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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 consumption, innovation, AI, manufacturing, and more.
Shandong’s 2026 Policy Package: What Foreign Founders Need to Know
Shandong Province has released its second batch of 2026 policies aimed at stabilizing economic growth and improving quality. For foreign founders registering or operating a company in China, these measures signal opportunities for investment and expansion. Below is a summary of the key points from the official notice, rewritten for practical use.
Consumer Market and Cultural Incentives
The province is allocating funds to stimulate consumption and cultural activities:
- Consumption scenarios: 40 million yuan to support diverse, themed, and nighttime consumption areas; 60 million yuan for retail and dining vouchers in various cities.
- Performance economy: Support for tourism performances, concerts, and music festivals, with financial rewards for qualifying organizers.
- Creative products: One-time rewards for outstanding cultural and creative products based on originality and impact.
- Consumer credit: A 1 percentage point interest subsidy on eligible personal consumer loans and credit card installments, funded by provincial and central resources.
Employment and Talent
Provincial state-owned enterprises are required to allocate at least 65% of their campus recruitment to fresh graduates, with autumn recruitment for 2027 graduates launching by the end of November. This may ease hiring for foreign firms seeking local talent.
Investment and Innovation Support
Several measures aim to boost investment in technology and infrastructure:
- Policy fund management: A 50 million yuan reward pool for cities that effectively use central budget investments, ultra-long special treasury bonds, and new policy financial tools. The top five cities receive awards ranging from 5 to 15 million yuan.
- Intellectual property investment: Support for building provincial concept validation centers and pilot testing bases in fields like embodied intelligence, brain-computer interfaces, commercial aerospace, industrial mother machines, and high-end software.
- Horizontal research projects: Researchers participating in projects with funding of 500,000 yuan or more may have these projects treated as provincial-level science and technology projects for evaluation purposes.
Marine Economy and Infrastructure
80 million yuan in local government special bonds will support national marine economic demonstration zones and provincial marine industry clusters, focusing on infrastructure. Additionally, 10 new blue talent teams in high-end shipbuilding, marine biomedicine, and new marine energy will receive 3 to 3.4 million yuan annually for three years.
For infrastructure projects listed as national or provincial key projects (transport, energy, water), temporary land and forestry use approvals can be extended across construction sections, with cumulative use not exceeding the approved construction period.
Environmental Assessment Reforms
Cities may expand pilot programs linking planning and project environmental impact assessments to all national parks with completed planning assessments and qualified provincial parks, simplifying project-level procedures. For strategic emerging industries (next-gen IT, new energy vehicles, AI, quantum tech, deep sea/deep earth/deep space, low-altitude economy) and certain manufacturing sectors, projects requiring environmental impact report forms may be eligible for notification-based commitment approval.
Financial Support for Construction and Services
Construction companies can pledge or transfer receivables from confirmed projects (including PPP projects) for financing. Banks are encouraged to explore loans backed by receivables, materials, equipment, and trademarks. Bond financing support is increased for green building materials, green buildings, and prefabricated construction.
For pumped storage hydropower, a benchmark capacity price applies to projects starting in 2025-2027: 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: up to 100 yuan/kW·year is fully retained by the station; 100-300 yuan/kW·year portion is 55% retained; above 300 yuan/kW·year is 10% retained, with the rest contributing to system operation fees.
Service Industry and Platform Economy
100 million yuan will incentivize cities with strong service sector performance in the first three quarters, with up to 20 million yuan per city. About 90 million yuan will support qualified service platform enterprises based on brand evaluation. Additionally, 150 million yuan will help micro and startup enterprises build brands, and 50 million yuan will support brand upgrading in accounting, trade, and testing sectors. Another 100 million yuan will fund financial-industrial对接 through re-lending subsidies and insurance subsidies.
Manufacturing and AI
Initiatives include:
- AI plus manufacturing: 10 million yuan annual awards to cities for “AI+Manufacturing” pioneer applications in chemicals, steel, and equipment.
- AI capability centers: One-time rewards for centers across 31 manufacturing categories.
- Smart factories: Support for about 40 smart factory projects annually; “scenario vouchers” for about 30 intelligent manufacturing applications.
- AI terminals: Support for about 30 AI terminal products annually.
- Robotics: Support for about 20 innovative products in humanoid robots, industrial robots, and key components.
Agriculture Modernization
From 2026 to 2028, 300 million yuan annually will support new or upgraded facility agriculture projects in eligible villages.
Practical Implications for Foreign Founders
These policies indicate Shandong’s focus on high-tech industries, advanced manufacturing, and modern services. Foreign founders considering setting up a company in Shandong may find incentives in AI, robotics, marine economy, and green technologies. The simplified environmental assessment procedures and financial support for construction could reduce operational hurdles. However, eligibility criteria and application processes vary, so consulting local authorities or professional advisors is recommended.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.
For assistance with company registration and operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.