The Chinese construction industry
In the two past decades, the Chinese construction industry has been growing rapidly. The dramatic expansion of manufacturing capabilities and rising consumer consumption have transformed China's society and economy. Far outpacing other economies in the world, China has been the world's fastest growing market for goods and services.
The Chinese economy maintains high growth, with increases in GDP averaging 9% between 1989 and 2022. This has been stimulated by increases in industrial output, imports and exports, consumer consumption and capital investment. Rapid consolidation between medium and large players is anticipated in the coming years, encouraged by the Chinese government in an attempt to regulate industry and to improve competitiveness in the world market.
Although China has enjoyed the benefits of an expanding market for production and distribution, it is suffering from low innovation and investment in research and development and new product development. Economies of scale have yet to be achieved and most domestic manufacturers lack the intellectual property and financial resources to develop their own brand name products.
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