Published by ChinaMNC · Huangmei

Shandong’s 2026 Policy Package: What Foreign Founders Operating in China Should Know

A practical overview of Shandong Province’s second 2026 policy list, covering consumer incentives, industrial upgrading, environmental approvals, financing support and talent measures relevant to foreign-invested companies.

Shandong Releases Second 2026 Policy Package for Economic Stability and Upgrading

The Shandong Provincial People’s Government has issued the second batch of its 2026 policy list aimed at promoting steady economic progress and improving quality and efficiency. The document was released with the agreement of the provincial Party committee and government and asks local authorities to implement the measures according to local conditions.

The package follows central government decisions on stabilising the economy, expanding domestic demand, improving supply and removing bottlenecks. It is also intended to support the province’s role as a major economic contributor during the opening year of the 15th Five-Year Plan period. For foreign founders registering or operating a company in China, the list signals where provincial funding, approvals and industrial support may be available in Shandong.

Consumer Demand and Service Sector Measures

Several measures aim to stimulate consumption and support service businesses. The province will raise RMB 40 million to support new consumption scenarios that combine multiple formats, feature specific themes or focus on nighttime economic activity. A further RMB 60 million will help cities issue retail and catering consumption vouchers.

Shandong also encourages the development of the performance economy and the “Follow Performances to Tour Shandong” brand, covering music, film and animation. Cities may develop distinctive, differentiated and long-term tourism performance projects. Eligible organisers of approved premium tourism performances, concerts and music festivals can receive financial rewards.

Businesses developing cultural and creative products may apply for one-off rewards after a comprehensive evaluation covering originality, artistic quality, cultural value, social influence and communication impact. In addition, the province will implement an interest subsidy policy for eligible personal consumer loans and credit card instalments, with the provincial finance department coordinating central funds to provide a one-percentage-point subsidy. This is intended to lower consumer credit costs and release household consumption potential.

For the service sector, Shandong will raise RMB 100 million to incentivise cities with strong service-industry performance in the first three quarters, with a maximum subsidy of RMB 20 million per city. About RMB 90 million will support eligible service-sector platform enterprises following an evaluation of brand-building foundations and brand-improvement plans.

The province will also allocate RMB 150 million to support brand creation by early-stage and seed-stage small and micro enterprises, and RMB 50 million to support brand upgrading in segments such as business accounting services, trade circulation and inspection and testing.

Support for Emerging Services and Industrial Upgrading

Shandong plans to support quality projects in emerging service areas including artificial intelligence services, scientific research, inspection and testing certification, and agricultural social services. Support also covers producer services such as internet wholesale, specialised markets, multimodal transport and warehousing logistics, as well as service consumption areas including culture and tourism, health and elderly care, broadcasting and film, online audiovisual and digital performances. Eligible projects can receive financial subsidies.

To connect finance and industry, the province will raise RMB 100 million and use methods such as re-lending interest subsidies and insurance subsidies to support the financial services sector.

In manufacturing, Shandong will support cities in running “AI plus manufacturing” pioneer application programmes in chemicals, steel, equipment and other key fields. Eligible cities can receive RMB 10 million per year in awards and subsidies. The province also plans to build “AI capability centres” across 31 major manufacturing categories, with one-off awards for eligible centres and a goal of gradually achieving full coverage across key manufacturing categories.

Each year, around 40 smart factory projects that use artificial intelligence effectively and implement it in multiple scenarios will receive one-off awards. Around 30 projects per year will receive “scenario vouchers” to promote mature, replicable intelligent manufacturing applications across the province’s 19 landmark industrial chains and 67 key industrial chains.

The province will also support around 30 AI terminal products each year and around 20 innovative products in humanoid robots, industrial robots and key robot components. Eligible products can receive one-off awards, with the aim of increasing robot use in typical manufacturing scenarios.

Investment, Environmental Approvals and Land Use

Shandong will establish a RMB 50 million policy fund management award programme. It will assess cities’ management of central budget investment, ultra-long special treasury bonds and new policy financial instruments in 2026. Five cities with good results, fast progress and clear comprehensive benefits will receive RMB 15 million, 12 million, 10 million, 8 million and 5 million respectively, to support social welfare, urban renewal and other projects that address shortcomings.

