Transnational corporations represented by the Fortune Global 500 companies are important driving forces for economic globalization, scientific and technological progress and industrial transformation, all of which play an important role in promoting the transformation and upgrading of local industrial chain, according to Shandong authorities.

In 2009, China National Heavy Duty Truck Group, also known as Sinotruk, a heavy duty truck producer based in Jinan, capital of Shandong, established a long-term partnership with German truck maker MAN, from whom the Chinese company obtained a range of advanced technologies.

In January 2013, the Sitrak series of heavy trucks, jointly developed by Sinotruk and MAN, were launched.

The production line for the Sitrak series of heavy trucks [Photo provided to chinadaily.com.cn]

As a result of the cooperation, Sinotruk has introduced advanced technologies and manufacturing processes. It has also gained a better understanding about standards and quality management, said a senior general quality engineer from Sinotruk.

ERGO Group, a subsidiary of Munich RE and one of the major insurance companies in Germany and Europe, established ERGO China Life, a life insurance joint venture with Shandong State-owned Asset Investment Holdings Co, in 2013.

This was the first regional headquarters of the Fortune Global 500 companies to settle in Shandong, marking a milestone in the cooperative ties between Shandong and Germany in the financial industry.

In June this year, ERGO signed a shareholder's agreement and capital increase agreement to make a strategic investment in Taishan Property & Casualty Insurance Co, a Shandong-based nationwide property and casualty insurer in China.

According to ERGO, the deal marks a significant step by the German insurer to deepen and expand its services in the Chinese market. After completing the transaction, ERGO will obtain 24.9 percent equity interests of Taishan Insurance via its subsidiary ERGO Versicherung AG.

This deal will also greatly improve the speed and quality of the transformation of the local financial industry, said a Shandong official.