What Do You Know About “Constructed by China”

Since the 21st century, with the rapid growth of China’s foreign project contracting, “Constructed by China” has appeared around the world. However, whether it should be encouraged and how to develop it is a problem that perplexes the Chinese government and enterprises. Based on accurate data, this paper analyses the current situation of China’s foreign project contracting and presents its effect on China’s economy. It is concluded that with the support of Go Out Policy, foreign project contracting is going to be a new growth point for Chinese foreign economy and gives a new impetus to Chinese sustained economic development. Therefore, I propose some countermeasures for government and enterprises to develop foreign project contracting, with the hope that they will be helpful. Introduction International project contracting is an important form of a country’s foreign trade. So it’s significant to follow the situation of international construction markets and enterprises so as to verify whether a country has entered the foreign market or not. Low Sui Pheng (1991), using absolute and relative measures, demonstrated that both developed and developing countries offered larger construction markets, so the role of marketing should be extolled in construction, especially international contracting. Gunhan Suat and Arditi David (2005) talked about how construction companies made a decision for international expansion in complex international environment and provided some methods for those companies to test if they are ready to enter foreign markets. Dublin’s Research and Markets (2014) showed that the international construction aggregates markets will grow in every region in recent years. The most authoritative academic journal in America in the field of international construction market, Engineering New-Record (ENR) has been publishing the situation of international project contracting every year and forecasting its prospects including projects and contractors. Under this circumstance, it’s also important for China to research the prospect of foreign projects contracting and the highest usage of it. Therefore, this paper is analyzing the current situation of China’s project contracting and its positive effect on China’s economy. It is also suggesting some effective measures to the government and enterprises to develop the China’s project contracting. The Development of China’s Foreign Project Contracting The history of China’s Foreign Project Contracting China’s foreign project contracting derived from the foreign aid projects in the mid of 20th century and the countries getting aid gradually expanded to Asia, Africa, Latin America and South Pacific. Accepting the suggestions of other countries, China assisted them in self-financing in public projects and infrastructures which had formed the special pattern in China. The Chinese government provided great support to the development of foreign project contracting and put forward some measures. In 2001, the government proposed the Go Out Policy and then kept encouraging the foreign project contracting. In 2013, the government pointed out that both enterprises and individuals were allowed to invest and contract works overseas, which has brought new International Conference on Education Technology and Economic Management (ICETEM 2015) © 2015. The authors Published by Atlantis Press 47 opportunities for China’s foreign cooperation. The Current Situation of China’s Foreign Project Contracting Since 2000, China’s foreign project contracting has been developing continuously, both in the aspect of the value of turnover fulfilled (Fig.1) and the contracted value (Fig.2). According to the National Bureau of Statistics in 2013, the value of turnover fulfilled is 131.74 billion, the annual growth rate of which is 39% and the contracted value reached 171.63 billion. Meanwhile, the scales of projects are expanding. Among all the project contracts the value of 393 project contracts surpassed one hundred million, occupying 66% of the total year. As to the contractors, there are 55 enterprises were selected in the world’s largest 250 international contractors by ENR in 2013. Fig.1. The situation of the value of turnover fulfilled in China’s project contracting Fig.2. The situation of contracted value of China’s project contracting Regional Distribution Until 2006, the diversified international market of China’s foreign project contracting initially came into being. It accounts for a large proportion in Asia and Africa and a small one in Latin America, Europe and North America. We have noticed a rising tendency in foreign project contracting in recent five years (Fig.3). 1317.40 0.00 200.00 400.00 600.00 800.0