To promote investment in intellectual property products, the province will build provincial concept validation centres and pilot-testing bases in key areas such as embodied intelligence, brain-computer interfaces, commercial aerospace, industrial mother machines and high-end software. Eligible projects will receive policy support in accordance with regulations.

Research personnel are encouraged to lead or participate in commissioned research projects. At qualified universities and research institutes, a single commissioned project with at least RMB 500,000 in received funding may be treated as equivalent to a provincial science and technology plan project for job assessment and professional title evaluation.

For infrastructure projects in transport, energy and water conservancy included in national and provincial key project lists, approved temporary land, forest and grassland use may, before the reclamation or vegetation restoration period ends and after provincial confirmation, be used successively by different construction sections. The cumulative use period may not exceed the approved construction cycle.

Cities may apply to expand the pilot linking planning environmental impact assessments with project assessments to all national-level parks that have completed planning assessments and qualified provincial-level parks. This is intended to give planning assessments a stronger macro guiding role and simplify environmental approval procedures for individual construction projects.

For projects in strategic emerging and future industries such as next-generation information technology, new energy vehicles, artificial intelligence, quantum technology, deep sea, deep earth and deep space, and the low-altitude economy, as well as specified manufacturing sectors, cities may pilot notification-and-commitment environmental approval for projects requiring an environmental impact report form, provided they meet national policies and planning assessment requirements.

Finance, Energy, Talent and Agriculture

Shandong will increase financial support for construction enterprises. Companies may pledge or transfer receivables from confirmed engineering projects, including PPP projects, with financing ratios determined by financial institutions based on asset quality. Banks are supported in exploring mortgage and pledge lending against receivables, building materials, engineering equipment and trademark rights. Bond financing support will be increased for eligible green building materials, green buildings and prefabricated buildings.

The province will formulate a pumped-storage hydropower pricing policy to stabilise investment expectations. Projects starting between 2025 and 2027 will receive benchmark capacity prices of RMB 487.53 per kilowatt-year for six-hour projects and RMB 459.16 per kilowatt-year for five-hour projects, including tax. Revenue-sharing ratios for electricity energy and ancillary service markets will be set in three tiers. After projects begin operation, relevant price parameters will be reviewed based on actual investment and market prices.

State-owned enterprises under provincial supervision will expand recruitment of university graduates. In principle, they will set campus recruitment plans with graduates accounting for no less than 65% of annual hires, and will conduct autumn recruitment for the 2027 graduating class before the end of November.

For the marine economy, RMB 80 million in local government special bond funds will support national marine economic development demonstration zones and provincial modern marine industry clusters, focusing on supporting infrastructure. In key areas such as high-end ship and offshore engineering equipment manufacturing, marine biomedicine and marine new energy and new materials, 10 new Taishan industry leading talent blue teams will be cultivated. The province will raise funds to provide each team with RMB 3 million to 3.4 million per year for three consecutive years.

Finally, from 2026 to 2028, Shandong will raise RMB 300 million annually to support eligible villages in building or renovating agricultural facility projects.

Practical Takeaways for Foreign Founders

• Consumer-facing businesses: City-level voucher programmes and support for new consumption scenarios may create partnership or promotion opportunities.
• Technology and manufacturing companies: AI, robotics, smart manufacturing and emerging industry measures indicate where provincial awards and pilot programmes are directed.
• Project developers: Environmental approval pilots and temporary land-use arrangements may affect project timelines, subject to local implementation.
• Service and platform companies: Brand-building and platform economy subsidies may be relevant to eligible local entities.
• Investors in energy and marine sectors: Pumped-storage pricing and marine industry measures provide policy signals, but detailed conditions should be confirmed with local authorities.

Foreign founders should note that these are provincial policy measures, and eligibility, application procedures and local implementation rules will be determined by the responsible departments. Companies should verify current requirements with the relevant city or provincial authority before making investment decisions.

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

Foreign founders seeking help registering and operating a company in China can contact ChinaMNC on WhatsApp or WeChat at +86 153 1898 8535.