1. Early foreign trade with a long history
Longkou City is located in the northwest of Jiaodong Peninsula, facing the Bohai Sea to the north. In addition, it has been the “hometown of silk”, “hometown of wheat”, “hometown of smelting and pottery making” in history, with abundant products. Therefore, foreign trade activities based on the ancient Huangheying Port have a long history. Historical records can be traced back to the Shang and Zhou Dynasties. After that, through the Qin, Han, Wei, Jin, Sui, Tang, and Ming Dynasties, the Huangheying Port, one of the six famous ports in ancient China, has always been an important foreign trade port in northern China. During the Qianlong and Jiaqing years of the Qing Dynasty, the import and export trade of the Huangheying Port was prosperous. A large number of merchant ships frequently traveled, and import and export goods piled up all year round. The Qing government once set up a customs office here to manage ships entering and leaving and collect tariffs. At that time, the vermicelli produced in Huangxian had been exported to Japan, North Korea, Russia, Southeast Asia, South Africa, America and other countries and regions.
In the late Qing Dynasty and the early Republic of China, the Huangheying Port was gradually abandoned, and it was replaced by Longkou Port, which is known as the “stable oil basin” on the western coast. Longkou, in 1388 AD (during the Hongwu period of the Ming Dynasty), Xu Huizu, Duke of Wei, built Longkoudun here. This is the earliest record of the place name Longkou in history. This place was originally a sandy net field for coastal fishermen, famous for its “rich fishery products”. Since the Qing Dynasty, merchants from Zhi, Feng, Jiangsu and Zhejiang provinces have frequently come here to sell fish. “Northern ships must bring grain and wine, and southern ships must bring paper and sugar.” “It is concentrated in the market, and it is known from both north and south.” At that time, the products exported through Longkou Port included vermicelli and fish, as well as long-handled pears. According to relevant records, Longkou vermicelli was exported to Hong Kong three years earlier than Zhifu Port, the earliest port on the Shandong Peninsula, and it was the first record of Shandong products exported to Hong Kong. In 1914, Longkou Port was opened as a commercial port, and Longkou “became prosperous”, with frequent import and export ships from home and abroad, and ships often passed through Longkou Port. In 1935, the port had 2,550 import and export ships, and had traded with more than 30 countries and regions, with an annual throughput of 677,000 tons.
The development of import and export trade has promoted local commerce and handicrafts. In the late Qing Dynasty and early Republic of China, there were more than 50 vermicelli shops in Longkou, which was the largest among all industries in Longkou. By the 1920s and 1930s, “there were more than a thousand vermicelli shops in Huangxian, and the raw materials of mung beans were about 300,000 stones.” In order to promote the export of Huangxian pears, Chi Dewen of the Chi family in Moshan raised funds in 1934 to establish a pear shop and set up the “Huangxian Shuangshengfu Local Products Shop”, which transported Huangxian pears to Longkou Wharf, and then shipped them to Hong Kong and other places, where they set up shops for sale. They also paid attention to brand awareness and pioneered the “Shuangshiqiu” Chinese and English export trademarks to promote agricultural products such as long-handled pears and Longkou vermicelli to the international market.
2. Gradual foreign trade in the early days of the founding of New China
After the founding of New China, due to the planned economy and backward productivity, the country’s foreign trade exports during this period were mainly agricultural and sideline products and mineral resources. Longkou City, which is mainly agricultural, exported Longkou vermicelli and local specialties at that time. In the 1950s, there was only one Longkou Business Group of Yantai Native Products Import and Export Company responsible for foreign trade exports in Longkou City, with a total of “more than a dozen people and seven or eight guns”. Throughout the 1950s, the total value of Longkou’s foreign trade exports in the highest year was only 816,000 yuan. There was only one variety, Longkou vermicelli, with an export volume of 540 tons. After entering the 1960s, the Longkou Business Group of Yantai Native Products Import and Export Company was transformed into a foreign trade enterprise, responsible for the purchase, storage and transportation of vermicelli and other local products in Zhaoyuan County, Penglai County, Huang County, Ye County, Qixia County and Fushan County. The total export value in 1961 was 1.2362 million yuan. After the three-year economic recovery period, with the development of the economy, the import and export varieties and quantities of Longkou area also increased year by year. By 1974, the export commodities operated by Longkou foreign trade system increased to 66 varieties in 6 categories, and the total export value reached 28.7 million yuan. In 1975, in order to adapt to the development of foreign trade, the Huangxian County Government established a trade bureau to strengthen the leadership of this work. Since then, foreign trade work has developed steadily compared with the past. By 1978, the total value of Huangxian’s foreign trade exports reached 330.928 million yuan, ranking among the top counties and districts in Yantai City.
