FTA sparks new growth

ROK is Yantai's largest trade partner, major overseas source of investment

Yantai, a coastal city in East China's Shandong province, is cashing in on the China-Republic of Korea Free Trade Agreement, which was officially signed on June 1 last year, with expanding business in e-commerce, healthcare, the creative industries and high-end maritime economy.

The FTA, which is China's largest bilateral free trade agreement in terms of volume, focuses on 17 areas, including trade in goods and services, healthcare, entertainment and investment, as well as e-commerce and government procurement.

"Yantai has really benefited and developed as a result of the FTA and the city has undergone great changes during the past year," said Zhang Yongxia, mayor of the city.

"The ROK has become Yantai's largest foreign trade partner and its main source of foreign investment," Zhang told a group of journalists and photographers from ROK media outlets who gathered in the city last month.

Statistics from Yantai's commerce bureau show the city's foreign trade with the ROK reached $11.08 billion last year, a year-on-year increase of one percent and accounting for 22.4 percent of the total foreign trade generated by Yantai last year.

Located in eastern Shandong and geographically close to the ROK, Yantai has become a popular destination for leading ROK firms, including LG Corp, Doosan Heavy Industries and Construction Co and Hyundai Motor Co.

By May, 3,651 ROK-backed projects were underway in Yantai, involving utilized investment of $5.56 billion. These projects cover a wide range of fields, including textiles, electronics, machinery, food, maritime shipment and finance.

Such growth and investment has continued this year, with contractual investments from ROK enterprises registering a year-on-year growth of 143.6 percent to reach $166 million during the first five months of this year, according to the commerce bureau of Yantai.

Zhang said Yantai will continue to push for innovation and foster an international business environment with advantageous policies, so that the China-ROK Yantai Industrial Park develops into a hub for enterprises from the ROK.

Covering 32 square kilometers, the China-ROK Yantai Industrial Park is focused on developing the bioscience, intelligent manufacturing, auto manufacturing, marine technology and high-end service industries.

Yu Dong, director of Yantai's commerce bureau, said the industrial park will provide a platform that will enable both countries to develop.

A number of firms have already established facilities and undertaken projects or are currently establishing a presence in the park. Asiana Airlines Inc opened a cargo distribution center in the park in March; the first phase of Huaan Korea Town, which involves investment of 28.8 billion yuan ($4.72 billion) is under construction.

Yang Li, deputy mayor of Yantai, said the city is currently transforming its industrial structure and is looking to move from equipment manufacturing to more high-end industries and service sectors.

The city aims to develop into a hub for ROK businesspeople to both invest and live in China and make them "feel at home" in Yantai.

Park Junghwan, editor-in-chief of Business Korea magazine, noted that under the strategy of "Two countries, two parks", the industrial park located in Yantai is now competing with some parks based in ROK and he urged Yantai to develop more industries with unique features in order to attract investors.

Contact the writers at zhaoruixue@chinadaily.com.cn, wangqian2@chinadaily.com.cn and yangcheng@chinadaily.com.cn

South Koreans find home from home in Yantai

Yantai's mayor Zhang Yongxia is often told by foreign visitors to the city that they are impressed by the city's strong "Korean elements", including road signs in both Chinese and Korean.

To date, roughly 50,000 people from South Korea are living, working and studying in the city, and to the surprise of many outsiders, a growing number of South Koreans see Yantai as their second home.

This was echoed by Zhang Junhai, deputy director of the Huanghai Community, who said he was touched by the fact that some South Korean residents, such as Jung Hoejin, principal of BOB Training School, who lives in the community, register "return home" on airport arrival cards as their "purpose of visit".

In Huanghai Community, there are 128 South Korean families out of a total of 3,918, and 500 South Korean residents out of the total of 12,600.

There are South Korean caf��s, restaurants and schools run by South Korean people, and the number of businesses run by South Korean nationals is rising, according to Zhang.

To better serve their needs, the community offices now offer Korean-language services.

Han Inkyung, owner of the Ti Amo restaurant, said she has run business in the community for 10 years and her business has grown rapidly despite the recent slowdown of the food service sector.

"More South Korean people have moved to the community and, as a result, Chinese people's lifestyles have undergone major changes in recent years," she said. "Both of these factors have benefited my businesses."

At the beginning of the year, construction began on a Korea Town, which is invested by Huaan Group.

The project involved investment of 117.3 billion yuan ($19.2 billion) and covers 20 square kilometers.

According to Li Guo'an, president of Huaan Group, the town, benefiting from the China-Republic of Korea Free Trade Agreement, is expected to become home to more than 200,000 South Korean people in the near future, which will make it the largest South Korean community in the country.

The coastal city of Yantai, in East China’s Shandong province, has been trading with the Republic of Korea for more than 2,600 years.Ju Chuanjiang / China Daily