Page 174 - 2023 White Paper on the Business Environment in China
P. 174
3 White Paper on the Business Environment in China
China's infrastructure spending. The other favored the cycle of construction and demolition are crucial
investment of local governments are industrial if China is to make a meaningful reduction in the
parks providing low-cost facilities to businesses. sector. Since 2013 energy efficient buildings have
China plans to construct or restore 58,000 km of been promoted. Studies put energy loss through
expressways by 2035, implying a sharp slowdown walls from buildings in China at between 23%
in the pace of annual building compared with and 43%. Meanwhile, the average lifespan of a
the past five years. As part of an effort to build building in China is just 35 years versus 74 years in
a more digital economy, China's “East Data West the US and 132 years in the UK. With the Chinese
Computing” plan involves building huge data government now emphasizing refurbishment
centers in poorer Western provinces to hold data instead of demolition and rebuilding, the average
generated by internet companies based in the lifespan of a building in China is likely to reach its
east. The central government sees data-center designed lifespan of 50 years. Plans call for the
construction as a way to spread the benefits of the refurbishment and modernization of 219,000 old
digital economy beyond developed coastal cities, urban communities built before the year 2000.
with the added benefit of better insulating China's Both new and existing buildings with vertical green
domestic market from external shocks (Hancock). walls and green roofs are playing an increasing
role. Nature-based solutions are quite popular in
Green Construction China especially for landscape architects to green
more urban areas and buildings to meet carbon
China, the world's largest construction market, sequestration goals. China's green building market
is implementing measures to reach peak carbon was valued at US$178 billion in 2021 and had been
emissions by 2030 and carbon neutrality by 2060. growing at a compounded annual growth rate of
Building construction and operation account 12.7% since 2017. On an internationally recognized
for 16% and 22%, respectively, of total carbon standard, there are also concrete signs of
emissions in China. The main goals of the 14th improvement with China topping LEED certification
Five-Year Plan are to improve the quality of green (Leadership in Energy and Environmental Design)
building development; improve energy efficiency for a number of projects outside the US for six
in new buildings; promote renewable energy consecutive years. The five-year plan targets for
applications; conduct building electrification around a third of new buildings to be prefabricated.
programs; and promote innovative green One immediate benefit of this is less on-site waste
construction technologies. Under China's 30-60 with a target of 300 tons or less per hectare.
pledge, the country aims to peak CO2 emissions Prefabricated concrete components are suitable for
by 2030 and become a carbon-neutral economy different building types, and increase the integrated
by 2060. application of high-performance concrete, high-
strength steel bars, energy dissipation and shock
The Ministry of Housing and Urban-Rural absorption, and pre-stressing technologies. China
Development’s fourteenth five-year plan (2021- also intends to help green the industry using big
2025) for the construction industry insisted on data and the Internet of things. Robotics will also
greening the sector and highlighted the use of play a key role. The industry is likely to see the most
prefabrication and robots. The refurbishment of use of robots made in sensing, intelligent control
existing buildings rather than their demolition and and optimization, multi-machine collaboration,
replacement was also emphasized. One of the and human-machine collaboration.
ways of achieving the objectives is by encouraging
the refurbishment of existing buildings rather than Real Estate
demolishing old buildings and constructing new
ones in their place. Under the Building Energy China's central government is not likely to spend
Efficiency and Green Building Development plan, it billions to save the struggling real estate sector, even
is proposed that by 2025, the area of energy-saving if foreign investors are hoping for a massive bailout.
renovation of existing buildings will be over 350 A year after Chinese developer Evergrande's debt
million m2. Both energy efficiency and breaking problems began rattling investors, the country's
174
China's infrastructure spending. The other favored the cycle of construction and demolition are crucial
investment of local governments are industrial if China is to make a meaningful reduction in the
parks providing low-cost facilities to businesses. sector. Since 2013 energy efficient buildings have
China plans to construct or restore 58,000 km of been promoted. Studies put energy loss through
expressways by 2035, implying a sharp slowdown walls from buildings in China at between 23%
in the pace of annual building compared with and 43%. Meanwhile, the average lifespan of a
the past five years. As part of an effort to build building in China is just 35 years versus 74 years in
a more digital economy, China's “East Data West the US and 132 years in the UK. With the Chinese
Computing” plan involves building huge data government now emphasizing refurbishment
centers in poorer Western provinces to hold data instead of demolition and rebuilding, the average
generated by internet companies based in the lifespan of a building in China is likely to reach its
east. The central government sees data-center designed lifespan of 50 years. Plans call for the
construction as a way to spread the benefits of the refurbishment and modernization of 219,000 old
digital economy beyond developed coastal cities, urban communities built before the year 2000.
with the added benefit of better insulating China's Both new and existing buildings with vertical green
domestic market from external shocks (Hancock). walls and green roofs are playing an increasing
role. Nature-based solutions are quite popular in
Green Construction China especially for landscape architects to green
more urban areas and buildings to meet carbon
China, the world's largest construction market, sequestration goals. China's green building market
is implementing measures to reach peak carbon was valued at US$178 billion in 2021 and had been
emissions by 2030 and carbon neutrality by 2060. growing at a compounded annual growth rate of
Building construction and operation account 12.7% since 2017. On an internationally recognized
for 16% and 22%, respectively, of total carbon standard, there are also concrete signs of
emissions in China. The main goals of the 14th improvement with China topping LEED certification
Five-Year Plan are to improve the quality of green (Leadership in Energy and Environmental Design)
building development; improve energy efficiency for a number of projects outside the US for six
in new buildings; promote renewable energy consecutive years. The five-year plan targets for
applications; conduct building electrification around a third of new buildings to be prefabricated.
programs; and promote innovative green One immediate benefit of this is less on-site waste
construction technologies. Under China's 30-60 with a target of 300 tons or less per hectare.
pledge, the country aims to peak CO2 emissions Prefabricated concrete components are suitable for
by 2030 and become a carbon-neutral economy different building types, and increase the integrated
by 2060. application of high-performance concrete, high-
strength steel bars, energy dissipation and shock
The Ministry of Housing and Urban-Rural absorption, and pre-stressing technologies. China
Development’s fourteenth five-year plan (2021- also intends to help green the industry using big
2025) for the construction industry insisted on data and the Internet of things. Robotics will also
greening the sector and highlighted the use of play a key role. The industry is likely to see the most
prefabrication and robots. The refurbishment of use of robots made in sensing, intelligent control
existing buildings rather than their demolition and and optimization, multi-machine collaboration,
replacement was also emphasized. One of the and human-machine collaboration.
ways of achieving the objectives is by encouraging
the refurbishment of existing buildings rather than Real Estate
demolishing old buildings and constructing new
ones in their place. Under the Building Energy China's central government is not likely to spend
Efficiency and Green Building Development plan, it billions to save the struggling real estate sector, even
is proposed that by 2025, the area of energy-saving if foreign investors are hoping for a massive bailout.
renovation of existing buildings will be over 350 A year after Chinese developer Evergrande's debt
million m2. Both energy efficiency and breaking problems began rattling investors, the country's
174
