An aerial view of Qingdao City, Shandong Province, on September 10 (WEI YAO)
Over the past decade, Qingdao, a coastal city in east China’s Shandong Province, has seen extensive progress in industrial innovation, ecology and residential well-being.
In 2023, the city’s gross domestic product (GDP) hit $219.44 billion, a 5.9-percent increase compared to 2022. GDP is important because it serves as a comprehensive measure of overall economic health and performance within a given period.
Investments in infrastructure, hi-tech industries, strategic emerging industries and manufacturing increased by 38 percent, 27.6 percent, 24.5 percent and 10.8 percent, respectively. The city is also making swift progress in cutting-edge fields such as genomics, cell technology, networking, artificial intelligence (AI), deep-sea exploration and aerospace.
A tech hub
Marco Lovati, a professional who has worked in Austria, Finland and Switzerland, continues to seize opportunities that enhance his career development. After arriving in China in 2021, Lovati eventually secured a role as a senior algorithm development engineer at Hisense, a global leader in home appliances and consumer electronics operating, headquartered in Qingdao, where he decided to settle.
Lovati’s work centers on AI, particularly in the area of music creation. He values a type of career growth that not only builds personal capacity but also creates value for others. “It’s interesting, it’s satisfying and I enjoy the job very much,” he noted during a research forum gathering foreign experts from a range of professional fields in Qingdao on September 10.
Discussing Qingdao, Lovati emphasized its scenic beauty, with its seaside and mountainous landscapes, as well as its atmosphere, famous for its Chinese barbecue—and its eponymous Tsingtao Brewery, which was established in 1903. The city also hosts global companies like Hisense and Haier, another Chinese home appliance and consumer electronics manufacturer, making it an attractive hub for talent. He pointed out that the innovative environment is a main draw for overseas professionals such as himself.
This coastal city benefits from a strategically advantageous geographic location and boasts a highly developed transportation network, which includes an airport, port, expressway and subway system. Qingdao is also rapidly gaining recognition as a hub for innovation and hi-tech industries, in addition to being ranked among the top 10 Chinese cities most attractive to foreign talent.
Hisense, headquartered in the city since its founding in 1969, achieved a remarkable revenue of 202.2 billion yuan ($28.6 billion) in 2023. Of this total, 85.8 billion yuan ($12.2 billion) came from international markets, accounting for 42.5 percent of the company’s total earnings.
In addition to its core businesses in display technology and smart appliances, where it holds a leading global position, Hisense has been expanding into sectors such as automotive electronics, optical communication, healthcare and smart transportation.
While investing in hi-tech fields offers substantial returns, it also involves greater risks. Hisense’s success in the smart industry is largely attributed to the support from Qingdao. For instance, in 2002, Qingdao was among one of nine cities selected as a pilot city for smart transportation systems, providing Hisense with the opportunity to develop in this sector.
Smart transportation enables local residents to, for example, access real-time public transportation information via mobile apps and digital screens at key locations like bus stops. Bus operating companies benefit from real-time monitoring, remote control, intelligent dispatching of vehicles and the ability to match passenger flow with traffic capacity. These advances help cities improve operational efficiency.
Since Qingdao became a partner city for the Beijing 2008 Olympic and Paralympic Summer Games, Hisense has consistently advanced its smart transportation technologies at major events, including the 2010 Shanghai Expo, the Guangzhou Asian Games, and the 2018 Shanghai Cooperation Organization (SCO) Qingdao Summit.
China’s shift toward hi-tech green industries is accelerating today, with experts predicting that the “new three” sectors—photovoltaics, lithium-ion batteries and electric vehicles (EVs)—will play a pivotal role in shaping the country’s economic future.
Qingdao is actively embracing this trend.
In terms of industrial development, “Qingdao is focusing on new energy and new materials as key industrial sectors,” Yu Bingbo, Deputy Director of the Qingdao Science and Technology Bureau, said at the forum. These areas are central to the city’s industrial strategy and innovation efforts.
Teld New Energy, a leading EV charging operator in China, recently recorded its first annual profit after nearly a decade of operations, thanks to the country’s rapidly expanding EV market. Teld, which manages the largest charging network in the nation, has benefited from the rising demand for EV infrastructure.
Tgood Electric, Teld’s Qingdao-based parent company, reported considerable expansion of its public charging network, driving both revenue and profitability. Tgood, traditionally a manufacturer of electrical distribution systems, entered the EV charging market by founding Teld in 2014.
The New Energy Eco-technology Museum of China in Qingdao (WEI YAO)
A warm welcome
“I’ve lived in Qingdao for a few years now and have everything settled. I feel comfortable with my life here,” David Huemmerich, General Manager of the LOGOMAT Automation Systems’ Qingdao plant, told Beijing Review after attending the foreign expert forum. Having previously headed the U.S. facility of LOGOMAT, a producer of modular conveyor systems, for six years, Huemmerich moved to China in 2019.
Ishigami Takeshi, Financial Director at Panasonic Industrial Devices’ subsidiary in Qingdao, echoed this sentiment. Since arriving in 2023, he considers Qingdao’s environment more appealing compared to cities where he has previously lived and worked.
Huemmerich’s connection to China dates back to 2010 when, as a mechanical
engineering student at the Koblenz University of Applied Sciences, Germany, he participated in a student exchange program with the Qingdao University of Science and Technology. His six-month stay in the iconic coastal city was transformative, sparking a lifelong interest in the city.
After completing his degree, he began his career at the German enterprise managing sales operations in the United States.
In 2019, LOGOMAT’s leadership approached Huemmerich with the opportunity to head their China expansion. After careful consideration, Qingdao was selected as the site for the new manufacturing facility due to its strategic location and cost-effectiveness.
Qingdao, situated between Beijing and Shanghai, allows for efficient travel and service access to key customers in north and east China. This central position reduces the time and cost of servicing clients. Additionally, Qingdao offers lower operational costs compared to larger cities like Shanghai or Beijing, making it an attractive location for businesses looking to expand.
While the company remains small compared to industry giants, its presence continues to grow, and its local production capabilities have improved both service quality and delivery time, according to Huemmerich. Looking ahead, he is optimistic about LOGOMAT’s future in China. “We’re here to stay—in Qingdao,” Huemmerich affirmed.
Takeshi expressed a preference for Qingdao’s business environment compared to his experiences in Wuxi, Jiangsu Province in east China, Tianjin Municipality in north China and several international cities. During his nearly year-and-a-half stay in Qingdao, he has noted how proactive the local government is in supporting businesses.
“Our interactions with the Qingdao local government have been more frequent than in other places. Departments responsible for various functions have reached out to see if we face any difficulties in operating or doing business and if we need any assistance,” he said at another research meeting at Panasonic’s Qingdao facility on September 12.
He also praised the city’s livability. “The climate is exceptionally pleasant, and everyone is friendly here,” Takeshi added.
(Print Edition Title: Innovation & Investment)
Copyedited by Elsbeth van Paridon
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