Shandong is "rushing" again. On July 30, the Shandong Provincial Government issued the "Several Policies and Measures on Further Promoting the Steady and Improving of the Economy, and Improving the Quality of the Economy". This is the third batch of policies for Shandong to "promote economic consolidation and improvement and accelerate green, low-carbon and high-quality development" in 2024.

Source: Shandong Provincial People's Government

Shandong's rapid and intensive introduction of policies is somewhat unexpected. On July 25, Shandong released a brilliant semi-annual report - the GDP of Shandong Province reached 4,667.7 billion yuan in the first half of the year, a year-on-year increase of 5.8% at constant prices. 0.8 percentage points higher than the national average. Among the major economic provinces, this growth rate is tied with Jiangsu for the first place.

However, from a national point of view, it is reasonable for Shandong to introduce policies at this point in time. China's GDP grew by 5% year-on-year in the first half of the year, including 4.7% in the second quarter, according to the previously released semi-annual report on China's economy. From a regional perspective, the GDP growth rate of 23 provinces in the first half of the year was lower than the annual GDP growth target set at the beginning of the year. In order for China's economy to achieve its annual growth target of about 5 percent, it is bound to continue to exert its strength in the second half of the year. The meeting of the Political Bureau of the CPC Central Committee held on July 30 specifically proposed that "we must continue to play the role of a major economic province as a major pillar."

These 40 new policies are directly related to Shandong's economic development in the second half of the year. Shandong is the largest economic province in northern China, and its GDP ranks among the top three in the country. It is our duty to take the lead. Dismantling Shandong's economic growth trend, we can see some clear changes. For example, the change of new and old kinetic energy, the change of economic structure, and the change of investment direction. What is even more rare is that, judging from the economic growth data in recent years, in this change, Shandong's economy has always played an upward force for the national economic market.

How can Shandong pick up the beams?

"The number one project" takes the lead

On July 30, the Shandong Provincial Government issued a total of 40 policies and measures on further promoting the steady improvement of the economy and improving the quality of the economy. The first article of the "policy measures" is to "promote stable industrial production and increase efficiency".

It's not hard to see why.

Counting the economic indicators of Shandong Province in the first half of the year, the primary industry increased by 3.8% year-on-year; the secondary industry grew by 7.1%; The tertiary sector grew by 5.2 percent. The growth rate of Shandong's secondary industry is 1.3 percentage points higher than the national average, and it is on a par with Jiangsu among the top four provinces in the national economy. This is precisely the intention and result of Shandong's insistence on taking the industrial economy as the "number one project." Shandong is given the heavy burden of "picking up the pillars" in the country, and the number of industries that provoke the pillars of Shandong's economy internally.

However, today's Shandong industry is not the same concept as in the past. Shandong has a strong industrial foundation and a complete range of categories. However, from the perspective of industrial structure, in the past, Shandong's traditional industries such as chemicals, iron and steel, aluminum, papermaking, and tires accounted for as much as 70 percent, of which heavy chemical industries accounted for 70 percent of the traditional industries. From the perspective of product income level, in the past, most of the light industry, chemical industry, machinery, textile, and metallurgy in Shandong were resource-based industries, energy raw materials accounted for more than 40%, and most of the products were primary industrial products with rough processing and low scientific and technological content. Therefore, this kind of "heavyness" also made Shandong once appear "faltering" and "lacking stamina".

Since 2018, Shandong has launched two reforms in the same vein - the conversion of old and new kinetic energy and green, low-carbon and high-quality development.

As a traditional industrial province, whether it is the transformation to new kinetic energy or the development of new quality productivity, Shandong is first faced with the topic of how to deal with the relationship between the old and new industries and the two kinetic energy.

Shandong has not neglected or abandoned traditional industries. Lin Wu, secretary of the Shandong Provincial Party Committee, has repeatedly said that it is necessary to "continue to use high-tech and digital technology to transform and upgrade traditional industries", and to "strengthen transformation and upgrading, roll the implementation of '10,000 enterprise transformation' and '10,000 technological transformation', and promote the rejuvenation of traditional industries".

For example, the textile industry is a typical traditional industry, but it is a traditional advantageous industry in Shandong. In the reform, Shandong specially added it to the "top ten" industrial clusters, and focused on development through technological transformation and innovation.

