
CPC Secretariat: Mr. Li Qun
Administrative divisions: 6 Urban Districts, 4 County-level Cities
Canadian Trade Commissioner Service Coordinates
Canadian Trade Office in Qingdao
Qingdao Shangri-la Centre Office Tower
Unit 2608, 26th Floor, No. 9
Xiang Gang Zhong Road, Shinan District
Qingdao, 266071, China
Tel.: (011-86-10) 5139-4000
Fax: (011-86-10) 5139-4450
19 Dongzhimenwai Dajie,
Chao Yang District
Beijing 100600, People’s Republic of China
Tel.: (011-86-10) 5139-4000
Fax: (011-86-10) 5139-4450
Room 1705, Metropolitan Tower
Wu Yi Lu, Yu Zhong District
Chongqing 400010, People’s Republic of China
Tel.: (011-86-23) 6373-8007
Fax: (011-86-23) 6373-8026
China Hotel Office Tower, Suite 801
Liu Hua Lu, Guangzhou
Guangdong 510015, People’s Republic of China
Tel.: (011-86-20) 8666-0569
Fax: (011-86-20) 8668-6093
14th Floor, One Exchange Square
Central, Hong Kong SAR, People’s Republic of China
P.O. Box 11142 Central
Hong Kong SAR, China
Tel.: (011-85-2) 2847-7414
Fax: (011-85-2) 2847-7441
American International Centre
West Tower, Suite 604,
1376 Nanjing Xi Lu
Shanghai 200040, People’s Republic of China
Tel.: (011-86-21) 6279-8400
Fax: (011-86-21) 6279-7456
 The Canadian Trade Office in Qingdao enhances the coverage provided by the Canadian Embassy in Beijing, which continues to include Qingdao in its territory of responsibility.
The Government of Canada has prepared this report based on primary and secondary sources of information. Readers should take note that the Government of Canada does not guarantee the accuracy of any of the information contained in this report, nor does it necessarily endorse the organizations listed herein. Readers should independently verify the accuracy and reliability of the information.
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