Best known for its Tsingtao Brewery, Qingdao has bragged one of the fastest GDP growths among cities in China during the last decade. Qingdao's economic success has been bolstered by flourishing local business and large foreign direct investment, due in part from geographic proximity to Japan and Korea and cultural ties as a former German colony. Qingdao is also a significant as coastal port city, with the country's fifth-largest and the world’s seventh-largest seaport.
Pillar industries consist of electronics, petrochemicals, automobiles, machinery, metallurgy, building materials, biopharmaceuticals, textiles and garments, and food- and beverage-processing. Taking advantage of national policies, particularly tax deductions on fixed asset spending, Qingdao has announced a three-year initiative to boost technology upgrading in the city's enterprises. Additionally, the city appears to be advancing in high-tech production, which already accounts for almost half of its industrial sector.
Qingdao's GDP grew 10.6% RMB730.2 billion in 2012.