TORONTO, July 9 /CNW/ - China's booming construction market China's
rising urbanisation, planned major infrastructure projects, the western
development programmes and the revitalization of China's industrial
north-east, represent significant market opportunities and, in turn, profits
for both domestic and foreign contractors, according to a new report from
PricewaterhouseCoopers (PwC), Building knowledge: China's booming construction
The new report shows that the construction market in China will reach
US$460 billion by the end of 2008 and construction spending in China is
expected to grow at a rate of 9.7% annually through to 2010. It also points
out that construction expenditures will benefit from growth in
government-funded infrastructure construction projects. These include the
Three Gorges project, the 2008 Beijing Olympics, 2010 Asian Games and the
Shanghai World Expo.
"The investment environment for the construction industry in China has
been greatly improved since the first foreign contractors entered the market
in the early 1980s," says Michael Clifford, PwC Canada Industrial Products Tax
Leader - Engineering and Construction, PwC. "Foreign investors and contractors
now have much broader access to the rapidly expanding construction market."
Many private and foreign constructors are rapidly developing in China and
in certain provinces, special economic zones have been initiated to attract
foreign investment. It is common for foreign investors to be offered a range
of incentives in order to encourage them to establish themselves in a
particular province. Local government may also provide a "one-stop-shop"
approach in order to assist foreign firms in working through the bureaucracy
"However, foreign contractors directly investing in China or setting up
office there may encounter a wide range of practical problems," notes
Clifford. "For example recruiting experienced staff with the right set of
skills for international business, managing and motivating the local staff,
and winning work as sometimes the selection process is not transparent."
Foreign contractors will also have to come to terms with Chinese tax,
accountancy and employment law. China is going through rapid change and its
regulations, legislation and institutional structures are in a state of
continual transition. It is important to seek advice from companies providing
legal and professional services to get the most up to date information and
advice tailored to the particular circumstances and needs of the company.
For more information on Building knowledge: China's booming construction
market, please visit www.pwc.com/e&c
PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance,
tax and advisory services to build public trust and enhance value for its
clients and their stakeholders. More than 146,000 people in 150 countries
across our network share their thinking, experience and solutions to develop
fresh perspectives and practical advice. In Canada, PricewaterhouseCoopers LLP
(www.pwc.com/ca) and its related entities have more than 5,200 partners and
staff in offices across the country.
"PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP, an Ontario
limited liability partnership, or, as the context requires, the
PricewaterhouseCoopers global network or other member firms of the network,
each of which is a separate and independent legal entity.
For further information:
For further information: Carolyn Forest, PricewaterhouseCoopers LLP,
(416) 814-5730, firstname.lastname@example.org