Chinese engineering companies brave the international market
0 Comment(s)
Print
E-mail China Today, September 8, 2015
How exactly is China involved in global infrastructure investment and construction? In which fields do Chinese companies have comparative advantages? And what is the development trend of engineering contracting worldwide? China Today raised these questions in a recent interview with Fang Qiuchen, chair of China International Contractors Association (CHINCA).
|
|
|
China Construction America, Inc., a wholly owned subsidiary of China State Construction Engineering Corporation Limited, won the contract to refurbish the Alexander-Hamilton Bridge in the U.S. |
Brisk overall growth
China Today: What's the general situation of China's contracting businesses in the global market at present? And in which spheres does it have advantages?
Fang Qiuchen: China signed global contracts worth US $191.8 billion in 2014 distributed over more than 190 countries and regions, and reported a business volume of US $142.4 billion. As data from the communications engineering sector are incomplete, overall growth has dipped. But major businesses, including transport, architecture, electricity, and equipment manufacturing, sustained strong growth above 10 percent. China has evident comparative advantages in such sectors as railway, electricity, communications, building material, and engineering machinery.
The share of transport infrastructure has increased remarkably in China's overseas contracting businesses, exceeding 30 percent last year, a record high, and marking a 55 percent year-on-year growth. This is believed to be the result of the surge in the construction of logistic networks amid endeavors by relevant countries to increase regional interconnectivity, in particular the campaign by the Chinese government to introduce its railway technology into foreign markets. Discussions of several railway projects are underway between Chinese engineering companies and their foreign clients, including a high-speed line in Thailand, a rail route in Russia, and another one linking Belgrade and Budapest.
Statistics also show that Chinese contractors are venturing into more engineering fields than before, ranging from mining, real estate development, manufacturing and processing, agricultural development, waste treatment, textiles, and equipment to solar and wind power.
The fastest growth is found in the clean energy sector, including solar and wind power. Last year Chinese companies clinched deals for 35 projects each worth US $5 million or more in 20 countries. The largest among them include the 100 MW photovoltaic power plant in Pakistan (contract value US $215 million), the second-phrase EA Solar project in Thailand (contract value US $170 million) and the Jasper wind power plant in Greece (contract value US $150 million).
China's international contracting businesses saw a marked pickup in the first quarter of 2015, with a business volume of US $31.76 billion, up 17.6 percent over the same period last year, and new contracts valued at US $45.59 billion, gaining 29.7 percent. This upswing can be attributed to two factors. The first is the increase in large projects. Last year Chinese contractors won five contracts totaling in excess of US $2 billion, 25 valued at more than US $1 billion, doubling both figures of the previous year. The increase in the number and value of contracts is particularly pronounced in the railway sector. The second factor is China's financial support for infrastructure development in Asian and African countries. As investment dwindles in the international market, Chinese capital is more cherished, and has a bigger role to play. This also contributes to the expansion of Chinese companies in the global market.
Go to Forum >>0 Comment(s)