EU Tour – Working-level meeting on Construction WG

2017-02-07 | All chapters

MB explain the recent developments that if taken by the word foreign players should feel optimistic: XJP speech and SCLAO Decision No.5 (i.e. opening up for design and infrastructure). Then he passed to explain the new report the chamber is preparing on China Manufacturing 2025 and the concerns that arise from such strategy.

Frustration as the position paper has been repeating the same issue. Only opening that has been in the recent years is in real state, particularly in the residential sector. However, this is a tough time for this sector due to overcapacity.

The 13 FYP talks about the 3x100 million, initiative to urbanise the living condition of people. Then the NDRC issued a plan on small towns in order to boost the development of rural areas. But if we get back to the key points of the position paper, there has not been real and effective implementation for the service sector. Nowadays, European players are struggling in a more competitive market. The real estate market is suffering and it only can cut on quality of the materials and service of professionals. The state owns the design firm and the civil sector is suffering.

In relation to materials and equipment are still struggling with issues of standards, tax on imported materials.

In the last position paper, the working group downgraded its requests. