Published by ChinaMNC · Tuanfeng

Shandong's 2026 Second-Batch Economic Policy List: What Foreign Founders Should Know

A practical overview of Shandong Province's 2026 second-batch policy measures to stabilize growth and improve quality, covering consumption incentives, industrial upgrading, AI adoption, environmental approvals, energy pricing, and service-sector support, with notes for foreign founders operating companies in China.

Overview: Shandong's 2026 Second-Batch Policy Package

Shandong Province has issued its 2026 second-batch policy list for promoting steady economic progress and quality improvement. The document, approved by the provincial Party committee and government, sets out measures intended to expand domestic demand, improve supply, remove bottlenecks, and support the province's role as a major economic player. For foreign founders with entities or planned investments in Shandong, the list signals where provincial funding and administrative flexibility are being directed.

The measures below are drawn from the official notice. Amounts are provincial funding arrangements or reward scales as stated in the source; they are not entitlements for any individual company.

Consumption and Services

Consumption scenarios and vouchers

The province is allocating RMB 40 million to support new consumption scenarios, including multi-sector integrated, themed, and nighttime economy formats. A further RMB 60 million is designated for cities to issue retail and catering consumption vouchers.

Performance and creative products

Shandong encourages the performing arts economy under a "follow the performance" tourism brand, supporting cities to develop distinctive, long-running premium tourism performance projects. Funding rewards are available for organizers of qualifying premium performance productions and for eligible concerts and music festivals. Separately, market entities developing hit cultural and creative products can receive one-off rewards after comprehensive evaluation covering originality, artistry, cultural value, social influence, and reach.

Consumer credit subsidy

A personal consumer loan interest subsidy applies to eligible personal consumer loans and credit card installment business. Provincial finances, pooling central funds, provide a 1 percentage point subsidy to lower household credit costs.

Service-sector incentives

RMB 100 million is set aside to reward cities with strong service-sector performance in the first three quarters, with a maximum of RMB 20 million per city. About RMB 90 million supports eligible service-sector platform enterprises following evaluation of brand-building foundations and brand improvement plans. A further RMB 150 million supports brand creation by early-stage and seed-stage small and micro enterprises, plus start-ups, while RMB 50 million supports brand upgrading in segments such as business services (accounting), commerce and distribution, and testing and inspection. Additional funding supports quality projects in emerging services, key producer services, and service consumption fields.

Industrial and Technology Measures

Intellectual property and research

To promote investment in intellectual property products, the province plans provincial-level concept validation centers and pilot-testing bases in fields including embodied intelligence, brain-computer interfaces, commercial space, industrial machine tools, and high-end software, with policy support for qualifying cases. Researchers leading or joining commissioned research projects may, at eligible universities and institutes, have projects with single receipts above RMB 500,000 treated as provincial science and technology plan projects for post assessment and title evaluation.

Artificial intelligence and robotics

Shandong will support "AI plus manufacturing" pioneer applications in chemicals, steel, equipment, and other key fields, with RMB 10 million per year in rewards to qualifying cities. It will build "AI capability centers" across 31 manufacturing categories, with one-off rewards for qualifying centers, and support around 40 smart factory projects each year plus about 30 projects under a smart "scenario voucher" scheme across the province's industrial chains. Around 30 AI terminal products and about 20 innovative robot products—humanoid robots, industrial robots, and key components—are to be supported annually with one-off rewards.

Marine economy and talent

RMB 80 million in local government special bonds will support national marine economy demonstration zones and provincial modern marine industry clusters, focused on supporting infrastructure. In high-end shipbuilding and marine engineering equipment, marine biomedicine, and marine new energy and materials, 10 new Taishan industry leading talent blue teams will be cultivated, with RMB 3–3.4 million per team annually for three consecutive years.

Approvals, Land, and Energy

Environmental assessment flexibility

Cities may apply to expand the pilot linking planning environmental assessments with project assessments to all national-level parks that have completed planning assessments and qualified provincial parks, simplifying individual project procedures. For projects in strategic emerging and future industries—next-generation information technology, new energy vehicles, AI, quantum technology, deep sea/deep earth/deep space, and low-altitude economy—as well as specified manufacturing sectors that require an environmental report form, cities may pilot notification-and-commitment approval.

Land use and construction finance

For approved temporary land, forest, and grassland use for transport, energy, and water projects on national and provincial key project lists, different construction sections may use the land sequentially before reclamation or vegetation restoration expires, subject to provincial confirmation, with cumulative use not exceeding the approved construction period. Construction enterprises may pledge or transfer confirmed project receivables, including PPP projects, with financing ratios set by financial institutions based on asset quality; banks may explore mortgage and pledge lending against receivables, materials, equipment, and trademarks, and bond financing support is increased for green building materials, green buildings, and prefabricated construction.

Pumped-storage pricing

A pumped-storage electricity pricing policy sets benchmark capacity prices for projects starting in 2025–2027: RMB 487.53 per kilowatt-year for 6-hour projects and RMB 459.16 per kilowatt-year for 5-hour projects, tax included. Revenue-sharing ratios for energy and ancillary service markets are set in three tiers, with stations retaining 100% of the portion at or below RMB 100 per kilowatt-year, 55% of the RMB 100–300 portion, and 10% above RMB 300, with the remainder channeled into system operation fees. Parameters will be reviewed after commissioning based on actual investment and market prices.

Other Business-Relevant Measures

• State-owned enterprise hiring: Provincial SOEs are to set campus recruitment plans with graduates at no less than 65% of annual hires and launch autumn 2027 recruitment by end-November.
• Policy fund management rewards: A RMB 50 million fund rewards five cities for effective use of central budget investment, ultra-long special treasury bonds, and new policy financial instruments, with awards of RMB 15 million, 12 million, 10 million, 8 million, and 5 million for shortfall-filling projects.
• Financial-sector linkage: RMB 100 million supports financial services through relending interest subsidies and insurance subsidies.
• Recycling: RMB 100 million supports recycling of scrap steel, copper, and aluminum and guides compliant operations.
• Facility agriculture: From 2026–2028, RMB 300 million annually supports new or upgraded facility agriculture projects in eligible villages.

Practical Takeaways for Foreign Founders

Foreign-invested companies in manufacturing, AI, marine industries, green building, or service sectors may find relevant support among these measures, but eligibility depends on specific implementing rules and project assessment. The environmental assessment pilots and temporary land provisions may shorten approval timelines for qualifying projects. Companies should confirm details with local development and reform, industry, finance, and environmental authorities before planning investments.

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

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