In Qingdao, Jifa Group has developed the "key technology and equipment for the industrialization of supercritical CO2 anhydrous dyeing" - no drop of water is used for dyeing, and "zero" sewage is discharged, which has brought subversive changes to the enterprise and even the industry.

Source: The Economic Observer

The three-level governments of Shandong Province and the municipal government have given echelon support in terms of funds: during the small test, the Qingdao Think Tank Fund invested 8 million yuan in a timely manner; During the pilot test, the major special project of Qingdao Jimo District was given 5 million yuan of financial support; In the critical industrialization stage, Shandong Province has given 11.5 million yuan of special funds for major projects.

At present, the first industrialized production line of anhydrous dyeing with an annual output of 1,000 tons has been officially put into operation. Yang Weidong, chairman of Jifa Group, told the Economic Observer that through continuous change and innovation, textile enterprises can become high-tech enterprises, and the textile industry can also become a sunrise industry.

Investing in technological transformation has also enabled enterprises to effectively improve their efficiency and effectiveness. Wang Chengbin, deputy general manager of Luyuan Electric Vehicle (Shandong) Co., Ltd., introduced that through intelligent transformation, the company has achieved an increase in the production efficiency of producing an electric bicycle every 30 seconds, with a daily production capacity of 1,200 vehicles, and at the same time making the product have ultra-long endurance and ultra-long service life.

Source: Internet

In 2024, the company plans to invest more than 3,600 yuan to build a smart storage workshop of 17,000 square meters, update and transform the automated intelligent robot welding line, and further improve production efficiency.

On July 26 this year, the "2023 Shandong Provincial Science and Technology Award Ceremony" was held in Jinan, and the Kaos COSMOPlat industrial Internet platform won the special prize of the Science and Technology Progress Award.

The relevant person in charge of Kaos said that the main function of the platform is to use the industrial Internet platform to promote the innovation and development of the manufacturing mode, organization mode and operation mechanism of industrial enterprises, and enhance the core competitiveness of enterprises, which is of great significance for empowering the digital transformation and technological transformation of enterprises in "thousands of industries".

Industrial investment has given enterprises a new impetus for growth, and companies that feel the changes are willing to invest more real money. This creates a virtuous circle.

In the first half of the year, Shandong's investment in the secondary industry increased by 15.2 percent, higher than the national average of 12.6 percent, higher than Jiangsu, second only to Guangdong, and second among the top four provinces. In the first half of the year, Shandong's industrial technological transformation investment increased by 9.1% year-on-year, accounting for 20.8% of the total investment, and contributing 37.3% to the growth of the total investment.

"Transformation of 10,000 enterprises" and "10,000 technological transformations" have reshaped the advantages of traditional industries, and also made Shandong's economy lighter. For government departments, using financial funds as a lever to provide support for enterprise renewal and transformation in all aspects, leverage greater investment in enterprise technological transformation, and harvest more competitive industries.

From thermal power to energy storage first

If the comprehensive renewal of traditional advantageous industries is to reshape the traditional economic engine, then by attracting investment projects, driving the rapid rise of emerging industries and future industries, and guiding the industrial structure to green to new, it provides new momentum for the economy, which is equivalent to creating a new engine.

At 6 p.m. on June 30, 2024, with the integration of the first phase of the Laizhou large-scale saline-alkali tidal flat photovoltaic and storage integration project with an investment of 2.4 billion yuan, the installed capacity of new energy in Shandong exceeded 100.5 million kilowatts. Shandong has become the first province on the eastern coast of the country to have an installed capacity of more than 100 million yuan, and the "major coal power province" has taken a milestone step towards "green".

The site of the first phase of the Laizhou large-scale saline-alkali tidal flat photovoltaic and storage integration project. Source: Shandong release

At 11 a.m. on July 28, the nuclear island of Unit 1 of the first phase of the expansion of Huaneng Shidaowan Nuclear Power Base was officially concreted. This is another breakthrough in the construction of independent third-generation nuclear power units since the world's first fourth-generation nuclear power plant was put into commercial operation here in December last year.

