A province-wide move toward greater urbanization has been one of the key by-products of rapid economic development throughout Shandong. The eastern coastal province, one of the most prosperous in China, has now embraced the process and identified it as a key part of its growth strategy.
According to Jiang Daming, governor of the province, several city clusters are cohering within the province, driven by geographic proximity and economic compatibility.
Jiang said: "The city clusters that are now emerging in Shandong are coalescing around eight different cities - Jinan, Qingdao, Yantai, Zibo, Weihai, Weifang, Dongying, and Rizhao."
Together, these cities cover an area of land of nearly 74,000 sq km and have a combined population of more than 42.4 million. They account for two thirds of the province`s total gross domestic product (GDP).
Back in 2007, the provincial government released a plan aimed at accelerating the pace of urbanization in the province. The plan, covering the period up to 2020, envisaged the province achieving a 60 percent urbanization rate by 2010 and then stabilizing at 70 percent some 10 years later.
The major cities in Shandong will then be integrated into six distinct industrial zones - a petrochemical and pharmaceutical zone in Dongying and Zibo, an electronic information zone in Jinan, a home appliance industry zone in Qingdao and Rizhao, an automobile industry zone in Yantai and Weihai, a textiles zone in Weifang, and marine industry zones in Rizhao, Qingdao, Weihai, and Yantai.
Ma Chuandong, a researcher for the Shandong Academy of Social Sciences, said: "The rise of the city groups will put Shandong onto the development fast track."
Outlining the future shape of the province, Ma said that the integration of the cities would involve huge investment in infrastructure development, giving not only a considerable boost to local market demand, but also greatly facilitating commercial transactions with businesses outside of the region.
One of the early by-products of this process has been the establishment of rapid rail links between Jinan, Zibo, Weifang, and Qingdao. This now makes it possible to travel between Jinan and Qingdao in under two hours. The province`s rail capability will be further enhanced within three years when an urban light-rail system, connecting Qingdao, Yantai and Weihai, comes on line.
This particular urban cluster also boasts more than 3,000 km of expressways and four international airports, as well as 17 seaports linking 360 ports around the world.
The combined city clusters will ultimately be home to 60 percent of the province`s listed companies and 70 percent of the foreign-funded and export-oriented companies.
More than 120 multinationals now have operations in Qingdao, Yantai and Weihai. Largely focused on the manufacturing sector, the cities are particularly strong in the automotive, electronics, machinery, and shipbuilding fields.