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Shandong's 2026 Policy Package: Opportunities for Foreign Founders

A practical guide for foreign founders on Shandong's second batch of 2026 economic policies, covering consumer incentives, tech and innovation support, and sector-specific funding.

Shandong's 2026 Policy Package: Opportunities for Foreign Founders

The Shandong Provincial Government has issued its second batch of policies for 2026 aimed at stabilizing economic growth and improving quality. The measures, coordinated by the Provincial Development and Reform Commission and other departments, offer funding, incentives, and regulatory flexibility across multiple sectors. For foreign founders registering or operating a company in China, these policies can reduce costs and open new opportunities. Below is a summary of the key measures relevant to business.

Consumer Spending and Cultural Incentives

Shandong is allocating funds to stimulate consumption and support cultural products. Foreign founders in retail, entertainment, or consumer goods may benefit from these initiatives.

• Consumer scene development: The province will provide 40 million yuan to support integrated consumer scenarios, including night-time economy and themed experiences.
• Vouchers: 60 million yuan is allocated for cities to distribute retail and catering vouchers.
• Performance economy: Funding rewards are available for qualifying performance projects, concerts, and music festivals under the "Follow Performances to Tour Shandong" brand.
• Creative cultural products: One-time rewards for market entities that develop hit cultural and creative products, evaluated on originality, artistry, cultural value, social impact, and reach.
• Consumer credit subsidies: The provincial finance department, with central funds, will provide a 1 percentage point interest subsidy on eligible personal consumer loans and credit card installments to lower borrowing costs.

Employment and Talent Support

Foreign companies hiring graduates may find opportunities through state-owned enterprise recruitment drives, though these are primarily domestic.

• Graduate hiring: Provincial state-owned enterprises are encouraged to set recruitment plans with at least 65% of annual hires being university graduates, with autumn recruitment for 2027 graduates starting by end of November.

Investment and Innovation Funding

Shandong is channeling funds to support policy implementation, intellectual property, and research commercialization.

• Policy fund management rewards: A 50 million yuan special fund will reward five cities based on their management of central budget investments, ultra-long-term special government bonds, and new policy financial tools. Rewards range from 5 to 15 million yuan for social welfare and urban renewal projects.
• Intellectual property investment: Support for building provincial concept validation centers and pilot testing bases in fields such as embodied intelligence, brain-computer interfaces, commercial aerospace, industrial mother machines, and high-end software.
• Horizontal research projects: Researchers participating in horizontal projects with funding of 500,000 yuan or more may have such projects treated as provincial science and technology projects for assessment and promotion purposes at eligible universities and institutes.

Marine Economy and Talent Teams

Shandong is boosting its marine sector with bond funding and talent incentives.

• Marine economy demonstration zones: 80 million yuan from local government special bonds will support national marine economy demonstration zones and provincial modern marine industry clusters, focusing on infrastructure.
• Blue talent teams: Ten new Taishan Industry Leading Talent blue teams will be cultivated in high-end shipbuilding, marine engineering equipment, marine biopharmaceuticals, and marine new energy and materials. Each team receives 3 to 3.4 million yuan annually for three years.

Land and Environmental Regulatory Flexibility

Simplified procedures for land use and environmental approvals can accelerate project timelines.

• Temporary land use: For approved temporary land, forest, and grassland use for infrastructure projects, different construction sections may use the same land consecutively before reclamation expires, with cumulative use not exceeding the approved construction period.
• Environmental impact assessment (EIA) linkage: Cities may expand the pilot linking planning EIA and project EIA to all national parks and qualified provincial parks that have completed planning EIA, simplifying individual project EIA procedures.
• EIA notification commitment: For projects in strategic emerging industries (e.g., next-generation IT, new energy vehicles, AI, quantum tech, deep sea/space, low-altitude economy) and certain manufacturing sectors that require EIA reports, cities may pilot a notification commitment system for EIA approval.

Construction and Financial Support

Financial tools are available to improve liquidity for construction companies.

• Accounts receivable financing: Construction companies may pledge or transfer confirmed project receivables (including PPP projects) as assets, with financing ratios determined by financial institutions based on asset quality. Banks are encouraged to explore loans backed by receivables, materials, equipment, and trademarks, and to increase bond financing support for green building materials, green buildings, and prefabricated construction.

Energy Pricing and Service Industry

Stable pricing and incentives aim to boost investment and service sector growth.

• Pumped storage pricing: 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: 100% retained up to 100 yuan/kW·year, 55% for 100-300 yuan/kW·year, and 10% above 300 yuan/kW·year, with the remainder directed to system operation fees. Parameters will be reviewed after operation based on actual investment and market prices.
• Service industry incentives: 100 million yuan to reward cities with outstanding service sector performance in the first three quarters, up to 20 million yuan per city.
• Platform economy: About 90 million yuan in subsidies for qualifying service platform enterprises based on brand building and enhancement plans.
• "Shandong Service" brand: 150 million yuan to support brand creation for micro and startup enterprises, and 50 million yuan to support brand enhancement in business services (accounting), trade circulation, and testing and inspection.
• New service sector projects: Funding for qualifying projects in emerging services (AI services, R&D, testing and certification, agricultural social services), key producer services (internet wholesale, professional markets, multimodal transport, warehousing), and consumer services (culture and tourism, health, broadcasting, digital entertainment).
• Financial-industry integration: 100 million yuan for re-lending interest subsidies and insurance subsidies to support the financial services industry.
• Recycling industry: 100 million yuan to support recycling of key resources like scrap steel, copper, and aluminum, guiding standardized operations.

AI and Robotics in Manufacturing

Shandong is heavily promoting AI adoption in manufacturing with awards and subsidies.

• "AI+Manufacturing" pilot: Annual awards of 10 million yuan to qualifying cities for pioneering AI applications in chemicals, steel, equipment, and other key sectors.
• AI capability centers: One-time subsidies for qualifying "AI capability centers" across 31 manufacturing categories, with the goal of full coverage in key categories.
• Smart factories: Support for about 40 smart factory projects annually that demonstrate significant AI application and multi-scenario implementation, with one-time subsidies. Additionally, about 30 projects annually will receive "scenario vouchers" for intelligent manufacturing applications across 19 signature and 67 key industrial chains.
• AI terminal products: Annual support for about 30 AI terminal products with one-time subsidies.
• Robotics: Annual support for about 20 innovative products in humanoid robots, industrial robots, and key components, with one-time subsidies to enhance application in typical manufacturing scenarios.

Modern Agriculture

Funding is available for agricultural modernization.

• Facility agriculture: From 2026 to 2028, 300 million yuan annually to support eligible villages in building or upgrading facility agriculture projects.

Foreign founders can leverage these policies when setting up or expanding operations in Shandong. For assistance with company registration and ongoing compliance 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.