Yantai, an international port city on the eastern coastline of Shandong province, is renowned throughout China for the success of its economic zones.

Back in 1984, the city was one of China's first coastal cities to embrace the opening up policy. The city now has 14 economic zones - 12 at a provincial level and two at a State level, the Yantai Economic and Technological Development Zone and the Yantai Bonded Port.

Assessing the zones' significance, Sun Yongchun, Party chief of the Yantai municipal committee said: "By the end of 2008, the gross industrial output value of the economic zones accounted for 47.8 percent of Yantai's total. Their exports and imports represented 83.8 percent of the city's total, whilst foreign investment in the zones accounted for 77.8 percent of the overall figure."

Yantai is now one of the fastest growing cities in the country. In 2008, the city's output value increased by 13.6 percent year-on-year to 343.42 billion yuan. It was among the top 20 Chinese cities and ranked No. 2 in the province in terms of total output.

According to a report released by the Chinese Academy of Social Sciences in April, eight Chinese cities are now included in the top 10 of the world's fastest-growing cities, with Yantai numbering among them. It was also selected as one of the 60 representative cities for excellence in urban development on the occasion of the 60th anniversary of New China's founding.

Yantai is now one of the most attractive destinations for oversea investment, with its economic zones and industrial parks as the major driving force behind this boom. According to local statistics, 50 of the world's top 500 multinational corporations - including LG, GM, Henkel, NEC, Toshiba, Hitachi and Mitsui - have opened operations in the zones, making the city a truly global manufacturing center,

At the same time, local businesses have also continued to grow. Hongfutai Precision Electrons (Yantai) Co Ltd, Langchao LG, General Motor (Dongyue) Auto Company, Doosan Infracore and Yantai Dongfang Stainless Steel Industry Co Ltd are now all key players in the Yantai economy.

The Foxconn Technology Group (Yantai) is a typical example of the kind of investment project that has flourished in the Yantai economic development zone. Despite the worldwide economic crisis, the company generated more than 6 billion yuan in business income in 2008 and became the province's largest foreign trader.

With a robust expansion momentum, the city has launched a series of hi-tech projects including a number relating to gaming devices, mobile phones and LEDs. It expects output from this sector to surpass 100 billion yuan this year.

With its five key industries - automotive, cell phones, computers, shipbuilding and equipment and machinery manufacturing, Yantai has grown into a key national production center across these sectors.

Yantai ranks eighth on the list of the top 10 national export-oriented processing zones. The city's Zhaoyuan Development Zone is among the top 10 of the 145 provincial-level development zones in the province. It was also awarded the accolade of "scientific development park", together with another four development zones - Longkou, Penglai, Laizhou and Laishan.

New development strategies, such as marine economies and high-end industries on the Shangdong Peninsula, continue to bring fresh opportunities to the city. It is now aiming to build a scientific and technological CBD and a new city to take advantage of the coastal ecosystem.

(China Daily 12/03/2009 page24)