Page 212 - 2019 White Paper on the Business Environment in China
P. 212
9 White Paper on the Business Environment in China
2.5 Construction and Real Estate
Background speed up approval times for projects such as building
subways, houses and roads. The new government
China’s construction market continues procedures would split that time almost in half from
to grow even as the economic 200 days to 120 days. The results will be promoted
growth is slowing. China will maintain its position as the nationwide in 2019. According to the circular, the entire
world’s largest construction market and will account for approval procedures will be divided into four phases
a significant share of all new global construction for the — initiating project and land use planning approval,
near future as the country progress in its central National engineering construction approval, operation approval,
New-type Urbanization Plan that envisions 60 percent and completion approval and inspection — and will
of the population living in cities by 2020. Property and be headed by four departments. Some procedures,
construction together account for 13.3 percent of the such as filing construction contracts, were canceled,
economy, with property alone directly impacting 40 while other procedures, such as joint inspection and
other industries. Driven by surge in market conditions mapping, were merged. The government also delegated
and technological advancements, construction has power to lower levels regarding certain approval items,
witnessed strong growth in terms of sales. With regard to changed management methods, reordered approval
investment opportunities and product sales, the sector is procedures, and put in place the approval model in which
offering strong growth prospect for both domestic and an application is approved based on the applicant’s
international companies. pledge to comply with the requirements. Also, a new
approval system will be in place by 2019 that offers
Regulations one-stop services that require one application and only
one form to fill out for all procedures. The government
China will channel more energy into improving safety also enhanced supervision with new approaches, by
conditions in the construction sector as the number of introducing random checks and a credit and information
accidents at construction sites has been on the rise during system (Administrative Approval).
recent years. The Ministry of Emergency Management
(MEM) said it will toughen safety supervision, including According to Dezan Shira & Associates’ China Briefing,
better on-site management and more efforts to eliminate the procedures were first introduced in 16 pilot regions:
safety hazards, to curb the growing trend of accidents. Beijing, Shanghai, Nanjing, Guangzhou, Shenzhen,
Construction companies will be urged to shoulder their Weinan, Taijin, Chongqing, Shenyang, Dalian, Xiamen,
responsibilities. The construction sector has seen the Wuhan, Chengdu, Guiyang, Yan’an, and Zhejiang in 2018.
most workplace accidents of all industries, including The government aims to have national implementation
manufacturing, mining, and trade, for nine consecutive by the first half of 2019. The government plans to build a
years, with the figure up 4.3 percent in the year to date. unified national construction approval and management
The MEM data showed building collapses, falls from system by 2020. The moves to shorten the business
heights, and tower crane and lifter accidents were the registration and construction project approval processes
most common types of accidents. Workplace safety are part of a wider government campaign to cut red
risks are expected to remain high, as more construction tape, eliminate government overlap, and improve ease of
projects have broken ground since June 2018. (Xinhua, conducting business in the country (Lin).
China Moves to Improve).
Construction
Traditionally, approval for major construction projects
could take up to a year of red tape. The State Council Chinese policymakers have aimed to restructure its
General Office released a circular in May 2018 that should economy to be less driven by exports and more focused
212
2.5 Construction and Real Estate
Background speed up approval times for projects such as building
subways, houses and roads. The new government
China’s construction market continues procedures would split that time almost in half from
to grow even as the economic 200 days to 120 days. The results will be promoted
growth is slowing. China will maintain its position as the nationwide in 2019. According to the circular, the entire
world’s largest construction market and will account for approval procedures will be divided into four phases
a significant share of all new global construction for the — initiating project and land use planning approval,
near future as the country progress in its central National engineering construction approval, operation approval,
New-type Urbanization Plan that envisions 60 percent and completion approval and inspection — and will
of the population living in cities by 2020. Property and be headed by four departments. Some procedures,
construction together account for 13.3 percent of the such as filing construction contracts, were canceled,
economy, with property alone directly impacting 40 while other procedures, such as joint inspection and
other industries. Driven by surge in market conditions mapping, were merged. The government also delegated
and technological advancements, construction has power to lower levels regarding certain approval items,
witnessed strong growth in terms of sales. With regard to changed management methods, reordered approval
investment opportunities and product sales, the sector is procedures, and put in place the approval model in which
offering strong growth prospect for both domestic and an application is approved based on the applicant’s
international companies. pledge to comply with the requirements. Also, a new
approval system will be in place by 2019 that offers
Regulations one-stop services that require one application and only
one form to fill out for all procedures. The government
China will channel more energy into improving safety also enhanced supervision with new approaches, by
conditions in the construction sector as the number of introducing random checks and a credit and information
accidents at construction sites has been on the rise during system (Administrative Approval).
recent years. The Ministry of Emergency Management
(MEM) said it will toughen safety supervision, including According to Dezan Shira & Associates’ China Briefing,
better on-site management and more efforts to eliminate the procedures were first introduced in 16 pilot regions:
safety hazards, to curb the growing trend of accidents. Beijing, Shanghai, Nanjing, Guangzhou, Shenzhen,
Construction companies will be urged to shoulder their Weinan, Taijin, Chongqing, Shenyang, Dalian, Xiamen,
responsibilities. The construction sector has seen the Wuhan, Chengdu, Guiyang, Yan’an, and Zhejiang in 2018.
most workplace accidents of all industries, including The government aims to have national implementation
manufacturing, mining, and trade, for nine consecutive by the first half of 2019. The government plans to build a
years, with the figure up 4.3 percent in the year to date. unified national construction approval and management
The MEM data showed building collapses, falls from system by 2020. The moves to shorten the business
heights, and tower crane and lifter accidents were the registration and construction project approval processes
most common types of accidents. Workplace safety are part of a wider government campaign to cut red
risks are expected to remain high, as more construction tape, eliminate government overlap, and improve ease of
projects have broken ground since June 2018. (Xinhua, conducting business in the country (Lin).
China Moves to Improve).
Construction
Traditionally, approval for major construction projects
could take up to a year of red tape. The State Council Chinese policymakers have aimed to restructure its
General Office released a circular in May 2018 that should economy to be less driven by exports and more focused
212
