China’s Shandong province boosts trade with Japan and South Korea

Shandong province, on China’s east coast, continues to improve trade and investment links with nearby South Korea and Japan. Local authorities hope that this densely populated province will play a vital role in the economic development of Northeast Asia.

LAOX, Japan’s largest duty-free retailer, has recently built its first central warehouse in China, located in the Ji’nan area of ​​the Shandong Pilot Free Trade Zone. The warehouse, which handles some 30,000 orders daily, occupies 10,000 square meters and stores merchandise worth more than 12 million dollars. Customers can order online and receive merchandise within 48 hours.

The general manager of the warehouse, Ma Qiang, explained why they built it in Shandong.

“Shandong is close to Japan, and people here trust Japanese products. In addition, the pilot free trade zone provides us with a favorable business climate. It only took us 10 months to get the warehouse up and running after signing the agreement. My Japanese colleagues couldn’t believe how efficient it was.”

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With the preferential policies implemented in the pilot free trade zone, local officials hope the province will become a core area for economic development in Northeast Asia.

The warehouse, which handles some 30,000 daily orders, occupies 10,000 square meters and stores merchandise worth more than 12 million dollars

“Shandong’s cooperation with Japan and South Korea started when China’s economic opening and reform policy was initiated in the late 1970s,” said Zhang Xingcheng, deputy director-general of the Shandong Provincial Department of Commerce. “We have also seen changes in the key areas of cooperation. At first, the focus was on manufacturing, but now Shandong intends to cooperate comprehensively with Japan and South Korea, including in the cultural industry, health, and tourism.”

In 2021, Shandong’s total trade with Japan was 182 billion yuan ($27 billion), up 16.5% from the previous year. Japan has invested some 12.5 billion dollars in nearly 1,400 companies in the province.

Meanwhile, Shandong’s trade with South Korea was nearly $40 billion in 2021, up 30% from the previous year. South Korea has invested nearly $23 billion in some 4,500 companies in the province.

Ma is optimistic about the future of the pilot free trade zone and has been visited by 17 Japanese companies.

“Now we mainly sell beauty makeup, but we want to expand our product categories,” he said. “We want to attract more companies and products from Japan, South Korea and Southeast Asian nations to Shandong, to create a better business environment for the free trade zone and for us.”

In 2021, Shandong’s total trade with Japan was 182 billion yuan ($27 billion), up 16.5% from the previous year.

The Regional Comprehensive Economic Association came into force in China earlier this year. Zhang Xingcheng, deputy director general of the Shandong department of commerce, said the province would take the opportunity to further facilitate cooperation with South Korea and Japan.

Article republished by the Chinese state media CGTN within the framework of an agreement between both parties to share content. Link to original article: https://news.cgtn.com/news/2022-08-26/East-China-s-Shandong-Province-boosts-trade-with-Japan-South-Korea-1cOEzD4QOUE/index.html