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Construction Industry |
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Successive Chinese National Government Five-Year Plans have stipulated that the construction industry must be promoted, through design standard improvements and increased levels of design, construction and management.
The construction market should be reformed, rectified and standardized to guarantee quality construction projects and implement new construction methods and materials.
Over the course of the last 20 years, China's construction industry has undergone a huge development. The construction sector's main goals over these years have been centered around:
- A more standardized construction market
- A construction project price-management system that fits the requirements of the market economy
- A solid organization and management framework has been established;
- An increase in quality construction projects, mainly residencial,
- The Chinese construction industry's position and market share on the international contract market has increased dramatically
- Structuring a legal framework for the industry
Some facts and figures
China's construction industry achieved 646.2 billion Yuan in total output value in 2001, accounting for 6.7 percent of the nation's Gross Domestic Product (GDP).
China's construction industry realized 704.7 billion Yuan in total output value in 2002 -- an increase of 10.54 percent from the previous year's 637.5 billion Yuan -- accounting for 6.9 percent of the national GDP.
Construction enterprises reached 45,893 by the end of 2001, employing 21,106,600 people and generating 1,536.156 billion Yuan in output value and 402.357 billion Yuan in added value.
Areas under construction totaled 1,883,286,800 square meters; completed areas covered 976.99 million square meters. Profits totaled 29.439 billion Yuan in the year, with taxes at 49.903 billion Yuan.
Of these enterprises, 44,997 were Chinese with 20,986,800 staff members. The companies reaped 1,518.595 billion Yuan in output value in 2001 and 398.022 billion Yuan in added value.
Industrial structure:
The construction industry's total output value was 1,536.156 billion Yuan in 2001.
Of that amount,
1348.595 billion Yuan was generated by civil engineering, which accounted for 87.79 percent of the total;
1008.601 billionYuan by housing construction;
13.396 billion Yuan by mine construction and
219.832 billion Yuan in the construction of railways, tunnels, highways and bridges, accounting for 65.66, 0.87 and 14.31 percent of the total respectively.
The output value of wire lines, pipelines and equipment installation was 138.044 billion Yuan -- 8.99 percent of the total, including 68.81 billion Yuan from equipment installation -- 4.48 percent of the total.
The output value of building retrofitting and decorations was 49.518 billion Yuan -- 3.22 percent of the total.
The construction industry has maintained a strong level of development in China in recent years demonstrating a higher growth than that of the gross national product. The industry's output value increased 10.19 percent in 1997, 10.25 percent in 1998, 10.84 percent in 1999, 12.06 percent in 2000 and 22.91 percent in 2001.
With the steady development of the national economy, the construction industry will continue its momentum of growth in the coming years.
Some development plans for the three municipalities of China over recent years have been:
Beijing will invest 800 billion Yuan in fixed assets;
Shanghai, 1,000 billion Yuan, including 400 billion Yuan in key construction projects;
and Chongqing, 520 billion Yuan.
At the same time, the country plans to inject more than 240 billion Yuan into 107 key infrastructure facility construction projects in West China.
South China's Guangdong Province, for example, is expected to invest 383.2 billion Yuan in fixed assets in 2002.
B
ased on the above figures, the total investment scale of China's major provinces and cities will reach 4 trillion Yuan in the coming five to 10 years. (Source: China Statistical Yearbook 2002)
So how can Link China assist your business within the Chinese Construction Market?
• Close connection with top ranking construction companies
• Real project experience
Link China’s Services:
• Search for and introduce high profile Chinese construction companies
• Assist in project negotiation
• Assist in tendering procedures
* Facilitate introductions with industry leaders
* Partner your comapny up in China
• Legal consulting throughout the project
To send us your inquiry on construction industry or to learn our experiences in construction industry, please contact us.