With a total investment of more than 85 billion yuan, the first phase of the project includes two nuclear power units with a single capacity of 1.2 million kilowatts and an annual power generation capacity of 20 billion kilowatt hours after completion.

Previously, Shandong was not only a major industrial province, but also a large energy consumption province, with energy raw materials accounting for more than 40% of industrial income. In 2018, Shandong was the province with the largest thermal power generation in the country, with 536.77 billion kWh, accounting for 10.8% of the country's electricity supply and 82.3% of the province's electricity supply. Today, Shandong is still a well-deserved energy province, but the structure is undergoing fundamental changes.

Since the "14th Five-Year Plan", the installed capacity of new energy in Shandong Province has grown at an average annual rate of 25.2%, and the installed capacity and power generation have doubled in three years. As of the end of May this year, Shandong's installed photovoltaic power generation capacity was 62.42 million kilowatts, ranking first in the country, biomass power generation was 4.446 million kilowatts, ranking second, and wind power installed capacity was 26.004 million kilowatts, ranking fifth.

At present, Shandong is building a multi-energy complementary energy pattern of "wind, solar, fire, nuclear, storage, and hydrogen". Yue Jianru, deputy director of the Shandong Provincial Energy Bureau, said that by the end of this year, the installed capacity of new energy in Shandong will historically exceed that of coal power.

And that's not all.

In June this year, the world's largest 3,060 MW energy storage base project with a total investment of more than 20 billion yuan was launched in Heze County. The project has set three world records - after completion, it will become the world's largest new energy storage base, the world's largest salt mine cavity energy storage base, and the world's first single power 600MW compressed air energy storage power station. The world's first 660MW compressed air energy storage power station is expected to start construction in September.

As the infrastructure for the development of new energy, energy storage is a key part of the construction of a new power system. This year, Shandong also launched the country's first "cloud energy storage" construction pilot, and plans to build 50,000 kilowatts of "cloud energy storage" facilities in four cities including Dezhou and Jining in about two years to promote the local consumption of distributed photovoltaic power generation. Up to now, Shandong's new energy storage has an operating scale of 4.696 million kilowatts, ranking first in the country.

From the largest thermal power province to a new energy province, this has given Shandong more confidence to take the lead.

Big projects support new industries

On June 22 this year, the "New Generation Semiconductor Crystal Technology and Application Conference" opened in Jinan. At the opening ceremony, Zhongjing Xinyuan announced that the 8-inch silicon carbide northern base was officially put into production.

With a total investment of 1.5 billion yuan, the project is the largest 8-inch silicon carbide substrate production base in China built by Guangzhou Nansha Wafer Semiconductor Technology Co., Ltd. in Jinan, Shandong. In addition, Shandong Tianyue Advanced Technology Co., Ltd. (688234. SH) existing silicon carbide substrate production capacity, Jinan chip materials industry cluster in a short period of time began to take shape.

The introduction of large projects has allowed the Shandong rulers to see the driving effect: attracting a large investment and a new project can often bring an industrial chain to the local area, and then form an industrial cluster, so as to take into account the dual needs of reform and development. After all, Shandong is also shouldering the dual tasks of "taking the lead and taking the lead" and exploring the way for the country's green, low-carbon and high-quality development.

In the reform, the rulers of Shandong Province believe that the key to promoting high-quality economic development is to rely on the support of specific projects and focus on promoting new achievements in project construction. It is necessary to focus on industrial projects, realize the strengthening of traditional industrial fields, the momentum of emerging industries as soon as possible, and the advanced layout of future industrial fields, so as to continue to inject new impetus into economic development.

In the first half of this year, Shandong planned to invest a total of 13,894 projects of 100 million yuan or more, a year-on-year increase of 0.8%; The completed investment of projects with more than 100 million yuan increased by 10.2%, the growth rate was 5.3 percentage points higher than the total investment, and the total investment increased by 6.9 percentage points. and 2,649 projects of 1 billion yuan or more, an increase of 3.1%. Among them, some are to extend the chain of existing industries, make them bigger and stronger, and some are to shape emerging industries and cultivate future industries.

It is worth mentioning that in the first half of this year, Shandong's private investment increased by 8.2%, much higher than the national average of 0.1% growth in private investment; It accounted for 61.6% of Shandong's total investment, driving the growth of all investment by 4.9 percentage points. Nationally, in the first half of this year, the proportion of private investment in the overall investment rebounded to 51.9 percent.

