Located in East China's Shandong province, the coastal city Yantai is building a outsourcing base for services that targets markets in the Asian-Pacific region.

"We expect more companies from Hong Kong to join us in developing the outsourcing industry," said Yang Li, the vice-mayor of Yantai, at the city's trade and investment promotion in Hong Kong.

Yang emphasized that Yantai's geographical advantages make it part of two national strategies for regional development - the Yellow River Delta High Efficiency Ecological Economic Zone and the Marine Economic Zone on the Shandong Peninsula - which gives the city great potential to develop its outsourcing industry.