CHINA: An Introduction to Projects & Infrastructure (PRC Firms)
Abstract
This commentary examines the state of infrastructure development in China in 2024 and describes progress in both traditional and new infrastructure. It also analyses the financial, technological and institutional difficulties and proposes paths to solve them, so as to provide a reference for the understanding of infrastructure development as the sector moves forward into 2025.
Introduction
The importance of infrastructure development
Infrastructure covers the fields of transport, energy, water conservation and communications, and is a necessary prerequisite for social production and the lives of individuals. A sound transport network can promote synergistic regional economic development, such as the construction of high-speed railways, which shortens the time and space distances between cities and accelerates the flow of people and goods. At the same time, a reliable supply of energy ensures industrial production and the lives of residents and the development of clean energy is conducive to sustainable development while water conservation facilities not only improve the efficiency of agricultural irrigation but also provide a defence against floods and disasters, thereby reducing economic losses and human casualties.
The role of policies, regulations and guidelines in 2024
The policies and regulations promulgated by the government in 2024 covered all aspects of traditional and new infrastructure development. In the transport sector, they promoted the construction of transport arteries and intelligent transformation. Meanwhile, in the energy sector, they emphasised the diversification of energy supply and the application of clean energy. Finally, in the communications sector, they supported the construction of 5G base stations and data centres. These policies provided support in terms of capital, technology and land to promote infrastructure development.
Status of China’s Infrastructure Development in 2024
Status of traditional infrastructure development
Transportation
In 2024, the infrastructure of China's water transport industry continued to improve, shipbuilding capacity led the world, metal container production fluctuated, the structure of port berths was optimised and the navigable mileage of inland waterways reached close to 130,000 km (in 2025 it is expected to reach 133,000 km). Road, railway and aviation trunk lines advanced steadily, with deepening intelligent transformations and enhanced logistics infrastructure.
Energy
The energy supply system focused on diversification and security. Oil and gas reserves and emergency guarantee capacity were strengthened, the scale of clean energy development and utilisation was expanded and the construction of the energy internet was advancing in an orderly manner, promoting the transformation of sustainable energy development.
Water
The first quarter of 2024 saw record investment in water conservation construction, with the construction of water conservation facilities focusing on flood control, drought resistance and water supply capacity enhancement, strengthening the construction of reservoirs and embankments, focusing on water resources conservation, protection and deployment and the widespread application of non-conventional water resource utilisation technologies.
Status of new infrastructure development
Data
The Big Data Expo in 2024 demonstrated the rapid development of data infrastructure, various places to accelerate the construction, such as Jiangxi deployment of three-level data circulation infrastructure and specific regions to carry out pilot work to release the value of data elements to support the development of the digital economy.
Communication network
In 2024, the construction of the communication network was accelerated and China took the lead in the number of 5G base stations and the number of end users. It is expected that more 5G base stations will be built in 2025 to realise the synergistic development of multi-frequency bands, to solve the problem of 5G network coverage and to push the expansion of 5G application in multiple industries forward.
Difficulties in Infrastructure Development in China in 2024
Financial shortage
There is a huge demand for funds for infrastructure development, but financial resources are limited and social capital alone is insufficient. The reliance on fiscal input for large-scale projects has made it difficult to meet demand and the long return on investment and high risks have led to social capital concerns and low motivation to participate, restricting construction and development.
Insufficient technological innovation
Technological innovation capacity lags in some areas compared to international standards. Breakthroughs in new infrastructure like 5G and artificial intelligence (AI) are needed and traditional infrastructure faces technical bottlenecks in intelligent transformation and efficient use.
Institutional barriers
Some infrastructure developments face institutional problems such as cumbersome approval processes and excessive market access restrictions. Multiple and lengthy approval processes impede project progress while unreasonable market access restrictions affect the entry of social capital, reducing the efficiency of resource allocation and the adequacy of market competition.
Land resource constraints
Despite strengthened land management, infrastructure development faces land shortages. High demand for land for construction projects contrasts with limited resources, necessitating land-saving techniques and stock revitalisation to meet needs and improve efficiency.
