High-quality Development of the Construction Industry, with a Solid Foundation Laid for People's Livelihood and Innovation

High-quality Development of the Construction Industry, with a Solid Foundation Laid for People's Livelihood and Innovation
— Series Report IV on the Economic and Social Development Achievements since the 18th CPC National Congress

Source: National Bureau of Statistics 

Published on: September 19,2022 Characters: 3960

Since the 18th CPC National Congress, under the guidance of the new development philosophy of innovation, coordination, green, openness and sharing, the production scale of China's construction industry has continued to expand, the industry structure and regional layout has been continuously optimized, its role of providing employment has been significant improved, and its status as a pillar industry has been continuously consolidated. It has played an important role in economic and social development, urban and rural construction, and improvement of people's livelihood. China is transforming from "a country of mass construction" to "a country strong in construction".

I. Steady Growth of the Construction Industry, with a Consolidated Function as a Pillar Industry in the National Economy

(I) A new high level seen in the scale of production

Since the 18th CPC National Congress, China's construction industry has actively responded to the risks and challenges of domestic and foreign markets, made the utmost effort to overcome the impact of the COVID-19 pandemic, and achieved stable and healthy development. The proportion of the added value of the construction industry has always remained at about 7% of the GDP, and its function as a pillar industry of the national economy has been consolidated. In 2021, the total output value of the national construction industry enterprises reached RMB 29.3 trillion, an increase of 1.14 times compared with 2012, and the AAGR reached 8.8% from 2013 to 2021; the added value of the construction industry reached RMB 8.0 trillion, accounting for 7.0% of the GDP. From 2013 to 2021, its AAGR reached 5.9%.

With the continuous expansion of the construction scale, the main body of the construction industry market is developing vigorously. By the end of 2021, there were 2.26 million construction enterprises of various types across the country, including 129,000 general contracting and professional contracting construction enterprises (hereinafter referred to as construction enterprises) with construction activities and construction qualification, 53,000 more than the end of 2012. From 2013 to 2021, the number of enterprises increased by an average of 6.1% annually, realizing leapfrog development of the industry scale.

(II) Continuous optimization of industry structure

While the construction industry is growing bigger and stronger, the industry structure is also constantly optimized. Since the 18th CPC National Congress, the concentration of the construction industry has continued to increase, and the market share of Top and Level-I construction enterprises has kept increasing. In 2021, the number of Top and Level-I construction enterprises in China reached 16,000, an increase of 84.3% over 2012, accounting for 12.1% of all construction enterprises, an increase of 0.9 percentage points over 2012. The proportion of the output value of the construction industry reached 68.0%, an increase of 5.6 percentage points over 2012, and the influence of leading enterprises in the construction industry has been further enhanced.

In terms of industries, the civil engineering construction industry and other important infrastructure construction industries have developed rapidly. In 2021, the output value of the national civil engineering construction industry reached RMB 8.4 trillion, an increase of 1.41 times compared with 2012. Among them, the marine engineering construction industry, railway road tunnel & bridge engineering construction, and wiring & pipeline engineering construction industry have all doubled compared with 2012, with annual increase of 4.09 times, 1.59 times, and 1.21 times respectively, contributing to the construction of important infrastructure in China. In 2021, the output value of the housing construction industry reached RMB 17.9 trillion, an increase of 1.06 times over 2012; the output value of the building installation industry reached RMB 1.5 trillion, an increase of 90.1%; the output value of building fitting, decoration and other construction industries reached RMB 1.4 trillion, an increase of 99.6%.

(III) Continuous improvement of regional development

The balance of major regions and sectors continues to improve. In 2021, the output value of the construction industry in the Eastern, Central and Western China doubled over that of 2012. Among them, there was an increase by 1.03 times in Eastern China, 1.67 times in Central China, and 1.60 times in Western China; There was slight decrease of total output value of construction industry in Northeastern China, 36.0% lower than in 2012. The total output value of the construction industry in Central and Western China accounted for 24.7% and 21.6% of the country respectively, 4.9 and 3.9 percentage points higher than in 2012, respectively.

(IV) Significant role in job creation

The steady development of the construction industry continues to provide new jobs for the society. In 2021, the number of employees in the construction industry of the whole society reached 81.8 million, ranking second in the national economic industry category, only lower than the manufacturing industry and serving as an important employment contributor. Among them, the average number of employees in the construction industry with general contracting and professional contracting qualifications reached 61.94 million, an increase of 33.8% over 2012, and an AAGR of 3.3% from 2013 to 2021. The team of professionals in the construction industry continues to grow, and the number of certified practitioners increases year by year. By the end of 2021, there were 6.82 million engineering and technical talents in construction enterprises across the country, an increase of 750,000 from the end of 2012;  there were more than 740,000 registered Level-I construction engineers nationwide, an increase of more than 300,000. Moreover, the construction industry has made important contributions to employing surplus rural labor and relieving employment pressure.  The migrant worker monitoring and survey report of National Bureau of Statistics shows that by the end of 2021, the total number of migrant workers in China reached 292.51 million, of which migrant workers in the construction industry accounted for 19.0% of the employees at the end of the year.

