Shandong's economy maintained steady and positive momentum, with a regional GDP of 9.86 trillion yuan ($1.35 trillion) in 2024. This marked a 5.7 percent year-on-year growth rate that exceeded the national average by 0.7 percentage points, as highlighted in the recent Shandong provincial government work report.

The report states that Shandong's key indicators in Shandong, such as industrial output, investment, and consumption, all outperformed national averages. As a significant industrial center and strategic economic hub in northern China, Shandong's industrial sector showed strong growth, with the province's industrial added value for enterprises above designated size growing by 8.3 percent year-on-year.

Shandong is now home to six national advanced manufacturing clusters and boasts 235 national manufacturing champions, the highest number in the country.

Last year, the province's total import and export volume reached 3.38 trillion yuan, with exports surpassing 2 trillion yuan for the first time. Foreign investment utilization reached $11.81 billion, ranking fifth nationwide.

"The achievements have laid a solid foundation for this year's economic and social development, bolstering our confidence to take the lead and shoulder major responsibilities," said Liu Dejun, director of the strategic planning institute at the Shandong Academy of Macroeconomic Research.

Liu emphasized that solid industrial foundations, coupled with high-end, intelligent, green, and clustered development, are driving the transformation and upgrading of Shandong's traditional industries.

Innovation-driven development

The report also noted that Shandong has been formulating region-specific policies to nurture new forms of productivity, driving deep integration across industry, innovation, education, and talent. This year, the province aims to further integrate technological and industrial innovation to accelerate the development of a modern industrial system.

Xing Lecheng, dean of the Shandong Academy of Inclusive Finance Research, emphasized the enduring momentum that the virtuous cycle between technological and industrial innovation can provide for Shandong's economic growth.

Recent efforts in Shandong have supported enterprises in boosting high-quality technological innovation. For example, on Jan 10, the world's first carbon fiber subway train, developed by CRRC Qingdao Sifang Co Ltd, began commercial operations on Qingdao Metro Line 1.

"The key to the deep integration of technological and industrial innovation lies in leveraging the central role of enterprises in innovation," Xing noted.