According to PRNewswire, a new report, “Construction in China – Key Trends and Opportunities to 2024” shows massive construction undertakings in the country in the first half of the decade. This occurs amid slowdowns in United States construction due to material shortages.
The Chinese construction industries have rebounded quickly after the COVID-19 pandemic. Partially as an effort to reduce the economic fallout of the disease, China resumed 90% of all infrastructure projects in as early as March 2020.
The industry is expected to grow 4.7% in 2021 based on new infrastructure projects, including 5G networks, artificial intelligence, the Internet of Things (TIOT), and data centers. Altogether, the China Electronic Information Industry Development (CCID) forecasts that the country will spend CNY10 trillion (U.S. $1.4 trillion) on new projects before 2025. Additional growth will come from renewable energy and residential construction.
What this means for the United States is uncertain, but it is forecast that materials shortages that already plague the domestic construction industry will continue in some areas. It is also expected that the price of raw materials will increase. In the meantime, China’s position as an economic powerhouse will continue to grow.
Chinese growth in construction, coupled with slowdowns in the United States might necessitate reexamination of existing trade deals between the two countries.