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Industry Analysis

China’s construction industry is booming and its market is increasing over 10 percent every year. According to the China Building Materials Association, that the gross profit of the building materials will exceed USD 1.2 billion.

The Olympic Games always means business opportunities. Hosting the Olympics in 2008 will accelerate the growth of transportation, construction industries, and environmental protection industries and help them meet international standards in China. The access of WTO also ease the trade procedures.

Comparing with European developed countries, the manufacture level and design level are lower in China. There is an existing market in between. The market requires advanced technologies, high-tech products, new stylish design and total systematic solutions.

  1. Materials design and production level are lower in China than those in Europe.  

  2. The market demands more and more high standard commercial buildings such as offices, hotels and other public facilities as Chinese economy growing. 

  3. Environment protection and energy saving are the two key focuses from government.

  4. Minority Chinese are getting richer and richer. 20% of population own 80% of the savings. They are ready to pay. Apartment price in Beijing : Urban area RMB 6,000 to RMB 15,000/, that is Euro 700 to Euro1,500/.

  5. Government regulations of phasing out of “shell” or “unfinished” (“Maopi”) homes and those will be replaced with fully outfitted homes. I.e. installed kitchen, bathrooms, walls, floors and plumbing. This will have an immediate impact on material market and result in the competition of higher-class interior fittings.

  6. Substandard building construction and the use of poor quality building materials rank as two of the top complaints by Chinese consumers.

  7. The choice of building and decoration material has substantially influenced on real estate developers and end consumers. They are more and more concern on building and decoration material than ever before.

  8. The use of new technology and high-quality product is inevitable. The Chinese needs support from foreign new technology in this field from developed countries, especially, Euro-style.


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Last modified: 2006-12-26