Recently, the CPC Shandong Provincial Committee and the Provincial Government issued the Action Plan for Building a Leading Province in Advanced Manufacturing (2022–2025), requiring all departments at all levels to thoroughly implement the guidelines.

The full text of the Action Plan for Building a Leading Province in Advanced Manufacturing (2022–2025) is as follows:

I. Overall Objectives

We will adhere to the “3-4-5” advancement strategy: overcoming three key bottlenecks, optimizing four key industries, and promoting five core transformations. This means addressing weak innovation capacity, heavy industrial structure, and tight resource constraints. We will vigorously phase out low-efficiency capacity, upgrade traditional industries, foster emerging sectors, and strategically plan future industries to comprehensively promote advanced, intelligent, green, service-oriented, and ecological development of the manufacturing sector.

By 2025, the added value of manufacturing is expected to account for approximately 30% of the province’s GDP. Profit margins for large industrial enterprises should reach around 6%, R&D expenditure should reach 2.2% of operating revenue, and high-tech industries should contribute about 50% of the total industrial output. The core industries of the digital economy should account for 10% of GDP. Energy consumption per unit of industrial added value should fall by around 17% compared to 2020, achieving both qualitative and quantitative growth, and laying the foundation for Shandong to become a leading province in advanced manufacturing.

II. Advancing Manufacturing Toward Higher-End Development

1. Enhancing Innovation Capabilities

We will focus on foundational and frontier fields in manufacturing, build platforms for common industrial technologies, and strive to establish national-level innovation hubs. A tiered system will support tech SMEs, high-tech enterprises, and technology-leading firms. Enterprises leading in science and technology will be encouraged to form innovation consortia, raising the coverage rate of R&D institutions among medium and large enterprises.

We will compile a provincial catalog for foundational industrial innovation, focusing on key parts, components, materials, software, and processes. Through challenge-based funding and competition mechanisms, we aim to tackle core bottlenecks. We will improve mechanisms for first-batch applications of new technologies, such as government procurement and insurance compensation. By 2025, the province plans to build about 50 manufacturing innovation centers and around 2,000 enterprise-based R&D centers.

2. Upgrading Industrial Structure

We will phase out low-efficiency capacity and continue special campaigns to transform the chemical sector. Key industries such as steel, petrochemicals, coking, cement, tires, and chemicals will be guided toward high-quality development. Programs like “Ten Thousand Technological Transformations, Ten Thousand Enterprise Upgrades” will support industry-wide innovation.

Emerging strategic industries—including next-gen IT, AI, biotechnology, new energy, new materials, high-end equipment, and environmental protection—will be developed through integrated cluster-building. Forward-looking deployment in frontier sectors such as life sciences, quantum information, gene technology, future networks, deep-sea and aerospace exploration, hydrogen energy, and energy storage will shape new growth drivers.

3. Strengthening the Industrial Talent Pool

We will integrate talent, education, industry, and innovation chains. Entrepreneur, management, R&D, engineering, and skilled talent development will be accelerated, including the implementation of the “Taishan Talent Project.” Enterprises will be encouraged to become talent-driven organizations. Vocational education will adopt group-based models, and youth entrepreneurship will be supported through mentorship. Recognition mechanisms for outstanding entrepreneurs will be established.

III. Accelerating Smart Manufacturing

4. Developing New Infrastructure

We will build a modern information infrastructure system, focusing on 5G, gigabit broadband, data centers, and deterministic networks. Key projects include the Shandong Industrial Cloud and the Spark·ChainNet supernode in Jinan. Cybersecurity classification systems will be promoted, alongside robust protections for data and networks.

5. Deepening Digital Empowerment

We aim to integrate the digital and real economies through enterprise digital transformation, tailored solutions, and the cultivation of model “Lighthouse” enterprises. Over three years, more than 20,000 large industrial enterprises will undergo digital upgrades. The Shandong Peninsula Industrial Internet Demonstration Zone will serve as a guiding project, supported by platform-building programs.

The “Cloud Empowering Shandong” initiative will deploy 10,000 digital specialists across industries. Smart manufacturing assessments will be conducted, with over 100 smart factories or digital workshops developed annually. By 2025, 45% of large manufacturers will apply industrial internet technologies, maintaining a top-three national ranking in digital integration.

6. Enhancing the Digital Industry

We will strengthen the core competitiveness of electronics manufacturing, including ICs, ultra-HD video, smart sensors, and VR. Shandong will develop over 100 provincial software engineering centers and branded software products. Big data will be a priority, enabling data-driven economic growth.