In terms of industries, private investment in Shandong's manufacturing industry increased by 16.7%; Among the 31 manufacturing industries, private investment in 26 industries has increased. Among them, the growth rate of private investment in 17 industries, such as pharmaceutical manufacturing and chemical fiber manufacturing, exceeded 20.0%.

Today's investment is tomorrow's industry and a sustainable growth driver. Private investment reflects the vitality of the economy and reflects the confidence of private enterprises in economic development. The enthusiasm of private investment reflects that Shandong's exploration of green, low-carbon and high-quality development has received investment support from private enterprises.

How important this is.

How can Shandong

On July 30, the Political Bureau of the CPC Central Committee held a meeting to analyze and study the current economic situation and make arrangements for economic work in the second half of the year. The meeting clearly stated that "we must continue to play the role of a major economic province as a major pillar".

In this regard, Shandong has an unshirkable responsibility and does not dare to relax.

On the same day, the Shandong Provincial Government issued the "Several Policies and Measures on Further Promoting the Steady Improvement of the Economy and Improving the Quality of the Economy", involving 40 policies and measures to promote stable industrial production and efficiency, strengthen the shortcomings of the service industry, support enterprises to stabilize their operations, speed up project construction, tap and release consumption potential, make every effort to stabilize foreign trade import and export, improve the efficiency of investment promotion, and improve the level of safe development.

This is already the third batch of policies for Shandong in 2024 to "promote economic consolidation and improvement, and accelerate green, low-carbon and high-quality development".

At the end of December last year and the beginning of May this year, Shandong Province released the first and second batches of policy lists for 2024 respectively. Among them, there are not only policy guidance such as optimizing the business environment, but also "real money" subsidies such as tax and fee reductions; Not only is there a continuation of the previous reform measures, but new policies have also been formulated to address new problems. For example, the first batch of policy lists are closely related to the demand side such as strong investment, consumption expansion, and foreign trade stabilization; The second batch of policy lists went on to introduce large-scale equipment refreshes and trade-ins for consumer goods. It was the introduction of the first two batches of policies that promoted the significant growth of investment and consumption in Shandong in the first half of the year.

According to the relevant person in charge of the Shandong Provincial Development and Reform Commission, the Shandong Provincial Party Committee and the Provincial Government launched these 40 policies and measures in the middle of the year, the main consideration is to focus on the current economic operation shortcomings and weaknesses and difficult problems that need to be solved urgently, adhere to the combination of innovative work measures and strengthen policy supply, and target to crack the blockages in industry operation, enterprise production, project construction and other aspects.

Because of this, each of the three policy lists has a clear implementation validity period, which varies in length. Some of them will last until the end of this year, and some of them will be clearly extended until 2025. This gives market players clear expectations and specific requirements for relevant government departments – each policy measure in the list designates a special government department to be responsible for implementation.

If you count the 29 policies that will continue in the list of "stability and improvement, progress and quality" in 2023, there are currently 151 policy measures in the implementation, from production, consumption to investment, they involve all aspects of economic life, benefiting all walks of life, from large and medium-sized enterprises to science and technology enterprises, from specialized and special new "little giants" to individual industrial and commercial households, almost all of them can find favorable measures related to them.

It is foreseeable that the release of these policy dividends will play a direct role in promoting Shandong's economic aggregate and growth rate in the second half of this year.

The reason is simple. In the final analysis, the major economic provinces are relying on thousands of market entities. A grand industrial change, not only to have a long-term industrial planning, to ensure the continuity of the reform policy, but also to introduce effective short-term policies in a timely manner to solve the practical difficulties faced by enterprises, the combination of long and short, both the symptoms and the root causes, in order to ensure the smooth progress of the reform.

For Shandong Province, where the overall economic volume is already running towards 10 trillion yuan, whether it is the conversion of old and new kinetic energy, or the realization of green, low-carbon and high-quality development, the most important force is each market entity targeted by these specific and micro policies. Supporting and helping every market entity, so that they have the ability and confidence to carry the reality and ideals, converges into the most powerful growth engine.

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