3. Rapid development of foreign trade from the Third Plenary Session of the 11th Central Committee to the end of the 20th century
After the reform and opening up, Longkou City’s foreign trade ushered in a new spring. The scale of trade continued to expand. In 1985, Longkou Port was opened to the outside world, and Longkou people set their sights on the world stage for economic take-off. After the county was abolished and the city was established in 1987, the Huang County Foreign Trade Bureau was renamed Longkou Foreign Trade Company (Bureau), and the government and enterprises were integrated. The CPC Longkou Municipal Committee and the Municipal Government judged the situation and made a strategic decision to take foreign trade as the “leader” and organize the “chorus” of the city’s commodity economy, playing a new chapter in the prosperity of Longkou’s economy. By the end of 1991, Longkou’s foreign trade export products had developed to more than 140 varieties in 13 categories such as grain and oil, food, local products, livestock, machinery, chemicals, and technology. Longkou vermicelli alone was exported to 81 countries and regions.
4. Rapid and unusual foreign trade since the new century
In 2000, Longkou City’s foreign trade exports reached 105 million US dollars, breaking the 100 million US dollar mark for the first time, which was a new breakthrough in the city’s foreign trade history. In 2001, the export volume was 136 million US dollars, a year-on-year increase of 29.2%, of which agricultural and sideline products exports were 54.61 million US dollars, electromechanical products exports were 33.98 million US dollars, and textile and clothing exports were 15.56 million US dollars. The companies that made great contributions to exports that year included Haimeng Machinery and Fufa Zhongji. Haimeng Machinery Co., Ltd. was established in April 1997 and is a professional manufacturer engaged in automotive brake series products. It has 2,400 employees and its leading products include automotive brake discs, brake hubs, brake shoes, wheel hubs and axles. Three months after the company went into production, it achieved a breakthrough in export earnings, and its products were sold to North America, achieving the first foreign exchange earnings of 27,747.89 US dollars, and the development momentum was unstoppable, constantly creating miracles for private enterprises. In that year, Longkou Haimeng Machinery Co., Ltd. exported 11.8 million US dollars, and its auto parts such as brake discs and brake pads have been sold to more than 30 countries and regions in America, the Middle East, Asia, Europe, etc. In that year, Longkou Fufu Zhongji Refrigeration Co., Ltd. also exported 9.12 million US dollars, and its processed fresh fruits were exported to the United Kingdom, Indonesia, Singapore, Thailand, Malaysia, Arabia, Bangladesh, Hong Kong and other countries and regions. Longkou Long-handled pears and Longkou-produced “Yantai apples” became famous.
In 2001, the import and export situation of the whole city was gratifying. The total import and export volume of Longkou Xinlong Edible Oil Co., Ltd., Longkou Zhenlong Alcohol Co., Ltd., Longkou Deshan Garment Co., Ltd. and other enterprises also exceeded 10 million US dollars.
In November 2001, China joined the WTO, and foreign trade entered a new milestone. Taking advantage of the favorable conditions of China’s accession to the WTO, Longkou’s foreign trade has entered the world economic cycle, and an unprecedented and gratifying situation has emerged. From China’s accession to the WTO to 2006, Longkou’s foreign trade developed rapidly. During this period, the city’s foreign trade imports and exports have been showing a good trend of step-by-step growth. By the end of 2006, the city’s total foreign trade imports and exports reached 1.084 billion US dollars, becoming the first county in Yantai to exceed 1 billion US dollars. A group of newly emerging import and export companies have made outstanding contributions to the city’s foreign trade.
