The Tenth Five-Year Plan of the Construction Industry

The Tenth Five-Year Plan (2001-2005) stipulates that the construction industry must be promoted, design standard improved and the level of design, construction and management raised. The construction market should be reformed, rectified and standardized to guarantee quality construction projects and implement new construction materials.

During the Tenth Five-Year Plan, China's construction industry has so far enjoyed a good opportunity for development. The construction sector's main tasks are as follows: a more standardized construction market should be established; a construction project price-management system that fits the requirements of the market economy should be set up; a reasonable organizational framework of the sector should be established; a modern enterprise system should be set up in the vast majority of State-owned key enterprises; the quality of construction projects, especially of residences, will be largely improved and heavy casualty rates should be effectively controlled; the quality of the construction sector as a whole must be significantly improved; the Chinese construction industry's position and market share on the international contract market will be promoted; a framework of legal systems concerning the construction sector need to be established.

China's construction industry achieved 646.2 billion yuan in total output value in 2001, accounting for 6.7 percent of the nation's gross domestic product (GDP). China's construction industry realized 704.7 billion yuan in total output value in 2002 -- an increase of 10.54 percent from the previous year's 637.5 billion yuan -- accounting for 6.9 percent of the national GDP.

Construction enterprises reached 45,893 by the end of 2001, employing 21,106,600 people and generating 1,536.156 billion yuan in output value and 402.357 billion yuan in added value. Areas under construction totaled 1,883,286,800 square meters; completed areas covered 976.99 million square meters. Profits totaled 29.439 billion yuan in the year, with taxes at 49.903 billion yuan.

Of the enterprises, 44,997 were Chinese with 20,986,800 staff members. The companies reaped 1,518.595 billion yuan in output value in 2001 and 398.022 billion yuan in added value. Areas under construction numbered 1,874,480,800 square meters and completed areas completed covered 972.532,300 square meters. Profits reached 28.83 billion yuan, with taxes at 49.392 billion yuan.

The figures:
State-owned enterprises: 8,264; employees: 5.9065 million; output value: 536.281 billion yuan; added value: 142.652 billion yuan; areas under construction: 466.2751 million square meters; completed areas: 203.3816 million square meters; total profits: 3.27 billion yuan; taxes: 17.295 billion yuan.

Collective enterprises: 17,276; employees: 6.7299 million; total output value: 332.755 billion yuan; added value: 90.396 billion yuan; areas under construction: 552.0917 million square meters; completed areas: 326.1302 million square meters; total profits: 7.873 billion yuan; taxes: 11.496 billion yuan.

Industrial structure:
The construction industry's total output value was 1,536.156 billion yuan in 2001. Of that amount, 1348.595 billion yuan was generated by civil engineering, which accounted for 87.79 percent of the total; 1008.601 billion yuan by housing construction; 13.396 billion yuan by mine construction and 219.832 billion yuan in the construction of railways, tunnels, highways and bridges, accounting for 65.66, 0.87 and 14.31 percent of the total respectively. The output value of wire lines, pipelines and equipment installation was 138.044 billion yuan -- 8.99 percent of the total, including 68.81 billion yuan from equipment installation -- 4.48 percent of the total. The output value of building retrofitting and decorations was 49.518 billion yuan -- 3.22 percent of the total.

The construction industry has maintained a strong level of development in China in recent years demonstrating a higher growth than that of its gross national product. The industry's output value increased 10.19 percent in 1997, 10.25 percent in 1998, 10.84 percent in 1999, 12.06 percent in 2000 and 22.91 percent in 2001. With the steady development of the national economy, the construction industry will continue its momentum of growth in the coming years.

The following are the development plans for the three municipalities of China during the Tenth Five-Year Plan: Beijing will invest 800 billion yuan in fixed assets; Shanghai, 1,000 billion yuan, including 400 billion yuan in key construction projects; and Chongqing, 520 billion yuan. At the same time, the country plans to inject more than 240 billion yuan into 107 key infrastructure facility construction projects west China. South China's Guangdong Province, for example, is expected to invest 383.2 billion yuan in fixed assets in 2002. Based on the above figures, the total investment scale of China's major provinces and cities will reach 4 trillion yuan in the coming five to 10 years.

(Source: China Statistical Yearbook 2002)

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