Chinese Construction Firms Need to Find New Global Markets, Industry Players Say
By Zhao Xuan and Wang Xintong
China’s international contractors must find new global markets to counteract a slowdown in their traditional mainstays and hedge against risks arising from the trade war with the U.S., industry executives and experts said at a recent event.
The five-year span from 2026 to 2030 “will be a decisive period for Chinese companies engaged in overseas construction projects,” said Li Xiaoyu, vice general manager of China National Machinery Industry Corp., at a late-July workshop organized by the China International Contractors Association (CHINCA). Li urged the firms to explore new markets while transforming or upgrading their business models.
From 2020 to 2024, the value of new contracts signed by Chinese contractors abroad grew from $255 billion to $264.3 billion, while completed turnover rose from $155.9 billion to $166 billion, said Shang Shengping, CHINCA’s director of strategy and consulting, at the workshop. However, he noted that the growth rates for both metrics have slowed compared with the prior five-year period, without giving specific details.
Chinese firms remain heavily dependent on Asia and Africa. Between 2020 and 2024, Asia accounted for 50% to 55% of all new contracts, averaging around $150 billion annually, CHINCA data showed. Africa made up another 26% to 30%, with contracts valued between $70 billion and $80 billion. In contrast, Europe and Latin America each represented smaller shares, at approximately 8% and 6% respectively.
Chinese contractors are also navigating a more complex global trade environment. U.S. President Donald Trump’s tariffs have disrupted global supply chains, making projects take longer and cost more, said Su Yue, principal China economist at the Economist Intelligence Unit, at the workshop.
The China-U.S. trade war has triggered knock-on effects, such as a surge of cheap Chinese exports into other markets. Su warned this could cause those countries to protect their own industries by imposing new trade barriers, and urged Chinese contractors to have backup plans and further diversify their markets.
These international headwinds are hitting an industry that is also contracting at home.
In 2024, China’s 31 listed construction companies saw new contract values fall 3% year-over-year, while revenues dropped 5% and profits plunged 15%, according to Liu Yi, executive director at Beijing-based GoalFore Advisory.
“For contractors, the domestic and overseas markets are like a seesaw: pressure at home underscores the critical importance of international business,” Liu said at the workshop.
Contact reporter Wang Xintong (xintongwang@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)
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