The total import and export volume of Donghai Trading Co., Ltd. under Nanshan Group reached 190 million US dollars, accounting for nearly 20% of the city’s total import and export volume. The total import and export value doubled over the previous year, becoming the first company in Longkou with a total import and export volume of more than 100 million US dollars, and the total import and export volume has been ranked first in the city in the next few years. Nanshan Group’s import and export business began in the early 1990s. The initial imported products were mainly acrylic fiber tow and production equipment for self-use, and the exported products were acrylic pillows, bath towels, towels, blankets, and blankets. At that time, the export business was mainly operated by foreign trade companies. Since 1993, Longkou Huaguan Textile Co., Ltd., a Sino-foreign joint venture under Nanshan Group, has been engaged in a large number of processing trade businesses, importing acrylic fiber tow and exporting acrylic towel and quilt products. Since 1996, the company has invested heavily in the worsted industry, golf industry and wine industry, and imported a large number of the world’s most advanced self-use production equipment. After 2000, with the increase in the company’s export business and the implementation of the company’s sustainable development strategy, the company established its first company with import and export rights in 2001 – Longkou Donghai Trading Co., Ltd., which exported 110,000 US dollars that year. All the company’s towel and blanket product export business is handled by Donghai Trading, and the company established its first textile export department. With the rapid improvement of the production scale and quality level of Nanshan Worsted Mill, the company began to export fabrics in 2002, and later added clothing products, and established the second export department – Worsted Export Department. At the same time, in order to improve product quality and enhance price competitiveness, a textile wool import department was established. In 2002, Longkou Donghai Trading Co., Ltd.’s export volume reached 5.19 million US dollars. After 2004, with the strategic development of the aluminum industry chain, the export products increased to aluminum ingots, aluminum profiles, aluminum plates, strips, and foils. For this purpose, the company successively established the aluminum export department, aluminum material export department, aluminum alloy import and export department, and alumina import and export department. The export volume reached 140.87 million US dollars that year. In order to adapt to the rapid development of Nanshan Aluminum, the company began to import bauxite from Australia and Indonesia. In order to improve the company’s structure, the company established its second trading company in 2009-Yantai Jintai International Trade Co., Ltd., which is mainly responsible for the import and export business of Nanshan Aluminum’s aluminum products. With the increase of import and export business, the company has successively established 7 import and export departments according to different industries and products, mainly engaged in the export of the company’s aluminum products, fine fabrics and clothing, and the import of wool, bauxite, equipment and spare parts.
According to statistics, in 2006, there were 26 enterprises in Longkou City with a total import and export volume of more than 10 million US dollars. Among them, 18 enterprises with export value exceeding 10 million US dollars include Longkou Donghai Trading Co., Ltd., Longkou Haimeng Machinery Co., Ltd., Longkou Fanlin Cement Co., Ltd. and Longkou Zhenlong Ruiming Alcohol Co., Ltd.; 8 enterprises with import value exceeding 10 million US dollars include Longkou Xinlong Edible Oil Co., Ltd., Longkou Donghai Trading Co., Ltd., Shandong Dawn Group Co., Ltd. and Longkou Zhenlong Ruiming Alcohol Co., Ltd. After the international economic crisis in 2008, Longkou’s foreign trade development has entered a relatively sluggish stage that has not been seen in many years, and the growth rate of imports and exports has declined. However, the severe international economic development environment has not stopped the pace of the city’s foreign trade. After experiencing twists and turns in 2009, Longkou’s foreign trade has gradually become mature and stable, and is moving towards another peak. By the end of 2012, Longkou’s annual foreign trade import and export volume once again surpassed itself and broke through the 3 billion US dollar mark. The city’s import and export enterprises with value exceeding 100 million US dollars are no longer a single flower, but a situation of many flowers blooming in spring. Yantai Jintai International Trade Co., Ltd., Bingang Liquid Chemical Terminal Co., Ltd., Donghai Trade Co., Ltd. and Haimeng Machinery Co., Ltd. all have a total import and export volume of over 100 million US dollars, becoming the four major carriages driving the development of the city’s foreign trade. At this time, Longkou’s main export products have also transformed from low-tech local specialties before the reform and opening up to high-tech and greater added value auto parts, aluminum and aluminum products, agricultural and sideline products, chemical building materials, textiles and clothing, etc.; product sales have also radiated from neighboring Southeast Asian countries to all parts of the world; raw material supply has also shifted from domestic to global procurement, and has become the leader of foreign trade in Yantai.
If Longkou’s foreign trade was still a young tree at the beginning of the founding of New China, then after the Third Plenary Session of the Eleventh Central Committee to the end of the 20th century, foreign trade has grown into a big tree, and since the beginning of the new century, it has entered a period of prosperity. We firmly believe that the towering tree of Longkou’s foreign trade will flourish and bear abundant fruits every year under the cultivation of the people of Longkou!
