Yantai is one of many cities in Shandong province seeking to attract more Fortune 500 companies to build the region into a foreign trade hub.

"Yantai has established strong relationships with many world-leading companies. There are almost 100 Fortune 500 companies already in Yantai," said Zhang Yongxia, mayor of Yantai.

Loctite was the first Fortune 500 listed company to set up in Yantai, establishing a joint venture named Henke Loctite China Co with the Yantai Machinery Research Institute in 1987.

Zhang said Yantai has successfully attracted 97 Fortune 500 companies during the past three decades, including Mitsubishi, LG, General Motor (GM) and Total. She said those businesses invested $2.5 billion of foreign capital in 138 projects.

Foreign companies are mainly engaged in areas such as automotive and components manufacturing, ship building, business services, electronic information technology, new energy and culture development.

Zhang said the GM production base in Yantai is one of GM's largest in China, with total investment having reached $3.5 billion. The production base attracted more than 200 supporting companies to Yantai.

"The presence of these leading companies not only brings economic benefits and capital to Yantai, but also brings advanced management and production experience," Zhang said. "It will boost awareness of Yantai on the world stage".

Zhang said Yantai would continue to support key foreign invested projects launched by companies such as China Resources Co, Heraeus Group and Jurong International in the coming years.

Going global

Opening-up has been the key development principle of Yantai in recent years.

Figures from the Yantai Bureau of Commerce show that Yantai's incoming overseas capital in place reached $1.92 billion and total foreign trade volume was $49.39 billion in 2015. Yantai contributed 20 percent to the overall foreign trade volume in Shandong in 2015.

The latest figures from the Yantai government show there are more than 3,000 companies from over 90 countries and regions in the city.

Those companies have brought in 13,500 investment projects, some of which play a significant role in the country.

For instance, Foxconn's largest console production base in the world is in Yantai. Langchao LG Digital Mobile Communications Co has the largest CDMA mobile phone manufacturing base in China located in the city, and CIMC Raffles has the largest semi-submersible platform manufacturer in the nation.

Companies in Yantai have also made breakthroughs in overseas expansion in the past few years, during which 274 domestic companies have invested in 428 projects in 66 countries and regions. The total investment is $3.36 billion. The Sino-Russia Tomsk Wood Trading Cooperation Zone in Russia is the second national-level Chinese-invested trade zone with investment from Shandong companies.

Yantai has also built many economic parks in the city to support its foreign trade.

The Yantai Economic and Technological Development Zone ranked sixth among 219 national-level economic zones China in a recent comprehensive development evaluation. The trading volume of the Yantai Bonded Zone ranked first among 14 bonded zones in China.

The China-South Korea (Yantai)Industrial Park went into operation in 2015.

"The industrial park is a free trade zone that was jointly built by China and South Korea at the suggestions of President Xi Jinping and President Park Geun-hye. The zone will strengthen cooperation between China and South Korea," Zhang said.

Zhang said many companies showed great interest in investing in the China-South Korea Industrial Park. "Many South Korean companies in healthcare, commercial logistics, cultural and aged care are keen to run businesses in Yantai. Some existing South Korea investors have confirmed their expansion plans," she said.

In 2015, Yantai's exports to South Korea were valued at $11.08 billion, accounting for one-third of those from Shandong.

Officials said that investment projects initiated by South Korea companies such as Hyundai Motor Co and Hyundai Heavy Industries Co are progressing rapidly.

The construction of a Sino-South Korea New Energy Vehicle Industrial Park, Sino-South Korea Medical Equipment Industrial Park and South Korea Goods Trading Centers are also advancing well.

tangzhihao@chinadaily.com.cn

(China Daily European Weekly 03/25/2016 page13)