Construction Outlook in China

Construction expenditures in China will be fueled through 2023 by continued industrialization, rising urban population and consumer income levels, and greater foreign investment funding.

Expenditures to rise nearly 9% annually through 2018

Construction expenditures in China are expected to rise 8.9 percent per annum in real terms through 2018. Ongoing indus-trialization, increasing urban population, expanding foreign investment funding, rising personal income levels, and further population and household growth will all work to drive gains in construction activity in China. In addition, government efforts to improve the country’s infrastructure, expand municipal utilities, and balance regional economic disparity will aid growth in construction spending. However, further growth will be constrained by a slowdown in the Chinese economy through the forecast period, especially in fixed asset investment.

Northwest region to grow most rapidly

Although China is a single country, it consists of numerous distinct regional markets, each characterized by different climates, populations, and levels of economic development. Construction expenditures in the Northwest region are expected to enjoy the fastest growth of any region in China, rising 9.9 percent per annum in real terms through 2018. Gains will benefit from the government’s “Great Western Development” strategy and the region’s abundant natural resources, which will result in sizable increases in spending on infrastructure and manufacturing facilities in this area. However, the Central-East region, being home to about one-third of the country’s total population and economic output, will remain the largest regional market, accounting for 43 percent of the overall construction spending in China in 2018.

Domestic spending on manufactured goods to fuel nonresidential building

Nonresidential buildings represented the largest segment of the construction market in China in 2013, accounting for 37 percent of overall construction spending. Nonresidential construction expenditures are forecast to rise 9.2 percent annually in real terms through 2018, continuing to lead the market. Gains will be driven by robust increases in consumer spending for manufactured goods and services from both at home and abroad, as well as increasing foreign direct investment.

Government efforts, change in demographics to bolster residential construction

Residential construction expenditures accounted for slightly more than one-third of overall construction spending in China in 2013. Residential building construction activity will be spurred by rising personal income levels and household growth as well as population migration from rural to urban areas. Government efforts to improve living conditions for low income earners (including the construction of affordable and low rent houses in urban areas and subsidies for improvements to dilapidated farmhouses in rural areas) will also bolster residential building construction spending.

Study coverage

This Freedonia industry study analyzes the 15.9 trillion yuan construction industry in China. It presents historical demand data (2003, 2008 and 2013) and forecasts (2018 and 2023) by market (residential building, nonresidential building, nonbuilding) and geographic region (e.g., Central-North, Northeast, Central-East). The study also considers market environment factors, details industry structure, evaluates company market share, and profiles 38 industry participants, including China State Construction Engineering, China Railway Construction, and China Railway Group.

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Purchase Construction Outlook in China by the Section

  1. Construction Outlook in China

    $5,300.00

    1. 1 INTRODUCTION

      $225.00

    2. 2 EXECUTIVE SUMMARY

      $183.00

      1. Table | CONSTRUCTION EXPENDITURES IN CHINA

    3. 3 MARKET ENVIRONMENT

      $2,615.00

      1. 3.1 General

        $89.00

      2. 3.2 Economic Overview

        $398.00

        1. 3.2.1 Recent Economic Performance

          $134.00

        2. 3.2.2 Economic Outlook

          $240.00

          1. Table | GROSS DOMESTIC PRODUCT OF CHINA

      3. 3.3 Demographic Overview

        $314.00

        1. 3.3.1 Population

          $144.00

          1. Table | POPULATION OF CHINA

          2. CHART II-1 POPULATION OF CHINA BY AGE, 2003-2023

        2. 3.3.2 Urbanization

          $82.00

        3. 3.3.3 Households

          $82.00

          1. Table | HOUSEHOLDS IN CHINA BY REGION

          2. CHART II-2 HOUSEHOLDS IN CHINA BY REGION, 2003-2023

      4. 3.4 Industrialization & Manufacturing Trends

        $158.00

        1. Table | MANUFACTURING VALUE ADDED IN CHINA

      5. 3.5 Gross Fixed Capital Formation Trends

        $97.00

        1. Table | GROSS FIXED CAPITAL FORMATION IN CHINA BY REGION

      6. 3.6 Labor Force & Employment Patterns

        $162.00

        1. Table | EMPLOYMENT TRENDS IN CHINA, 2003-2013

        2. CHART II-3 EMPLOYMENT TRENDS IN CHINA, 2003-2013

      7. 3.7 Personal Income Trends

        $163.00

        1. Table | PER CAPITA GROSS DOMESTIC PRODUCT IN CHINA BY REGION

        2. CHART II-4 PER CAPITA GROSS DOMESTIC PRODUCT IN CHINA BY REGION, 2013

      8. 3.8 Banking System & Regulations

        $279.00

        1. Table | INTEREST RATES IN CHINA, 2003-2013

      9. 3.9 Currency Exchange Rates

        $141.00

        1. Table | CHINESE CURRENCY EXCHANGE RATES, 2003-2013

        2. CHART II-5 CHINESE CURRENCY EXCHANGE RATES, 2003-2013

      10. 3.10 Inflation & Pricing Patterns

        $157.00

        1. Table | CONSTRUCTION PRICING DEFLATORS IN CHINA

      11. 3.11 Legal & Regulatory Environment

        $295.00

      12. 3.12 Construction Technology & Quality

        $168.00

      13. 3.13 The Twelfth Five-Year Plan

        $192.00

    4. 4 OVERVIEW

      $672.00

      1. 4.1 General

        $82.00

      2. 4.2 Construction Expenditures by Type

        $104.00

        1. Table | CONSTRUCTION EXPENDITURES IN CHINA BY TYPE

      3. 4.3 Construction Expenditures by Market

        $215.00

        1. Table | CONSTRUCTION EXPENDITURES IN CHINA BY MARKET

        2. CHART III-1 CONSTRUCTION EXPENDITURES IN CHINA BY MARKET, 2003-2023

      4. 4.4 International Environment

        $287.00

        1. 4.4.1 Construction Expenditures for Selected Countries

          $82.00

          1. Table | CONSTRUCTION EXPENDITURES FOR SELECTED COUNTRIES, 2003-2013

        2. 4.4.2 Foreign Participation in China's Construction Industry

          $165.00

          1. Table | FOREIGN PARTICIPATION IN CHINA'S CONSTRUCTION INDUSTRY

    5. 5 RESIDENTIAL BUILDING

      $1,890.00

      1. 5.1 General

        $339.00

        1. Table | RESIDENTIAL BUILDING CONSTRUCTION EXPENDITURES IN CHINA BY TYPE

      2. 5.2 New Housing Construction Expenditures

        $170.00

        1. Table | NEW HOUSING CONSTRUCTION EXPENDITURES IN CHINA

        2. CHART IV-1 NEW HOUSING CONSTRUCTION EXPENDITURES IN CHINA, 2003-2023

      3. 5.3 New Housing Completions

        $459.00

        1. Table | NEW HOUSING COMPLETIONS IN CHINA

        2. CHART IV-2 NEW HOUSING COMPLETIONS IN CHINA, 2003-2023

        3. 5.3.1 Single Family

          $166.00

        4. 5.3.2 Multifamily

          $127.00

      4. 5.4 Additions & Alterations

        $124.00

        1. Table | RESIDENTIAL BUILDING ADDITION & ALTERATION EXPENDITURES IN CHINA

      5. 5.5 Housing Stock

        $538.00

        1. Table | HOUSING STOCK IN CHINA BY TYPE & OWNERSHIP

        2. CHART IV-3 HOUSING STOCK IN CHINA BY TYPE, 2003-2023

        3. 5.5.1 Single Family

          $127.00

        4. 5.5.2 Multifamily

          $153.00

        5. 5.5.3 Ownership

          $103.00

      6. 5.6 Living Space

        $259.00

        1. Table | AVERAGE LIVING SPACE IN CHINA

        2. CHART IV-4 AVERAGE LIVING SPACE IN CHINA, 2003-2023

        3. 5.6.1 Urban

          $82.00

        4. 5.6.2 Rural

          $82.00

    6. 6 NONRESIDENTIAL BUILDING

      $845.00

      1. 6.1 General

        $237.00

        1. Table | NONRESIDENTIAL BUILDING CONSTRUCTION EXPENDITURES IN CHINA BY TYPE

      2. 6.2 New Construction

        $82.00

      3. 6.3 Additions & Alterations

        $82.00

      4. 6.4 Structure Types

        $412.00

        1. Table | NONRESIDENTIAL BUILDING CONSTRUCTION EXPENDITURES IN CHINA BY STRUCTURE

        2. CHART V-1 NONRESIDENTIAL BUILDING CONSTRUCTION EXPENDITURES IN CHINA BY STRUCTURE, 2013

        3. 6.4.1 Industrial

          $128.00

        4. 6.4.2 Office & Commercial

          $82.00

        5. 6.4.3 Institutional

          $82.00

        6. 6.4.4 Other

          $82.00

      5. 6.5 Nonresidential Building Stock

        $82.00

        1. Table | NONRESIDENTIAL BUILDING STOCK IN CHINA

    7. 7 NONBUILDING

      $666.00

      1. 7.1 General

        $275.00

        1. Table | NONBUILDING CONSTRUCTION EXPENDITURES IN CHINA BY TYPE

      2. 7.2 Structure Types

        $390.00

        1. Table | NONBUILDING CONSTRUCTION EXPENDITURES IN CHINA BY STRUCTURE

        2. CHART VI-1 NONBUILDING CONSTRUCTION EXPENDITURES IN CHINA BY STRUCTURE, 2013

        3. 7.2.1 Roads & Other Transportation Infrastructure

          $117.00

          1. Table | PAVED ROADS IN CHINA BY REGION

          2. CHART VI-2 TOTAL & PAVED ROADS IN CHINA, 2003-2023

        4. 7.2.2 Utilities

          $112.00

        5. 7.2.3 Other

          $82.00

    8. 8 REGIONAL TRENDS

      $1,764.00

      1. 8.1 General

        $182.00

      2. 8.2 Regional Demographic & Economic Trends

        $263.00

        1. 8.2.1 Population Patterns

          $96.00

          1. Table | POPULATION OF CHINA BY REGION

        2. 8.2.2 Economic Outlook

          $102.00

          1. Table | GROSS DOMESTIC PRODUCT OF CHINA BY REGION

          2. CHART VII-1 GROSS DOMESTIC PRODUCT OF CHINA BY REGION, 2013

      3. 8.3 Regional Construction Expenditures

        $1,319.00

        1. Table | CONSTRUCTION EXPENDITURES IN CHINA BY REGION

        2. CHART VII-2 CONSTRUCTION EXPENDITURES IN CHINA BY REGION, 2013

        3. 8.3.1 Central-North

          $233.00

          1. CHART VII-3 CENTRAL-NORTH REGION OF CHINA

          2. Table | CENTRAL-NORTH REGION OF CHINA: CONSTRUCTION EXPENDITURES

        4. 8.3.2 Northeast

          $245.00

          1. CHART VII-4 NORTHEAST REGION OF CHINA

          2. Table | NORTHEAST REGION OF CHINA: CONSTRUCTION EXPENDITURES

        5. 8.3.3 Central-East

          $176.00

          1. CHART VII-5 CENTRAL-EAST REGION OF CHINA

          2. Table | CENTRAL-EAST REGION OF CHINA: CONSTRUCTION EXPENDITURES

        6. 8.3.4 Central-South

          $170.00

          1. CHART VII-6 CENTRAL-SOUTH REGION OF CHINA

          2. Table | CENTRAL-SOUTH REGION OF CHINA: CONSTRUCTION EXPENDITURES

        7. 8.3.5 Southwest

          $190.00

          1. CHART VII-7 SOUTHWEST REGION OF CHINA

          2. Table | SOUTHWEST REGION OF CHINA: CONSTRUCTION EXPENDITURES

        8. 8.3.6 Northwest

          $191.00

          1. CHART VII-8 NORTHWEST REGION OF CHINA

          2. Table | NORTHWEST REGION OF CHINA: CONSTRUCTION EXPENDITURES

    9. 9 INDUSTRY STRUCTURE

      $5,333.00

      1. 9.1 General

        $82.00

      2. 9.2 Industry Composition

        $216.00

        1. Table | REVENUE DATA: SELECTED CONSTRUCTION COMPANIES, 2013

      3. 9.3 Market Share

        $225.00

        1. CHART VIII-1 CONSTRUCTION MARKET SHARE IN CHINA BY COMPANY, 2013

      4. 9.4 Marketing

        $111.00

      5. 9.5 Financial Issues & Requirements

        $388.00

        1. 9.5.1 Capital Expenditures

          $138.00

        2. 9.5.2 Project Funding

          $126.00

      6. 9.6 Company Profiles

        $4,974.00

        1. 9.6.1 AECOM Technology Corporation

          $156.00

        2. 9.6.2 Anhui Construction Engineering Group Company Limited

          $123.00

        3. 9.6.3 Balfour Beatty plc

          $116.00

        4. 9.6.4 Bechtel Group Incorporated

          $82.00

        5. 9.6.5 Beijing Construction Engineering Group Company Limited

          $174.00

        6. 9.6.6 Beijing Urban Construction Group Company Limited

          $143.00

        7. 9.6.7 Black & Veatch Holding Company

          $107.00

        8. 9.6.8 Bouygues SA

          $124.00

        9. 9.6.9 China Communications Construction Company Limited

          $275.00

        10. 9.6.10 China Gezhouba Group Company Limited

          $129.00

        11. 9.6.11 China National Chemical Engineering Company Limited

          $148.00

        12. 9.6.12 China National Machinery Industry Corporation

          $128.00

        13. 9.6.13 China Railway Construction Corporation Limited

          $162.00

        14. 9.6.14 China Railway Group Limited

          $190.00

        15. 9.6.15 China State Construction Engineering Corporation

          $159.00

        16. 9.6.16 Chiyoda Corporation

          $120.00

        17. 9.6.17 CTCI Corporation

          $217.00

        18. 9.6.18 Dongfang Electric Corporation

          $82.00

        19. 9.6.19 Fluor Corporation

          $125.00

        20. 9.6.20 Foster Wheeler AG

          $141.00

        21. 9.6.21 Fujian Construction Engineering Group Company

          $118.00

        22. 9.6.22 Guangdong Construction Engineering Group Corporation Limited

          $82.00

        23. 9.6.23 Guangsha Holding Group Company Limited

          $219.00

        24. 9.6.24 Hebei Construction Group Company Limited

          $132.00

        25. 9.6.25 HOCHTIEF AG

          $105.00

        26. 9.6.26 Hunan Construction Engineering Group Corporation

          $82.00

        27. 9.6.27 Jacobs Engineering Group Incorporated

          $95.00

        28. 9.6.28 Jiangsu Suzhong Construction Group Company Limited

          $84.00

        29. 9.6.29 Lend Lease Corporation Limited

          $115.00

        30. 9.6.30 Metallurgical Corporation of China Limited

          $230.00

        31. 9.6.31 NWS Holdings Limited

          $87.00

        32. 9.6.32 Power Construction Corporation of China Limited

          $141.00

        33. 9.6.33 Qingjian Group Company Limited

          $85.00

        34. 9.6.34 Shaanxi Construction Engineering Group Corporation

          $114.00

        35. 9.6.35 Shanghai Construction Group Company Limited

          $93.00

        36. 9.6.36 Shanghai Urban Construction Group Corporation

          $82.00

        37. 9.6.37 Sichuan Huashi Group Corporation Limited

          $112.00

        38. 9.6.38 Zhejiang Construction Investment Group Company Limited

          $88.00

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