China
The Chinese government has recognized that a modern economy runs on reliable roads and rails, electricity, and telecommunications. China has focused pretty much on the construction industry after the 1980s when Xiaoping Deng officially announced the Reforming and Opening policy. Construction has been identified as a vital industry in China’s economic revitalization. Both the Local and Central governments strive to set up the policies and programs to help promote the development of the national and local construction industries, in the hope of advancing the rapid growth of China’s economy.
To be more specific, according to the National Bureau of Statistics, the value-added output of the construction industry reached 5.57 trillion RMB in 2017 while it was only 13.9 billion RMB in 1978. The output of the construction industry accounted for 3.8% of the country’s GDP in 1978, while the proportion rose to 6.7% in 2017. The number of construction firms increased to more than 300,000 in 2016 owing to the massive development in the construction industry that took place from 2009 to 2014 after the 2008 crisis.
The construction industry has grown rapidly since 2009, resulting in massive infrastructure projects whose majority funding have been provided by the state-owned banks. Belt road initiative is China’s attempt to connecting several economic centers across the globe. With the coming up of such large-scale infrastructure projects like the Belt Road Initiative, there is a need to bridge the gap between the private and public funding. New technological trends are providing an opportunity for more groundbreaking designs resulting in an economical approach with an environmentally friendly option.
China’s integration with the global economy served it well over the past three decades. By continuing to intensify its trade, investment, and financial links with the global economy over the next two decades, China will be able to benefit from further specialization, increased investment opportunities and higher returns to capital, and mutually beneficial flow of ideas and knowledge. China has already become one of the most influencing countries in the world and it is undoubtedly worth to study how construction industry developed that fast and helped revitalize China
Team
Dharan Patel
Tanushri Ganesh
Shamir Perez
