Posted on 20 Apr 2023
Chinese contractors performed better than expected in the international market last year, thanks to the stimulus by the country's Belt and Road Initiative (BRI), according to Yu Xiaohong, Vice Chairwoman of China International Contractors Association, when she told the delegates attending the 2nd China Steel Overseas Development Forum on April 19 in Xiamen in South China's Fujian province.
Though the global economy is in a phase of cyclical weakness and the risk of a recession is heightening, the accomplished turnover of China's contracting projects outside the domestic market came in at $155 billion in 2022, up a tiny 0.03% on year. Meanwhile, the value of newly-signed contracts slipped 2.1% on year during the same period to $253.1 billion.
On a Yuan basis, the accomplished turnover of China's international contractors showed a more substantial growth rate of 4.3% on year, while the value of newly-signed contracts also reversed from an on-year dip, up by 2.1% on year over the same period, Yu said.
"Transportation, general building, and electric power projects remained the three pillar businesses of Chinese contractors," she noted. Among them, transportation ranked first in terms of business size, winning $58.7 billion in new contracts last year and representing 23.2% of the total contracts. Meanwhile, the accomplished turnover for transportation totaled $41.1 billion, accounting for 26.5% of the total turnover.
Yu delivers a speech at the 2nd China Steel Overseas Development Forum
Regarding business distribution, Asia and Africa remained the top two markets for China's international contractors in 2022, with the value of new contracts that China had signed with these two regions reaching $123.2 billion and $73.2 billion respectively last year, Yu said.
Meanwhile, 79 Chinese enterprises made it onto the list of "World's Top 250 International Contractors" in 2022, with the number of shortlisted Chinese companies surpassing all other countries in the world.
Speaking about the development opportunities for China's international contractors, Yu predicted that the global infrastructure construction sector may experience a recovery, with "green transformation" and digital transformation showing significant potential.
She added that as the policy environment continues to improve, some key cooperation projects under "BRI" are expected to be launched at a faster pace.
Source:Mysteel Global
