During a press conference held on October 17, 2023, Vice Governor of Qingdao Customs, Shi Yong, shared insights regarding Shandong Province’s foreign trade developments in the first three quarters of 2024. According to Shi, the structure of imports and exports in the region has undergone continuous optimization, with the export values of high-energy and high-emission products decreasing by 1% compared to the previous year. Exports of steel, ceramic products for construction and sanitation, fertilizers, and coke saw declines of 2.6%, 22.6%, 27.1%, and 23%, respectively. However, products signifying a trend towards green development, labeled as the “new three items,” experienced a remarkable 23.1% growth in exports, reaching 8.03 billion yuan. If this trend continues, exports are projected to surpass 10 billion yuan by the end of the year.
Shi noted that demand for imports is being stimulated by the upgrading of equipment and the development of high-tech industries within Shandong. In the first three quarters, the import value of semiconductor manufacturing equipment reached 13.66 billion yuan, marking a 27.4% increase year-on-year. Additionally, general machinery imports stood at 9.51 billion yuan, up by 21.2%. The advancements in cloud computing and artificial intelligence also propelled the import of related products, with imports of automatic data processing equipment and components rising by 14.6%. Notably, the value of imported central processing unit components surged by 12 times, while memory components saw a growth of 66.2%.
In terms of bulk commodity imports, there has been a shift in the dynamics, with oil and metal ores showing a contrasting trend. While crude oil and refined oil imports decreased, the import values for metal ores, particularly iron ore, have slightly increased, with copper, aluminum, and nickel ores all experiencing double-digit growth.
Shandong’s export of electromechanical products amounted to 711.7 billion yuan, accounting for 46.8% of total exports, thereby supporting nearly half of the province’s export volume. Shi mentioned that there is a significant shift towards high-end, green, and intelligent electromechanical products, with the shipbuilding industry witnessing a record number of new and outstanding orders, indicating a robust growth outlook for exports. Green and low-carbon products, including electric vehicles, are also rapidly entering overseas markets, leveraging opportunities presented by initiatives like the Belt and Road. Electromechanical products such as automotive parts, home appliances, construction and agricultural machinery, and rail transport equipment have established a stable position in international markets. As export orders are fulfilled, electromechanical exports are expected to play an increasingly vital role in Shandong’s overall export growth.
Moreover, in the first three quarters, exports of major high-end equipment from Shandong increased by 32.5% year-on-year to 70.39 billion yuan, outpacing the regional average. Key sectors including shipbuilding, engineering machinery, agricultural machinery, and aerospace equipment saw exemplary growth rates of 135.4%, 15.4%, 24%, and 170.1%, respectively.
Jiang Ming, Deputy Director of Jinan Customs, highlighted that private enterprises represent the largest segment of Shandong’s foreign trade. In the third quarter, domestically owned brands accounted for over half of the province’s exports in sectors such as automotive tires and key electronic components, reflecting a shift from simply exporting products to also promoting brands internationally.
The main trading partners in ASEAN for Shandong are Malaysia, Vietnam, and Singapore, together comprising 70% of the province’s trade with the region. Jiang noted that in the third quarter, 73.4% of rubber, 55.3% of crude oil, 34.7% of refined oil, and 26.7% of coal imports originated from ASEAN countries. Additionally, there has been a substantial increase in imports of specialty agricultural products from this region, with imports of coffee, sugar cane, and nuts more than doubling year-on-year.
Overall, Shandong’s goods trade saw stable growth in the first three quarters, achieving an import and export value of 2.48 trillion yuan, a 3% increase from last year. Exports rose to 1.52 trillion yuan, reflecting a 6.4% increase, while imports totaled 963.06 billion yuan, dropping by 1.9%.
