Statistics
The construction market is a major driver of China’s economy. During the 11th Five Year period (2006-2010), the plan for total construction is estimated to reach 2 billion square meters each year. According to the Industrialization Report issued by the Ministry of Construction’s Promotion Center for Housing, by 2010, China will have built 80 billion square meters of new housing. By 2020, estimates are 205 billion square meters. Construction spending in China increased 165% in the last four years, according to the National Bureau of Statistics of China, and is still expanding at 25% annually.

China Market Analysis

Architectural Design

Domestic design institutes dominate the middle and low-end market. Their strengths are understanding the needs of the local market and knowledge of government policies. However, they lack quality control, exposure to international standards, and professional management experience. Foreign building products and foreign ACE services are perceived as superior to local substitutes.
More and more domestic real estate developers are looking for high-quality architectural services. This niche market offers foreign ACE firms good opportunities in the long term. While Chinese architects have rich experience in small and medium-sized buildings, they often lack experience with large-scale projects such as integrated projects. Other weak points include intelligent architecture and the integration of new technology and building materials

Building Material & Technologies

China’s building material industry has grown rapidly in the past few years, while there is a large demand for a diverse range of building materials, major areas of interest include:
Light-weight materials
Water-proof, sound-proof and thermal insulation materials
Environmental protection, recycled and recyclable products, ‘green’ buildings
Energy-saving building materials and systems
i-tech content of the materials
Compliance with international standards

Marketing to China

There are a number of key activities overseas exporters should consider when marketing products in China:
1.Commercial and technical seminars to potential customers, architects and local authorities
2.Participation in industry specific trade shows
3.It is critically important to visit the market regularly
4.Promotional, technical and after-sales service support for both distributors and end users

Regulations and Tariffs

On January 5, 2007, the Ministry of Construction issued implementing regulations for foreign-invested design enterprises (FIDEs) to apply for architecture, engineering and design licenses in China under Decree 114. With the issuance of implementing rules for Decree 114, American ACE firms can now apply for engineering and design licenses in China and pursue ACE-related opportunities.
The accession of China to the World Trade Organization (WTO) has resulted in a reduction of tariffs.

Tariff rates on building materials vary from zero to 25 per cent, depending on the type of building material, its intended use, the specific tariff codes and the WTO accession requirements.

2. Government promotes Energy-efficient buildings

Five ministries yesterday vowed to join hands to enhance the building energy efficiency (BEE) of new structures this year in a bid to save energy and reduce pollution.
"The government will create a stricter supervision system and play a greater role in guiding the construction market," Qiu Baoxing, deputy minister of housing and urban construction, told a press conference in Beijing.
To counter a trend of ingenuously dubbing buildings as "energy-saving", the authority will form six to 10 expert groups to enhance supervision work among 30 provinces at the end of this year, Qiu said.
The government has worked to improve legislation in this respect, and the country's first energy-saving law detailing BEE criteria takes effect today.
According to the law, the authority will name and shame cities that fail to meet standards and will revoke licenses of any firms that violate the regulation.
The government also urged those who are responsible for the development of energy-saving construction projects that receive central financial support to report the illegal behavior of other developers, Qiu said.
"This mechanism will effectively promote awareness in the private sector, and at least 200 enterprises that were involved this year," he said.
The central government plans to spend 1 billion yuan ($140 million) to promote BEE nationwide this year, Zhang Shaochun, vice-minister of finance, said.
China's green construction industry, with an estimated value of 1.5 trillion yuan, is growing through energy-efficient projects, according to Ministry of Housing and Urban-Rural Construction data.
Official figures show about 2 billion sq m are constructed every year - nearly half of the world's total.
"My biggest concern right now is figuring out how to improve energy-saving awareness among residents, who care only about price and location when they buy apartments," Qiu said.
Realtors don't push energy-conservation as a selling point, because buyers seldom consider it, he said.
"If buyers paid about 100-150 yuan more per square meter, they would benefit from saving money on water, electricity and heating over the long term," he said.
Launching pilot BEE programs is a good way to educate the public, Qiu said.
Research by the ministry found 68 percent of Beijing residents said after visiting the site of an energy-saving pilot program in Tangshan, Hebei province, that they would pay more for BEE spaces. Before visiting, just 30 percent said they would pay extra.

3. National Design Competition on Affordable Housing Ongoing

Purpose

The competition aims to implement the government policy on small and medium-sized apartment and solve the housing problems for low-income families.

Organization

Supported: Ministry of Construction, UIA
Organized: Architectural Society of China, Organizing Committee of IAE 2008

Competition Requirements

1. Meet the basic needs of low-income families with consideration of integration of generations, behavior, function and space.
2. Space: 50 ~ 60 sqm.
3. Innovative, both affordable and comfortable
4. People-oriented, provide a safe, comfortable, convenient and healthy environment for families; Local living features should be considered in style, details, colors, material choosing, etc.
5. “Four-Savings” (Energy, Water, Land, Material)

Competitors

Architects, Designers, Students, Teachers, etc. Individually or collectively

Schedule

Application Period: Feb.15th ~ May.30th, 2008
Deadline for Subscription of Works: Aug. 30th, 2008
Judgment and Scoring period: Sep. 2008
Awarding: Oct.28th, 2008
Exhibition: Oct.28th ~ 31st, 2008

Jury

National Design Masters, Government Officials, social opinions will be considered.

Awards

First Prize (2 winners): 50,000 RMB each
Second Prize (5 winners): 20,000 RMB each
Third Prize (10 winners): 10,000 RMB each
Excellence Award: 2000 RMB each
For more details or sponsorship, please contact the organizing committee.

Nick

Add: 4/F,China Building Material Plaza, No.Jia 11, Sanlihe Rd, Haidian District, Beijing, China.
Tel: 86-10-88083839
Fax: 86-10-88082333
E-mail: nickstar@cbme.cn
Website: www.iae-china.com

4. National Design Forum on Affordable Housing to be held during IAE 2008

To implement the government policy on small and medium-sized apartment and solve the housing problems for low-income families. As well as enhancing the sense of social responsibility of Chinese architectural professionals. Under the support of Ministry of Construction and UIA, Architectural Society organized a National Design Competition. All the awarded works will be displayed during China International Architectural Expo 2008.
At the same time, a National Design Forum on Affordable Housing will be held, architects, officials, leaders will sit down together to discuss this hot issue in China.
For more information or sponsorship, please contact the organizing committee.

5. China's building material industry expects fat profit in Q1

China's building material industry may gain hefty profit in the first three months this year, despite the worst snow disaster in fifty years that plagued the country's southern areas.
Building material sector witnessed surging production and sales in the first quarter, helped by booming demand, improved exportation structure and increasing fixed asset investments, the National Development and Reform Commission said in its latest report on the industry.
Gross industrial output value hit 421 billion yuan ($60.27 billion) in the first quarter, posting an increase of 34.6 percent year on year, and the rise was 4.8 percentage points higher over the same period of last year.
According to the report, sales volume increased greatly in the first quarter, pushing up by soaring market demand.
Gross industrial sales value hit 408.2 billion yuan, up 35 percent, and the rise was 4.7 percentage points higher than that of the same period last year.
Profit of building material industry stood at 9.41 billion yuan in the first two months, representing an increase of 61.8 percent over the same period last year, according to the report.
Separately, cement production sector made a profit of 1.26 billion yuan, up 43.2 percent, and the profit of fireproof material sector was 1.62 billion yuan, up 71.8 percent year on year.