Bustling metropolis bucks national trend

Although China's economy has experienced a slowdown in recent years, the city of Yantai has been racing forward at a breakneck pace.

According to the local government, Yantai's GDP grew by nearly 10 percent annually from 2008.

This figure, in part, is owed to the increasingly strong relationship between China and the Republic of Korea.

Before coming to Yantai, I had heard little of the trade relationship between China and the ROK. I knew about the Free Trade Agreement, which was officially signed in 2015, but wasn't aware of the extent of the relationship.

After seeing it first hand, I now realize that Yantai has developed into a remarkable center for international trade. The partnership has seemingly seeped into every corner of the city, surfacing in industry, culture and even education.

Perhaps the most impressive example of this growth is the China-ROK Yantai Industrial Park. The zone was set up to maximize the effects of the FTA, and allows companies that set up inside it to enjoy favorable tax policies.

In the park, we were able to visit huge and successful South Korean companies, including LG's display manufacturer in Yantai and a Doosan Infracore plant. Both companies cited the economic benefits that had resulted from the FTA.

The quality of companies that have already been working in the industrial park has lead me to believe that this trade deal will only get stronger. If ROK companies continue to invest in Yantai, then I can see this deal boosting the economies of both nations.

And why wouldn't they invest? Yantai officials said they aim to make Yantai as hospitable and welcoming as possible for ROK investors.

For example, the city now boasts the Korea School in Yantai. Many businesspeople from the ROK living in the city like to send their children to this international school, and its curriculum integrates traditional Korean schooling with Chinese and English language teaching.

One of the most ambitious elements of this relationship is the Korea Town project in Yantai. Though it is currently a 20-square-kilometer construction zone, it will eventually include residential properties and will also be home to numerous companies from the ROK. The target date for completion of the project is 2026, and I was astounded by its sheer scale.

Along the seaside, the Port of Yantai is another integral component in the China-ROK relationship.

Huang Shuren, deputy head of Yantai International Container Terminals Co Ltd, said that in the first five years of his job, he saw about 10 percent growth every year. Since China's overall economic slowdown, the port's growth has decreased to about 4 to 5 percent.

However, Huang said that between January and June this year, business was on the rise again, with a 10 percent increase in trade with the ROK. The port handles 13 ships sailing to and from the ROK per week, exporting industrial products, garments and food.

Equally impressive is the Yantai-Dalian railway ferry. From the port in Yantai, a large ferry boat with a hollowed-out interior is capable of loading freight trains. Railroad tracks run from Yantai, right up the dock, and into the belly of the ferry boat.

Though it only ships between Yantai and Dalian at present, ferry port general manager Liu Jun hopes that Yantai will soon develop a relationship with a ROK port city. If this happens, Liu claims the time it would take to ship goods from the Xinjiang Uygur autonomous region to the ROK would be halved.

At the end of the day, there was not one specific business or facility we visited that impressed me most. Instead, I was surprised by how far-reaching the China-ROK relationship is. Within Yantai, there are so many separate aspects working towards the same goal of improving the economies of both nations through trade.

Contact the writer at iancallison@chinadaily.com.cn

(China Daily 07/07/2016 page12)