Jinan - Economy

Economy

With the shift of the Yellow River to a new bed right to the north of Jinan (in 1852) and the establishment of a railroad hub, the city became a major market for agricultural products from the productive farming regions to the north. Following the trade in agricultural goods, the city developed a textile and clothing industry, flour mills, oil presses, as well as factories producing paper, cement, and matches. In the 1950s, large iron and steel works as well as chemical factories were established around Jinan. The large metal works produce pig iron, ingot steel, as well as finished steel. In 2008, steel manufacturing was restructured with the formation of the Shandong Iron and Steel Group. In the 1970s, factories for the production of trucks and construction vehicles (Sinotruk) were added.

Jinan has a pool of high-quality labor resources. There are 18 universities and colleges in the city where more than 200,000 students are studying. Among the 200+ research institutes in the city, 10 are national laboratories.

The focus on technology intensive industries has transformed Jinan from a city supported by heavy industry and textiles to a city with more diverse industrial structure. Information Technology, transportation tools, home appliances, and bio-engineered products, among others, have become important components of the area's industry. Jinan's IT-related economic output was ranked to be in the fourth place nationally in 2004.

Industrial zones include:

• Jinan High-tech Industrial Development Zone

Founded in 1991, the Jinan High-tech Industrial Development zone was one of the first of its kind approved by the State Council. The zone is located to the east of the city and covers a total planning area of 83 square kilometers that is divided into a central area covering 33 square kilometers, an export processing district of 10 square kilometers, and an eastern extension area of 40 square kilometers. Since its foundation, the Jinan High-tech Industrial Development Zone has attracted enterprises as LG, Panasonic, Volvo, and Sanyo. In 2000, it joined the world science and technology association and set up a China-Ukraine High-tech Cooperation Park. The Qilu Software Park became the sister park of Bangalore park of India.

• Jinan Export Processing Zone

The export processing zone is located in the eastern suburbs of Jinan, to the east of the Jinan High-tech Industrial Development Zone and to the north of the Jiwang highway. The distances to the Jiqing Highway and the Jinan Airport are 9 and 18 km respectively.

• Liaocheng Economic Development Zone

The China National Heavy Duty Truck Group (Sinotruk) has its headquarters in the city.