IV. Supporting Green Manufacturing

7. Building a Green Manufacturing System

A lifecycle approach to product sustainability will be adopted. Green products with low energy use, long life cycles, and high recyclability will be developed. Efficient use of energy and resources will be promoted through green factories and industrial parks. Green supply chains will be established with industry leaders, aiming for 500 green factories, 20 green parks, and over 500 green product designs by 2025.

8. Promoting Energy Conservation and Emissions Reduction

Carbon peaking in industry will be tackled step by step, with tailored plans for key sectors. Low-carbon technologies such as carbon capture and storage will be supported. “Efficiency leader” campaigns will advance energy and water use efficiency. Green buildings and photovoltaic-integrated construction will be encouraged.

9. Improving Output Efficiency

Land productivity evaluations (“output per mu”) will be optimized across all industries. The government will guide low-efficiency firms toward transformation.

V. Encouraging Service-Oriented Manufacturing

10. Promoting Servitization

Mass customization and flexible manufacturing will be supported. Shared manufacturing platforms will centralize high-cost, general-purpose equipment. Service-oriented manufacturing solution providers and demo projects will be nurtured.

11. Developing Productive Services

Advanced manufacturing will be integrated with services like R&D, logistics, lifecycle management, and financial services. Industrial design platforms and institutions will be promoted. Industrial heritage will be used for industrial tourism products combining production, sightseeing, and education.

12. Co-Creating the “Quality Shandong” Brand

Product variety, quality, and branding will be improved. Shandong will promote national standardization pilots and establish incentives for advanced standards. Legacy brands will be revitalized, and the “Quality Shandong” system will be improved to expand new consumption and open global markets.

VI. Promoting Industrial Ecosystem Clustering

13. Cultivating High-Quality Enterprises

A tiered system will support innovative SMEs, “Little Giant” firms, champions in niche fields, and industry chain leaders. By 2025, about 10,000 “specialized and innovative” SMEs and 1,000 manufacturing champions will be developed. Large enterprises will be encouraged to share resources with smaller firms to build an integrated innovation ecosystem.

14. Strengthening Industrial Chains

Flagship industry chain projects will be launched with chain maps and lead enterprises (“chain owners”). A provincial-municipal-county coordination mechanism will strengthen planning, investment, and tracking services across industrial chains. SME participation in supply chains will be deepened, enhancing resilience and security.

15. Developing Industry Clusters

Cluster development initiatives will support advanced manufacturing and strategic emerging industries. National-level cluster status will be pursued for top performers. By 2025, Shandong aims to build 200 provincial-level “geese-formation” clusters, 50 emerging clusters, 20 advanced clusters, and 120 specialty clusters.

16. Building Industrial Parks

Shandong will integrate into major national strategies like the Yellow River Protection Strategy and regional collaborations with Beijing-Tianjin-Hebei, the Yangtze River Delta, and the Greater Bay Area. Development zone reforms will simplify governance and clarify industrial positioning.

17. Unblocking Industrial Economic Circulation

Manufacturing supply structure will be optimized, and dual circulation will be supported. Strategic resources will be secured, and domestic companies encouraged to enhance independent R&D. Shandong will support global expansion of local firms, develop international trade platforms, and build resilient and secure industrial chains.

VII. Supporting Measures

18. Strengthening Organizational Leadership

The Provincial Leading Group for Building a Manufacturing Powerhouse will coordinate efforts. All levels of government will align with this strategic focus and refine long-term goals, tasks, and evaluation systems.

19. Creating a Favorable Environment

Legal and institutional support will be enhanced in areas like property rights and fair competition. Private enterprise innovation will be encouraged, and FDI will be guided toward advanced manufacturing. Associations and chambers of commerce will be strengthened.

20. Ensuring Factor Supply

Land, energy, and emissions quota allocation will favor advanced manufacturing. Transaction mechanisms for energy, water, and emissions rights will be improved. Intermodal logistics systems and unified freight models will be explored to reduce logistics costs.

21. Enhancing Fiscal and Financial Support

Tax cuts and fee reductions will be fully implemented. Public funds will leverage private capital. Financial products tailored to advanced manufacturing, including green finance and IP-based lending, will be promoted. Credit systems and financing platforms will be strengthened.

22. Strengthening Safety Management

Enterprises will be required to comply with safety regulations and invest in safer processes and equipment. Industry-specific safety standards will be upgraded.

Source: Official Website of the People’s Government of Shandong Province