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China's overseas contracted projects rise in 2016

Xinhua | Updated: 2017-05-23 08:23

BEIJING - China's project contractors witnessed brisk growth in operating income and newly signed contracts overseas last year due to transportation, electricity and construction projects, said a recent industry report.

Combined business revenue from contracted projects overseas increased 3.5 percent year on year to $159.4 billion in 2016, the China International Contractors Association said Monday in a report.

These companies signed new contracts last year totaling $244 billion, surging 16.2 percent year on year in 2016, with 33 such projects worth more than $1 billion each, six more than in 2015, noted the report.

Despite anemic global market demand, the Chinese project contractors' overseas business was buttressed by transportation projects, railways in particular, electricity projects and various construction projects, especially non-residential construction, it added.

Countries along the Belt and Road will continue to be growth engines for Chinese contractors' overseas business, but they are also confronted with challenges including homogeneous competition among peers and mounting financing stress in some African and Latin American countries, it said.

Fang Qiuchen, chairman of the association, suggested increasing financing support to contractors, speeding up business model innovation and improving their risk control capabilities.

The Belt and Road Initiative is a grand plan proposed by China in 2013 to connect Asia with Europe and Africa along - and beyond - ancient trade routes by building a trade and infrastructure network.

The China International Contractors Association was established in 1988 by Chinese international project investors, contractors, labor service companies and related service providers, and has more than 1,300 members.

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