II. Steady Improvement of Economic Performance and Significant Improvement of Development Quality

Since the 18th CPC National Congress, the economic performance of China's construction industry has been continuously optimized, the comprehensive strength has been steadily improved, innovation-driven and green development have continued to demonstrate its effects, the strategy of "going global" has been solidly advanced, and the quality of development has been significantly improved.

(I) Steady growth in economic performance

The labor productivity of construction enterprises has improved significantly, and economic performance has been continuously optimized. By the end of 2021, the labor productivity calculated based on the total output value of the construction industry reached RMB 473,000 / person, an increase of RMB 177,000 / person or 59.6% over 2012; the labor productivity calculated based on the added value of the construction industry reached RMB 129,000/person, which is higher than in 2012 with an increase of RMB 50,000/person, an increase of 62.3%. The improvement of productivity has further improved the profitability of enterprises, and the operating income and profits of construction enterprises have both grown rapidly. In 2021, the national construction industry enterprises achieved operating income of RMB 27.0 trillion, an increase of 1.07 times compared with 2012, and an AAGR of 8.4% from 2013 to 2021; the total profit reached RMB 855.4 billion, an increase of 79.1% from 2012, and an AAGR of 6.7% from 2013 to 2021.

(II) Significant enhancement of overall strength

Focusing on the goal of industrial structure adjustment, the construction industry strives to become better and stronger, and its comprehensive strength has been steadily improved. The first demonstration of the strength is that enterprises are becoming more prosperous. By the end of 2021, the total assets of construction enterprises across the country reached RMB 31.0 trillion, an increase of 1.77 times over 2012, and an AAGR of 12.0% from 2013 to 2021. Secondly, the market capacity of the construction industry has reached a record high. In 2021, construction enterprises signed contracts of RMB 65.7 trillion, an increase of 1.66 times compared with 2012, and an AAGR of 11.5% from 2013 to 2021. Thirdly, the industry's international influence continues to increase. In the 2021 Fortune's global 500 list, there are 10 Chinese companies from the engineering and construction industry, four more than in 2012.

(III) Continued efforts to drive innovation and green development

Leading industrial transformation and upgrading with technological innovation, the modernization of the construction industry chain has been continuously improved. There has been gradually formed a complete pattern in the construction industry including infrastructure, metallurgy, non-ferrous metals, coal, petroleum, chemical, hydropower, water conservancy, and machinery; the construction process gradually expands to upstream exploration and design and downstream engineering supervision; the industry's application capabilities of information technology integration keep improving such as city information model (CIM), building information model (BIM), big data, intelligence, mobile communications, cloud computing, and Internet of Things. A number of major construction technology breakthroughs have been achieved, world-leading engineering projects have been constructed one after another, and construction technology in some fields has reached the world's leading level, such as the high-speed rail project that marks the "speed" of Chinese engineering, and the Hong Kong-Zhuhai-Macao Bridge project that marks the "span" of Chinese engineering, the Shanghai Tower representing the "height" of Chinese engineering, and the world's first demonstration project of the third-generation nuclear power technology independently developed by China, "Hualong One" which represents the "challenge" of Chinese engineering, etc. In the construction of high-speed, alpine, plateau, heavy-duty railways and super-large bridge and tunnel construction technologies, China is already taking a leading position, and the same in other construction technologies such as offshore deep-water port construction, giant estuary waterway regulation, long river section waterway system regulation, and large-scale airport engineering.

With the rapid development of green buildings in China, building energy-saving renovations are advancing in an orderly manner. According to the data of the Ministry of Housing and Urban-Rural Development, by the end of 2020, the cumulative built area of green buildings across the country exceeded 6.6 billion square meters, and the cumulative built area of energy-saving buildings exceeded 23.8 billion square meters. China's energy-saving buildings account for more than 63% of the urban civil building area; more than 1.5 billion square meters of energy-saving renovation of existing residential buildings have been completed in cities and towns across the country, contributing to the reduction of carbon emissions and the gradual realization of the goals of "carbon peaking and carbon neutrality".

(IV) A strong momentum demonstrated in the implementation of the strategy of "going global"

China's construction industry adheres to the principle of unified opening up, and is guided by the "Belt and Road" Initiative to accelerate its pace of "going global". In terms of the construction of the "Belt and Road", China has signed cooperation agreements with more than 170 countries and international organizations to jointly build the "Belt and Road", and has carried out more than 2,000 cooperation projects. After years of cooperative development and construction, it has basically formed a frame network consisting of "six corridors, six connectivity routes and multiple countries and ports”. In terms of international turnover, according to the list of top 250 international contractors released by Engineering News Record (ENR), 78 Chinese companies were included in the list in 2021, and their total business volume accounts for more than a quarter of the 250 companies on the list. China's construction enterprises are actively expanding the overseas market and deeply participating in the planning and construction of major projects in countries and regions along the "Belt and Road". China has successively completed projects such as the China-Myanmar oil and gas pipeline, the Mohammed VI Bridge in Morocco, the Mombasa–Nairobi Standard Gauge Railway, the Stung Trang-Kroch Chhmar Bridge in Cambodia, and the Karot Hydropower in Pakistan. The "China-built" brand has grown steadily and gradually taken root in the international arena.

