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China Construction Industry Report 2025 | Output to Grow by 3.2% in Real-terms This Year, Supported by Investments in Infrastructure and Energy Sectors - Forecasts to 2029

1. China's construction sector grew 3.1% YoY in Q1 2025. 2. 182 major projects launched in Q1 2025 with CNY340 billion investments. 3. Residential sector sluggishness may weigh on overall construction output. 4. US-China trade war concerns could deter consumer and investment growth. 5. Long-term growth projected at 4.2% annually between 2026 and 2029.

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FAQ

Why Bullish?

The overall investment and growth projections are favorable for infrastructure development, likely benefiting IEA.

How important is it?

Construction growth in China and investment in energy infrastructure align with IEA’s focus on energy projects.

Why Long Term?

Significant infrastructure plans span through 2029, aiming for sustained development of renewables and reactors.

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According to the National Bureau of Statistics (NBS), the construction industry's value-add grew by 3.1% year on year (YoY) at the end of Q1 2025, preceded by YoY growth of 3.8% at the end of Q4 2024 and 4.1% at the end of Q3 2024. According to the State Taxation Administration, China launched 182 major projects in Q1 2025, requiring total investments of CNY340 billion ($47.4 billion). Indeed, this was driven by large-scale transport infrastructure and manufacturing plant developments. However, in the short to medium term, the sluggishness in the residential sector is expected to weigh on the overall construction output, owing to the prevalence of low housing demand and rising debt amongst property developers. Furthermore, the rising concern over a trade war between China and the US, with the US imposing of tariff on Chinese imports, is expected to further weigh on consumer and investment in the country. According to the State Council of the People's Republic of China, the total Foreign direct investment (FDI) fell by 27.1% YoY in 2024, reaching CNY826.3 billion ($115.3 billion).The analyst expects the construction industry to record an average annual growth rate of 4.2% between 2026 and 2029. This will be supported by investment in transport infrastructure and industrial projects, coupled with the government's plan to achieve net-zero emissions of greenhouse gases by 2060. In line with this, in September 2024, the Shanghai local government announced the Shanghai Action Plan for Accelerating the Green and Low-carbon Transformation (2024-27). This plan aims to deploy solar capacity across Shanghai with a combined installed capacity of 4.5 million kW by 2027 and acceleratethe construction of offshore wind power plants. The government approved the construction of ten new nuclear reactors in April 2025, with construction expected to start in 2026 and grid connection anticipated by 2032. The total investment for these projects is estimated at CNY200 billion ($27.9 billion), averaging about CNY13.3 billion ($2.7 billion) per reactor. Additionally, growth within the construction industry will be supported by government investments as part of the 14th Five-Year Plan (2021-25) that focuses primarily on innovations, digitalization, the modernization of industrial systems, and low carbon emissions. The plan outlined the goal of the construction of 150 new reactors by 2035 with a total estimated investment of CNY3.1 trillion ($432.6 billion). Scope Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in China, featuring details of key growth drivers.Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sectorAnalysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.Listings of major projects, in addition to details of leading contractors and consultants Reasons to Buy Identify and evaluate market opportunities using our standardized valuation and forecasting methodologiesAssess market growth potential at a micro-level with over 600 time-series data forecastsUnderstand the latest industry and market trendsFormulate and validate business strategies using the analyst's critical and actionable insightAssess business risks, including cost, regulatory and competitive pressuresEvaluate competitive risk and success factors Key Topics Covered:1 Executive Summary2 Construction Industry: At-a-Glance3 Context3.1 Economic Performance3.2 Political Environment and Policy3.3 Demographics3.4 Risk Profile4 Construction Outlook4.1 All Construction OutlookLatest news and developmentsConstruction Projects Momentum Index 4.2 Commercial Construction OutlookProject analyticsLatest news and developments 4.3 Industrial Construction OutlookProject analyticsLatest news and developments 4.4 Infrastructure Construction OutlookProject analyticsLatest news and developments 4.5 Energy and Utilities Construction OutlookProject analyticsLatest news and developments 4.6 Institutional Construction OutlookProject analyticsLatest news and developments 4.7 Residential Construction OutlookProject analyticsLatest news and developments 5 Key Industry Participants5.1 Contractors5.2 Consultants6 Construction Market Data7 Appendix For more information about this report visit https://www.researchandmarkets.com/r/5llhv6 About ResearchAndMarkets.comResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

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