Environmental protection requirements
Strict environmental protection requirements make it necessary for infrastructure development to adopt green construction methods, promote environmentally friendly materials and technologies and strengthen environmental monitoring and management. This increases construction costs and complexity, necessitating a balance between environmental protection and construction.
Paths to Solving China's Infrastructure Difficulties in 2024
Increase financial inputs
Government financial support
The government has increased financial input and set up special funds, such as financial support for projects in key areas, to ensure the smooth progression of the project.
Diversified financing channels
To diversify financial channels, the participation of social capital should be encouraged, a PPP method adopted and asset securitisation and other innovative ways to broaden financing channels be explored. This will help achieve the sharing of risk and reward, attract more investors and solve the problem of insufficient funds.
Innovative financial products and services
Financial products such as infrastructure investment funds and bonds should be developed to provide long-term stable financial support for construction. This could include setting up special funds and issuing bonds to raise funds.
Enhance technological innovation
Increase R&D investment
Investment in R&D for technological innovation should be increased and special funds set up to encourage enterprises to pay attention to R&D, improve technological innovation capacity and adapt to the needs of high-quality development.
Promote industry-university-research co-operation
Platforms to accelerate the transformation of scientific and technological achievements should be built. This could include co-operation in the field of new infrastructure development and the application of cutting-edge technology R&D.
Introduce advanced foreign technologies
Foreign advanced technologies and experiences could be learned from to improve the levels of China's infrastructure development, such as adopting foreign intelligent transport and clean energy technologies.
Improve institutional mechanisms
Streamline the authorisation process
A one-stop approval service platform, integrating approval departments, simplifying processes, reducing links, shortening approval times and improving efficiency should be established.
Liberalise market access
The government has formulated policies to abolish unreasonable market access restrictions and encourage social capital to participate in infrastructure development, such as implementing the PPP model in multiple fields to allow social capital advantages to be realised.
Strengthen supervision
A sound supervision system for infrastructure projects, ensuring quality, safety, efficiency and sustainability while safeguarding public interest and security should be established.
Save and intensify land use
Strengthen land management
Land-use planning and programme management should be strengthened and land scientifically arranged for projects. Demand for land should be reasonably met, supervision and management strengthened and land wastage and illegal land use prevented.
Promote land-saving technologies and modes
Land-saving technologies and modes such as three-dimensional transport and distributed energy in the construction of transport, energy and other infrastructures should be promoted to make full use of spatial resources and reduce land demand.
Revitalise land stock
Land inventory for infrastructure development through urban renewal and redevelopment projects, such as the construction of car parks and charging points and the renovation of old districts should be revitalised, to improve the efficiency of land utilisation and the level of supporting infrastructure.
Promote green construction
Promote the concept of green construction
Enterprises should be encouraged to adopt green construction technologies and methods, such as using energy-saving equipment, reducing waste emissions and arranging construction times rationally to lower energy consumption and emissions.
Application of environmentally friendly materials and technologies
Environmentally friendly materials and technologies in infrastructure development, such as the use of environmentally friendly building materials for transport construction and energy-saving and environmentally friendly equipment for energy construction should be vigorously promoted, to reduce environmental pollution and improve the efficiency of energy use.
Environmental monitoring and governance
A sound construction site environmental monitoring system should be established, environmental monitoring and governance strengthened, environmental issues detected and treated in a timely way, such as water conservation facilities in the construction of water quality monitoring to prevent water pollution and protect the ecological environment.
Conclusion
In 2024, China's infrastructure development aimed to overcome difficulties through in-depth analysis and solution implementation, with collaborative efforts from government, enterprises and society. Addressing financial, technological, institutional, land and environmental issues in 2025 and beyond will steadily improve infrastructure, laying a solid foundation for sustainable economic and social development. This will enhance global competitiveness and resilience, promote long-term stability, improve quality of life and provide a valuable contribution to global infrastructure development. China will also continue to advance towards more robust, efficient and green development throughout 2025.