The Global Problem Facing Chinese Construction Firms

4322 Words Nov 25th, 2015 18 Pages
1. Introduction
Zhao and Shen (2008) and a number of other recent researchers considered that the emerging problem facing Chinese Construction Firms (CCFs) with regard to competitiveness is their insufficient share in the international markets (Liu, et al., 2013; ENR, 2014). Chinese contractors have captured the market lead in the African construction market, but challenges in the European and American markets still remain (ENR, 2014). This is evidenced by the inclusion of 62 CCFs in the top 250 global contractors list in the Engineering News Record (ENR 2014); with these 62 Chinese firms accounting for 14.5% of the total international revenue in 2013. In comparison with Chinese contractors, the international revenue of 58 European contractors accounted for 50% of the total international revenue in 2013 (ENR, 2014). This suggests that Chinese contractors lack an element of international competitiveness, when compared to their Western counterparts. Nevertheless, China?s international construction enterprises are emerging as the stronger competitors and have become increasingly active in recent years in the international markets (Zhao and Shen, 2008; Liu, et al., 2013).
One of key elements of CCFs? successful increased share of the international market is due to Chinese government support in the form of subsidies but more importantly bilateral agreements (Pheng et al, 2004). For instance, in the 1950?s the Chinese government was able to secure agreements with foreign…
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