Jinan is the economic and financial center of the Shandong province. It is also a sub-provincial level city and an open coastal city approved by the State Council. Jinan connects both north and south industry belts from Yangtze River Delta to Bohai Bay, as well as bridging the east and the west from the Central Development Area to the Eastern Developed Area.
Powerful economy city: Jinan is the capital city of Shandong, one of nine financial centers in China, one of Top 50 powerful economic strength cities. The annual GDP is about 1/10 of amount of Shandong.
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.
There are already a lot of european companies, which invest or set up factories in Jinan, and developing very well: