China in a Decade: High-quality development of the construction industry improves livelihood

II. Steady progress in efficiency with higher development quality

Since the 18th National Congress of the CPC, China’s construction industry has consistently improved its efficiency and overall strength. Following the concept of innovation-driven and green-oriented development, a great number of construction enterprises have gone on to the global market, and the industry in general has improved its development quality.

1. Steady growth of economic benefits

At the end of 2021, labor productivity calculated by total construction output reached 473,000 yuan per person, an increase of 177,000 yuan/person or 59.6% over 2012.

The increase in productivity further boosted the profitability of enterprises, with both the operating income and profits growing at a faster pace.

In 2021, construction enterprises in China achieved a total business income of 27.0 trillion yuan, an increase of 1.07 times over 2012, with an average annual growth of 8.4% from 2013 to 2021; their total profit hit 855.4 billion yuan, an increase of 79.1% over 2012, with an average annual growth of 6.7% from 2013 to 2021.

2. Great enhancement of overall strength

The financial standing of enterprises is consolidated. At the end of 2021, the total assets of enterprises in the construction industry reached 31.0 trillion yuan, an increase of 1.77 times over 2012, with an average annual growth of 12.0% from 2013 to 2021.

The construction market has reached an all-time high. The total volume of contracts signed by construction enterprises reached 65.7 trillion yuan in 2021, 1.66 times more than in 2012, with an average annual growth rate of 11.5% from 2013 to 2021.

The international influence of China’s construction industry is also increasing. 10 Chinese enterprises in the engineering and construction sector were listed in the Fortune 500 List in 2021, 4 more than in 2012.

3. Innovation-driven and green development continues to gain momentum

Apart from modernizing the industry, innovation in technology has resulted in the transformation and upgrading of China’s construction industry. Major breakthroughs are made for a number of key technologies, and projects of world-leading standards have been completed one after another, such as the high-speed railway project showcasing the “China Speed”, and the Hong Kong-Zhuhai-Macau Bridge demonstrating the “span” of Chinese engineering, the Shanghai Centre building showing the “height” of Chinese engineering, and the independently developed third-generation nuclear power technology “Hualong-1” that represents the “breakthrough” of Chinese engineering.

China’s green buildings are developing rapidly and building renovations for energy efficiency purposes are being promoted in an orderly manner. According to the Ministry of Housing and Urban-Rural Development, as of the end of 2020, the total area of green buildings nationwide had exceeded 6.6 billion square meters, the total floor area of energy-saving buildings had exceeded 23.8 billion square meters, and the ratio of energy-saving buildings to urban civil building area had exceeded 63%.

4. Strong momentum of Chinese enterprises “going global”

China has signed cooperation agreements with more than 170 countries and international organizations under the framework of the “Belt and Road Initiative” (BRI) and has implemented more than 2,000 cooperation projects. After years of development and construction, the inter-connectivity network featuring “Six Corridors, Six Roads, Multiple Ports in Multiple Countries” had basically taken shape.

Chinese construction enterprises have built the China-Myanmar oil and gas pipeline, the Mohammed VI Bridge in Morocco, the Mombasa-Nairobi Standard Gauge Railway (SGR), the Stueng Trang-Krauch Chhmar Bridge over Mekong River in Cambodia, and the Karot Hydropower Plant in Pakistan. The brand of “China Construction” has taken a deep root in the international arena.