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Shandong’s 2026 Policy Package: What Foreign Founders Need to Know

A practical guide for foreign founders on Shandong Province’s second batch of 2026 economic policies, covering consumer incentives, industrial upgrades, and sector-specific support.

Shandong’s 2026 Policy Package: What Foreign Founders Need to Know

The Shandong Provincial People’s Government has released the second batch of its 2026 policy list aimed at promoting steady economic progress and improving quality and efficiency. For foreign founders registering or operating a company in China, these measures signal where provincial support is being directed and how businesses can align their plans. Below is a factual overview of the key provisions.

Consumer Spending and Tourism Incentives

Shandong is allocating funds to stimulate consumer activity. A total of 40 million yuan is being raised at the provincial level to support new consumption scenarios that integrate multiple formats, feature special themes, or focus on nighttime economy. Additionally, 60 million yuan will help cities issue retail and catering consumption vouchers.

The province is also promoting the performance economy by building the “Follow Performances (Music, Film, Animation) to Travel in Shandong” brand. Cities are encouraged to develop boutique tourism performance projects with distinctive and long-term appeal. Eligible organizers of qualified performance projects, concerts, and music festivals can receive financial rewards.

Businesses that develop hit cultural and creative products are eligible for one-time rewards based on comprehensive evaluation covering originality, artistry, cultural value, social impact, and dissemination. A provincial fund has been raised for this purpose.

To lower consumer credit costs, the province is implementing an interest subsidy policy for personal consumption loans and credit card installment business. The provincial finance department, together with central funds, will provide a 1 percentage point subsidy for eligible loans.

Employment and Talent Support

Provincial state-owned enterprises are required to expand recruitment of university graduates. In principle, they should set campus recruitment plans with graduates accounting for no less than 65% of annual hires, and hold autumn recruitment for the 2027 graduating class by the end of November, with centralized release of recruitment information.

For research personnel, those leading or participating in horizontal scientific research projects with individual funding of 500,000 yuan or more may, at eligible universities and research institutes, be treated as equivalent to provincial science and technology plan projects in job assessments and professional title evaluations.

Investment and Industrial Upgrades

A 50 million yuan provincial special fund will reward cities based on their management of central budget investment, ultra-long-term special government bonds, and new policy-based financial instruments. The top five cities will receive 15 million, 12 million, 10 million, 8 million, and 5 million yuan respectively to support social welfare and urban renewal projects.

To boost investment in intellectual property products, the province will build provincial concept verification centers and pilot testing bases in key fields such as embodied intelligence, brain-computer interfaces, commercial aerospace, industrial mother machines, and high-end software. Eligible projects will receive policy support.

Marine Economy and Infrastructure

An 80 million yuan allocation from local government special bonds will support the creation of national marine economic development demonstration zones and provincial modern marine industry clusters, focusing on infrastructure improvements. In key areas like high-end shipbuilding, marine engineering equipment, marine biopharmaceuticals, and new marine energy and materials, 10 new blue talent teams led by Taishan industry leaders will be cultivated. Each team will receive 3 to 3.4 million yuan per year for three consecutive years from provincial funds.

For transportation, energy, and water infrastructure projects included in national and provincial key project lists, temporary land, forest, and grassland use approved by law may be used continuously across different construction sections before reclamation periods expire, subject to provincial confirmation, with cumulative use not exceeding the approved construction period.

Environmental Assessment and Construction Industry

Cities may apply to expand the pilot linking planning environmental impact assessments (EIA) with project EIAs to all national parks that have completed planning EIAs and qualified provincial parks, simplifying EIA procedures for individual construction projects.

For strategic emerging and future industries such as new-generation information technology, new energy vehicles, artificial intelligence, quantum technology, deep-sea/deep-earth/deep-space, and low-altitude economy, as well as equipment manufacturing and other specified industries, cities may pilot EIA notification commitment approval for projects requiring EIA report forms.

The construction industry will receive greater financial support. Companies can pledge or transfer receivables from confirmed engineering projects (including PPP projects) as assets, with financing ratios determined by financial institutions based on asset quality. Banks are encouraged to explore mortgage and pledge loans using receivables, building materials, engineering equipment, and trademark rights. Bond financing support will be increased for green building materials, green buildings, and prefabricated construction.

Energy Pricing and Service Industry

A pumped-storage power pricing policy will stabilize investment expectations. For projects starting between 2025 and 2027, benchmark capacity prices are set at 487.53 yuan/kW·year for 6-hour projects and 459.16 yuan/kW·year for 5-hour projects (tax included). Revenue sharing from energy and ancillary service markets is tiered: stations retain 100% of revenue up to 100 yuan/kW·year, 55% for the portion between 100 and 300 yuan/kW·year, and 10% above 300 yuan/kW·year, with the remainder allocated to system operation fees. Parameters will be reviewed after project operation based on actual investment and market prices.

To stabilize the service sector, 100 million yuan will incentivize cities with outstanding service industry performance in the first three quarters, with maximum subsidies of 20 million yuan per city.

The platform economy will receive approximately 90 million yuan in provincial funds. Eligible service platform enterprises will be subsidized based on comprehensive evaluation of brand building foundations and brand enhancement plans.

Under the “Shandong Service” brand initiative, 150 million yuan will support brand creation for emerging and seed-stage small and micro enterprises and startups. Another 50 million yuan will support brand enhancement in sub-sectors such as business services (accounting), trade circulation, and inspection and testing.

To cultivate high-quality service industry growth, funds will support eligible projects in emerging service areas like AI services, R&D, inspection and certification, and agricultural social services; key producer services like internet wholesale, professional markets, multimodal transport, and warehousing; and service consumption areas like cultural tourism, health care, broadcasting, online audiovisual, and digital performances.

Financial-industry integration will be promoted with 100 million yuan for re-lending interest subsidies and insurance subsidies to support the financial services sector.

Green Economy and Advanced Manufacturing

The province will allocate 100 million yuan to support the recycling of key renewable resources such as scrap steel, copper, and aluminum, guiding standardized operations across the entire industrial chain.

In key fields like chemicals, steel, and equipment, cities are supported to launch “AI + Manufacturing” pioneer applications. Each year, eligible cities will receive 10 million yuan in awards to build AI innovation application pioneers.

Manufacturing enterprises will be supported in enhancing AI application capabilities. Across 31 major manufacturing categories, “AI Capability Centers” will be established, with one-time awards for eligible centers, aiming for full coverage in key categories.

To deepen AI integration with advanced manufacturing, about 40 smart factory projects with significant AI application and multi-scenario implementation will be supported annually with one-time awards. Around 30 projects will receive “scenario vouchers” for intelligent manufacturing applications across 19 signature and 67 key industrial chains.

The AI terminal industry will be boosted with support for about 30 AI terminal products annually, each eligible for one-time awards. Similarly, about 20 innovative products in humanoid robots, industrial robots, and key core components will be supported annually to enhance robot applications in typical manufacturing scenarios.

Agriculture Modernization

From 2026 to 2028, 300 million yuan will be raised annually to support eligible villages in building or upgrading facility agriculture projects, advancing modernization.

Foreign founders can leverage these policies by aligning their business activities with the priority sectors. For assistance with company registration and operations in China, contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.