City opens up economy to the world

By Chen Meiling in Jinan | (China Daily )| Updated : 2019-09-23

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Jinan, capital of East China's Shandong province, showcased its industrial and economic development to overseas media representatives who took part in the three-day Discover Jinan tour earlier this month.

The city of Jinan is developing an open economy and cultivating new engines of growth via its China (Shandong) Pilot Free Trade Zone, which was launched in late August.

With an area of over 10,000 square kilometers and a population of 10 million, the GDP of Jinan hit 886.2 billion yuan ($125.4 billion) in 2018 while its per capita GDP reached 101,900 yuan, making it a member of Asia's top 50 cities, according to a report from Royal Society, a research institute in the United Kingdom.

Sun Shutao, mayor of Jinan, said the city is working to optimize its regulations and the way it operates amid deepening economic globalization.

Policies beneficial to overseas capital such as cutting negative lists, streamlining customs clearance and encouraging foreign ownership of companies in more sectors are on the way to construct an open, equal and efficient business environment, according to Sun.

"Jinan will open itself wider to investment, finance, education and medical fields, and allow more foreign-owned or foreign-funded enterprises to operate or invest in more fields so as to provide a more open and inclusive market for companies," Sun said.

For example, some 53 medical groups from home and abroad have registered with the Jinan International Center for Medical Sciences. By 2030, the center is expected to have 10 internationally renowned medical institutions and 100 key industrial projects. By that time it is anticipated that the medical center will receive 10 million visits annually, with an annual output value up to 100 billion yuan.

As a key transport junction of the Belt and Road Initiative, Jinan is playing a bigger role in global trade in part due to its strengths in intelligent manufacturing, transportation and logistics.

The Qilu China Railway Express, operated by Shandong High-Speed Logistics Group, is a major contributor to regional opening-up.

The train travels from Shandong province to countries in Europe, Central Asia and Southeast Asia, including Russia, Belarus, Poland, Vietnam and Thailand, according to Liu Ying, deputy general manager of the company.

The shorter transportation time, higher level of security and lower logistics cost compared with maritime and air transport have created new opportunities, she said, adding the express has made 88.3 trips per month on average in 2019, up 215.2 percent year-on-year.

Trains from Jinan have delivered 102,300 metric tons of goods this year, with a value of $254 million. The category of goods has been expanded from daily necessities, apparel and small goods, to automobiles, home appliances, machinery equipment, laser-engraving machines and auto parts.

Nhem Sophal, a senior reporter from Rasmei Kampuchea Daily Newspaper in Cambodia, a participant in the media trip, showed interest in the train.

"Before, I never knew that a freight train can go to so many countries," he said. "It may be one of the best ways to increase China's economy because it can save the cost for import and export."

Monthian Xayasith, deputy editor-in-chief of Champamai Newspaper in Laos, was impressed by China National Heavy Duty Truck Group, also known as Sinotruk, the nation's largest producer and exporter for heavy duty trucks, based in Jinan.

"It is a very big company, which exports the most heavy-duty trucks in China and covers more than 100 countries and regions," he said.

The 780-meter-long production line produces 100 vehicles every day, according to the company.

Zhang Yanling, vice-president of the international department of the company, said it sold 303,000 vehicles last year, making 65.9 billion yuan in revenue.

The Jinan-based Jier Machine-Tool Group, one of the top three CNC punching machine manufacturers in the world, showcased how over 82 years it has managed to innovate and globalize. When first produced, more than 600 of the company's products were the first of their kind in China. Its large CNC punching machine occupies 85 percent of the market share in China and is sold to more 60 countries and regions. It has provided high-end automatic stamping equipment to leading global auto brands such as General Motors, Ford and Volkswagen. Its operations cover 13 countries.

Jinan has developed its intelligent manufacturing and high-end equipment industries in recent years, whose revenues surpassed 300 billion yuan in 2018, data from the local government showed.