Sustaining growth and profits in a rapidly changing world - a Chinese perspective

Flanagan, R., Jewell, C. and Dongping, F. (2013) Sustaining growth and profits in a rapidly changing world - a Chinese perspective. In: Reform and development: a report on construction industry and market in China (in Chinese). Ministry of Housing and Urban Rural Development of China, Beijing, pp. 85-102. ISBN 9787112159482

Abstract/Summary

The aim of this paper is to stimulate discussion about how Chinese construction and professional service companies can best equip themselves and grow sustainably and profitably in a rapidly changing world. It identifies some of the issues and risks faced by Chinese construction and professional service companies operating domestically and overseas. China has experienced a period of rapid economic growth which is also reflected in the annual construction output. China’s population is the largest in the world, but the demographic profile is changing with an ageing population and a changing dependency ratio. The population is urbanising at a fast rate, putting pressure on housing, and infrastructure. The government must plan for the future and the construction sector must be involved in that planning. The paper considers the drivers shaping China’s construction market, how companies are responding by embracing change and internationalising by seeking to exploit their skills overseas. The drivers are globalisation, urbanisation, demographic change, sustainability, safety and health, and the evolution of professional services as a core part of construction activity. Clients/owners are driving change by demanding more certainty and more sustainable projects.