China has the world’s largest construction market. According to the Ministry of Housing and Urban-Rural Development (MOHURD), from 2011 to 2015, China will completed 1billion square meters of new green building construction, and by 2015, 20% of the new buildings in the new cities and towns will reach to the green building standards
On China’s 12th Five-Year (2011-2015) Plan for Economic and Social Development, China is set to reduce its energy consumption and carbon dioxide emissions a “binding goal” in this 12th Five-Year Plan. Many provinces and cities have drafted their own enforcement plans; every city is planning to be an “eco-city” by not only retrofitting old buildings but also by building new low carbon buildings.
According to Liu Zhifeng, Director of China Real Estate Research Committee, in the next decade, China’s real estate construction market has great potential due to economic development and urbanization. In the next 10 years, China’s urbanization will reach 65-70% and the urban resident population will increase by another 300 million. Other than the development of commercial, tourism, senior housing and industrial real estate, China still needs to complete 800 million square meters of residential housing in order to accommodate the urban population. This should take another 10 years. China’s “Twelfth-Five Year Plan” indicated that 36 million apartments will be built. China also plans to invest $158.7 billion on “Nation City and Town Sewage Treatment and Renewable Construction Plan.”
Most of the clients of foreign engineering firms active in China are foreign invested enterprises. These projects are mainly infrastructure projects, factories, hotels, luxury housing, offices, and malls as the requirements for these projects are more sophisticated and clients usually demand premium engineering services and consulting work.
On January 5, 2007, the Ministry of Construction issued implementing regulations for foreign-invested design enterprises (FIDEs) to apply for architecture, engineering and design licenses in China under Decree 114. With the issuance of implementing rules for Decree 114, American firms can now apply for engineering and design licenses in China and pursue related opportunities. There are still considerable barriers to licensing in China and US firms should approach the market as consultants to Chinese firms first before considering licensing.
China Ministry of Housing and Urban-Rural Development (MOHURD)
Address: 3 SanLiHe Road, Haidian District, Beijing, 100835
Phone: (+86-10) 6839-4114
China Ministry of Civil Affairs
Address: 147 BeiHeYan Street, Dongcheng District, Beijing 100721
Phone: (+86-10) 6523-5511
Despite the huge opportunities in China’s market, foreign firms will find that China is not an easy market. American companies have to recognize the need for a special approach to a market with such a contrasting cultural, political and economic landscape. The most successful businesses in China are those that take the time to build strong relationships, become recognized in the industry, and develop products and services that cater to Chinese buyers.
Building good local relation is crucial to foreign firms seeking to provide their products and services in China. Forming a close relationship with a local partner can help navigate the opaque regulatory system, as well as provide a strong local presence with local contacts. Most of China’s large projects need to go through an open tender system, and all the bids will be accepted on a competitive basis. The winning bidders and new venue owners have a great deal of autonomy in deciding how to construct and operate the project and how to award this work.
American Planning Association in China
China Energy Conservation Supervision
Shanghai Energy Conservation Supervision Center
U.S. DOE Energy Information Administration
China-US Energy Efficiency Alliance
Energy Research Institute of NDRC
U.S.-China Business Council PRC Government Structure Report
Shanghai City Development Law Firm (Specialized in Construction and Real Estate)
Hong Kong Architectural Services Department
Hong Kong Buildings Department
Hong Kong Civil Engineering Department
Hong Kong Drainage Services Department
Hong Kong Environment Protection Department
Hong Kong Planning Department
Hong Kong Territory Development Department
American Institute of Architects
Hong Kong Institute of Planners
Hong Kong Institution of Engineers
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The U.S. Commercial Service offers a broad array of market entry services to U.S. companies in the architecture, construction and engineering industries. Please refer to the following relevant contacts for additional information on how we can help you expand your business in China.
Tel: (86-24) 2322-1198