CHINA: An Introduction to Construction (PRC Firms)
2023 Annual Overview of the Construction Industry in China
2023 建筑行业年度观察大纲
Overview of China’s Construction Industry in 2023
2023年度中国建筑业概览
In 2023, the total output value of the construction industry in China was CNY31,591.185 billion, which still occupied an important position in the national economy and provided important support for economic and social development. However, after a decrease in profit in the previous year, the industry continued to show a downward trend in 2023. In addition, new contract amounts, construction areas, completed construction areas, and labour productivity in the construction industry also showed varying degrees of decline.
2023年中国建筑业全年总产值315911.85亿元，在国民经济中仍占据重要地位，为经济社会发展提供了重要支撑。但行业利润继上年度下降后，2023年度继续呈现下降趋势。除此之外，建筑业新签合同额、房屋建筑施工面积、房屋建筑竣工面积、劳动生产率也呈现不同程度的下降。
In 2023, 81 Chinese companies were included in the ENR “Top 250 International Contractors” list, an increase of two from the previous year, continuing to rank first among all countries. The proportion of Chinese companies' business volume increased to 27.5%, and the number of companies on the list and the scale of their business ranked first among all countries, demonstrating strong international competitiveness of Chinese construction companies.
2023年，中国81家企业入围ENR“全球最大250家国际承包商”榜单，较上年度增加2家，继续蝉联各国榜首。中国企业业务量占比提升至27.5%，上榜企业数量与业务规模在各国企业中均位居首位，展现出中国建筑企业较强的国际竞争力。
Trends in the Development of China’s Construction Industry
中国建筑业发展趋势
The development trends of the construction industry in China include the continuous weakening of the liquidity of construction unit funds due to the combined impact of the economic environment and real estate regulation policies. Some private construction companies are facing difficulties in undertaking upstream business, and the negative impact of real estate company defaults has further worsened their operations. Some state-owned construction companies also face difficulties in liquidity, affecting normal business activities. The main reasons for these situations are the defaults of real estate companies, the decline in real estate prices, and the difficulty of realising construction companies' rights to payment. In addition, the increase in local government debt and the decrease in land revenue have made it more difficult to recover government-related debts.
受到经济环境和房地产调控政策的叠加影响，建设单位资金流动性持续减弱。部分民营施工企业由于难以承接上游业务，再加上房地产企业暴雷的负面影响，经营陷入困境；一些国有施工企业也面临流动资金困境，影响正常经营活动。产生上述状况的主要原因在于房地产企业的暴雷，房地产价格的下跌，施工企业的债权难以实现。此外，地方政府债务增加、土地收入减少，使得与政府相关的债务追讨难度加大。
With the implementation of the “14th Five-Year Plan” for the development of the construction industry, the business model of general contracting has been further promoted. The gradual launch of urban renewal plans in China has brought new business opportunities to the construction industry. At the same time, in the face of the gradually declining domestic construction market, the steady progress of the "Belt and Road" strategy has accelerated the participation of Chinese construction companies in infrastructure construction in countries along the route, and overseas projects will become a huge growth point for Chinese construction companies in the future.
随着“十四五”建筑业发展规划的实施，工程总承包的经营模式得到进一步推广；国内城市更新计划的陆续启动，为建筑行业带来了新的业务机会。同时，面对国内建筑市场显现逐渐下降的趋势，“一带一路”战略的稳步推进加快了中国建筑企业参与沿线国家基础设施建设的进程，涉外工程将成为中国建筑企业未来巨大的增长点。
New laws and regulations with significant impact on the construction industry
对建筑行业产生重要影响的新法新规
On 20 April 2023, the Supreme People's Court issued a reply on the protection of consumers' rights in relation to commercial housing, which prioritised consumers' rights to request delivery of houses and refund of payments over the priority right to be compensated for construction project payments. This strengthens the protection of homebuyers and helps resolve conflicts between homebuyers and construction companies, but it also poses certain obstacles to the realisation of construction companies’ priority rights to be compensated for construction project payments.
2023年4月20日，最高人民法院发布《最高人民法院关于商品房消费者权利保护问题的批复》，该司法解释规定商品房消费者享有的房屋交付请求权以及价款返还请求权优先于建设工程价款优先受偿权，加大对购房者的保护力度，有利于消弭购房者房款和房屋两空的矛盾，但对于施工企业的建设工程价款优先受偿权的实现造成了一定的阻碍。
On 4 December 2023, the Supreme People’s Court announced the “Interpretation of the Supreme People’s Court on Several Issues Concerning the Application of the General Provisions of the Civil Code of the People’s Republic of China on Contracts,” which listed mandatory provisions that do not affect the validity of contracts and further clarifies the legal consequences of contracts not being established, being invalid, being revoked, or not taking effect. This provides new rules and guidance for resolving issues related to the validity of construction project contracts and breach of contract liabilities.
2023年12月4日，最高人民法院公布《最高人民法院关于适用〈中华人民共和国民法典〉合同编通则若干问题的解释》，正面列举了不影响合同效力的强制性规定，并进一步明确合同不成立、无效、被撤销或者确定不发生效力的法律后果，对于处理建设工程合同纠纷中合同效力、违约责任等问题的解决提供新的规则指引。
Potential obstacles faced by clients and how to overcome them
客户面临的潜在障碍以及如何克服
Difficulty in enforcing judgments after winning lawsuits
获得胜诉判决后难以获得执行
Due to the defaults of some large real estate companies, most engineering payment debts cannot be repaid when they are due. It is recommended that construction companies, when filing lawsuits or arbitration, collect comprehensive evidence for property preservation and strive for better preservation results. In the execution stage, efficient disposal of assets should be carried out to realise the rights to payment. Construction companies can hire professional legal service teams with rich experience in property preservation and execution to provide services.
由于部分大型房地产企业出现暴雷，大部分工程款债权到期无法清偿。我们建议施工企业在提起诉讼或者仲裁时，尽可能全面地搜集财产保全线索并争取较好的保全效果，并在执行阶段高效地处置资产以实现债权。施工企业可以聘请具有丰富保全和执行经验的专业法律服务团队提供服务。
Shrinking business volume for construction companies
施工企业业务量萎缩
Due to the decrease in property prices and market demand, the construction industry is facing the dilemma of declining contract amounts and shrinking business volume. It is recommended that construction companies seek broader business areas, reduce reliance on real estate projects, and explore opportunities in emerging markets and overseas markets, especially countries and regions along the "Belt and Road" initiative, to expand their business scope and diversify market risks.
由于房产价格下降，市场需求减少，建筑行业面临合同额下降和业务量萎缩的困境。我们建议施工企业可寻求更广泛的业务领域，减少对房地产项目的依赖，并探索新兴市场和海外市场机会，特别是“ 一带一路”沿线国家和地区，扩大业务版图，分散市场风险。
Difficulty in controlling risks in overseas projects
涉外工程风险把控困难
During the construction process of overseas projects, changes in the political environment, legal differences, and cultural conflicts in the host country may affect the smooth implementation of projects and bring risks. It is recommended that companies strengthen risk management and develop comprehensive response strategies to ensure the smooth progress of projects when going global. Construction companies can hire law firms with expertise in international law to provide guarantees for risk control in overseas projects.
涉外工程施工过程中，项目所在国的政治环境变化、法律差异、文化冲突等都可能影响项目的顺利实施，带来风险。我们建议企业在“走出去”的过程中，加强风险管理，制定周密的应对策略，以确保项目顺利推进。施工企业可以聘请具有涉外法律服务能力的律师事务所，为企业在海外项目中把控风险提供保障。