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Infrastructure and construction to China
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Direct access with our industry experts
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This industry-country profile has been compiled by Shiming Tang, Senior Business Development Manager, Austrade Shanghai.
If you have a specific question regarding the information provided, please fill out the following enquiry form.
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(Last updated: 03 Apr 2008)
Trends and opportunities
The market
Transport infrastructure in China is improving, particularly port development and capacity, road and rail networks.
To maintain sustainable development, the Chinese Government will continue to develop infrastructure as part of the long-term strategy in the next 10 to 20 years.
There are several sources of funding for projects:
- Central government budget
- National bond
- Loans from multilateral funding agencies, such as the World Bank, Asian Development Bank and Japan Bank for International Cooperation
- Local government budget
- Private investment
Opportunities
There are increasing openings for Australian exporters and investors in the infrastructure sector. Many of these opportunities will be in China’s more underdeveloped western region, which covers 10 provinces and 56 per cent of China’s land mass.
Opportunities for Australian businesses include:
- Transportation (eg. highways, high speed trains, urban metro systems, etc)
- Gas pipeline design, construction and management
- Natural gas reticulation projects
- Remote area power generation technology
- Air navigation systems and airport construction services
- Ports construction and management
- Environmental (eg. wastewater treatment, surface water management (SWM), air pollution control, etc)
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Tariffs, regulations and customs
China’s customs administration collects import customs duties on import commodities, industrial and commercial consolidated tax, and regulating tax on import commodities.
Foreign exporters sometimes experience difficulties in understanding the application of customs classifications, tariff rates and import controls by local customs officials.
Industry standards
Industry standards for infrastructure projects vary depending on the nature of the project (eg. gas, power, etc) and the product or service to be provided to the project. For building and construction materials there are two commonly applied standards in China:
- National Industry Standard or Industry Standard of the Ministry of Construction (in Chinese language only).
- Quality assurance system for building materials manufacturing - ISO 9001 and ISO 9002.
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Marketing your products and services
Market entry
Early identification of opportunities is the key to Australian business success in infrastructure projects. Australian companies can consider several possible options for market entry:
- Direct export via local agents or distributors.
- Local investment – joint venture, partnership, wholly owned.
- Manufacturing localisation, including technology transfer.
- Development of a strong in-market presence is important to support market development, particularly where products and technologies require service support.
- For supply to large projects, local governments sometimes require the establishment of a local presence.
- The Chinese design institutes often play a critical role in the approval, recommendation and assessment of new products for infrastructure projects.
Distribution channels
Distribution channels will vary depending on the type of project and its location. |
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Contact details
The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.
Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.
Austrade:
- Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
- Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
- Administers the Export Market Development Grants scheme.
- Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
- Provides advice to the Australian Government on its trade and investment development activities.
- Delivers consular, passport and other government services in designated overseas locations.
A list of Austrade offices (in alphabetical order of country) is available.
More information
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au |
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