Manufacturing is the foundation of Qingdao's economy, said local authorities at a recent news conference, which underlined the city's progress and achievements in transforming and upgrading the manufacturing sector during the 13th Five-Year Plan period (2016-20).

Over the past five years, the city's industrial economy has been running smoothly while its quality and efficiency have been gradually improved.

The coastal city of Qingdao boasts a vibrant economy. [Photo provided to chinadaily.com.cn]

For two consecutive years, Qingdao has been rated as a "city with remarkable achievements in industrial steady growth and transformation and upgrading", and has been encouraged by the State Council.

From 2016 to 2019, the city's industrial added value above designated size grew by more than 5 percent annually. In 2019, its industrial added value reached 315.99 billion yuan ($48.31 billion), accounting for 26.9 percent of the city's GDP. The city currently has 3,560 industrial enterprises above designated size.

Industrial investment has maintained rapid growth over the period. In 2019, the city's industrial investment grew by 20.2 percent year-on-year, hitting a six-year high and reversing a 21-month decline that spanned from 2017 to the third quarter of 2018.

The quality of industrial development has also been improved. In 2019, the added value of industrial strategic emerging industries accounted for 31.8 percent of the industrial added value above designated size, an increase of 11.7 percentage points over 2015.

The city has received approval to build the country's second "artificial intelligence innovation application pilot area" and the fifth "China's Famous Software City".