Qingdao is a famous open harbor city and a contemporary industry, sea research, foreign trade and tourism city. It enjoys the advantages of province-level economic administration.

Qingdao is the largest industrial base in Shandong Province, boasts powerful economic strength. In 1996, the value of industrial output increased by RMB 20.6 billion comparing the previous year. Qingdao is an important base of light industry and of the textile and chemical industries.