III. Continuous Infrastructure Improvement for Benefiting People

Since the 18th CPC National Congress, the construction industry has successfully completed a series of infrastructure projects related to the national economy and the people's livelihood, which has greatly improved the travel, communication, education, medical conditions and living environment of urban and rural residents.

(I) Further improved infrastructure

China's construction industry continues to promote the construction of major infrastructure, improve infrastructure for people's livelihood, and make new breakthroughs in the construction of new infrastructure. By the end of 2021, the national railway operating length reached 151,000 kilometers, an increase of 53,000 kilometers compared with the end of 2012, of which the operating length of high-speed rail reached 40,000 kilometers, accounting for more than two-thirds of the world's total high-speed railways; the total length of highways reached 5.281 million kilometers, an increase of 1.043 million kilometers; there were 248 airports with regular flights, 68 more than 2012. As of 2020, the length of urban water supply pipelines across the country reached 1.007 million kilometers, an increase of 415,000 kilometers compared with the end of 2012; the length of natural gas supply pipelines reached 851,000 kilometers, an increase of 508,000 kilometers; the length of drainage pipelines reached 803,000 kilometers, an increase of 364,000 kilometers; there were 2,618 sewage treatment plants, 948 more and a processing capacity increase of 64.2% from 2012. There was a rapid construction of information infrastructure. In 2021, the length of national optical cable lines reached 54.881 million kilometers, an increase of 2.71 times compared with 2012; the number of mobile phone base stations reached 9.96 million, including 1.425 million 5G base stations. The 5G network has covered cities and key counties above the prefecture level across the country. The modern infrastructure system keeps improving with achievements shared by the general public, reasonable layout, complete facilities, complete functions, and high safety and efficiency.

(II) More livable residential housing

Since the 18th CPC National Congress, the housing construction capacity of the construction industry has improved significantly, and the per capita living area has continued to increase. In 2021, the housing construction area of construction enterprises across the country reached 15.75 billion square meters, an increase of 59.7% over 2012, and an AAGR of 5.3% from 2013 to 2021. The per capita housing construction area of urban residents increased from 32.9 square meters in 2012 to 41.0 square meters in 2021. The renovation of shantytowns, urban villages and dilapidated houses was carried out steadily, and urban renewal was promoted in an orderly manner. From 2015 to 2021, more than 31 million houses of different types of shantytowns were renovated across the country, and about 60 million residents were resettled. From 2019 to 2021, a total of 115,000 old residential areas in cities and towns across the country were renovated, benefiting more than 20 million households. Urban renewal and transformation not only improves the housing conditions of residents, but also optimizes urban functions, improves the comprehensive carrying capacity of cities and towns, and allows more people to live comfortably.

(III) The further advancement of the construction of beautiful and livable villages

The construction industry promotes the sharing of development achievements between urban and rural residents by improving rural living standards, infrastructure and ecological environment. Since 2016, more than 6 million dilapidated houses have been renovated for registered poor households in rural areas across the country. In 2020, the renovation of dilapidated houses in rural areas for poverty alleviation was fully completed ahead of schedule. The coverage of rural infrastructure was widened. By 2020, 2.59 million kilometers of water supply pipelines in villages and towns were built, 721,000 kilometers longer than in 2012. Treatment of domestic waste and sewage was strengthened in rural areas. By 2020, the length of drainage pipes in towns and villages across the country reached 222,000 kilometers, 75,000 kilometers longer than in 2012. Moreover, new progress has been made in the construction of rural information infrastructure. Over 99% of administrative villages have access to optical fiber and 4G networks, broadband has been fully accessed in every existing administrative village, and the Internet penetration rate in rural areas has increased to 57.6%.

(IV) The further improvement of public service facilities

China's construction for education, culture, medical care and other social fields has been vigorously promoted, the residents' access to public service facilities has been accelerated, and the equalization of basic public services has been steadily improved. By the end of 2021, there were 2,756 institutions of higher education across the country, with an average annual increase of more than 30 from 2013 to 2021; 15,000 regular high schools, with an average annual increase of more than 100;  295,000 preschool education institutions, with an average annual increase of 11,000. There were 1,031,000 medical and health institutions, with an average annual increase of 8,000; the number of public libraries and museums reached 3,215 and 5,772 respectively, an increase of 139 and 2,703 compared with 2012. The people's sense of gain, happiness and security are more fulfilling, more secure and more sustainable.

Since the 18th CPC National Congress, under the strong leadership of the CPC Central Committee, China's construction industry has continued to grow stronger with remarkable achievements. Standing at a new historical starting point, China's construction industry will unswervingly implement the new development philosophy, seek progress while maintaining stability, carry out reform and innovation, continue to promote high-quality development, and advance towards the goal of "building a country strong in construction".