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An important region in Eastern China, Shandong Province has seen substantial change in its economic landscape in recent years. Much of this development has been concentrated in Qingdao.[14] Qingdao has seen rapid development. With an annual growth rate of 18.9 percent in 2006, the city's GDP reached 42.3 billion, ranking first in Shandong Province and tenth out of China's top 20 cities.[14] GDP per capita comprised RMB¥52,895 (US$7,616) in 2008. The GDP has grown steadily at an average pace of 16% annually. In 2006, Qingdao was ranked one of six "golden cities" by the World Bank, out of 120 Chinese cities assessed on factors including investment climate and government effectiveness.[14]
 
Internationally, Qingdao is perhaps best known for its Tsingtao Brewery, founded by a German-British joint venture in 1903 that produces Tsingtao beer, the most well-known Chinese export beer. It is also home to Haier, a large white goods manufacturer, and Hisense, a major electronics company. In 2002 guitar manufacturer Epiphone opened a factory in Qingdao.[15]
 
In 1984 the Chinese government named a district of Qingdao a Special Economic and Technology Development Zone (SETDZ). Along with this district, the entire city had gone through amazing development of secondary and tertiary industries. As an important trading port in the province, Qingdao flourishes with foreign investment and international trade. South Korea and Japan in particular made extensive investment in the city. Approximately 80,000 South Korean citizens reside there. Construction proceeds at a relatively fast pace in Qingdao.
 
In terms of primary industry, Qingdao has an estimated 50,000 acres (200 km²) of arable land. Qingdao has a zigzagging pattern coastline, and thus possesses an invaluable stock of fish, shrimp, and other sea resources.
 
Qingdao is also home to a variety of mineral resources. Up to thirty different kinds have been mined. Qingdao's wind power electricity generation performs at among the best levels in the region.[citation needed] The city has also a number of paper mills. One plant is called Qingdao Bei Fa paper mill. Mill's machine is Karlstads Mekaniska Werkstad (KMW)-made (width 3048 mm) and it was acquired from Kajaani paper mill in Finland in the middle of the 1980s.
 
Industrial zones
 
Approved by the State Council in October 1984, Qingdao Economic and Technical Development Zone has a planned of 12.5 square kilometers. In 2004 the local GDP is 27.51 billion RMB, increased by 28.9%; the total industrial output value is 60.6 billion RMB, increased by 31%. There have been 48 projects invested by companies listed among the Global Fortune 500 in the zone. With the fast development of reform and opening-up, Haier, Hisense, Aucma, Sinopec, CSIC, CNOOC, CIMC etc. all locate in the zone.[16]
 Qingdao Free Trade Zone
 
Qingdao Free Trade Zone was established by the State Council in 1992. The zone is 60 km away from Qingdao Liuting Airport. It is also close to Qingdao Qianwan Harbor. At present, more than 40 foreign-invested enterprises have moved in and 2000 projects have been approved. It is one of the special economic areas which enjoys the most favorable investment policies on customs, foreign exchange, foreign trade and taxation in China.[17]
 Qingdao High-tech Industrial Zone
 
Qingdao High-Tech Industrial Development Zone was approved the State Council in 1992. The zone is located close to Qingdao Liuting Airport and Qingdao Harbor. Encouraged industries include electronic information, biotechnology, medicine, new materials, new energy, advanced equipment manufacturing, marine science & technology, national defense technology.[18]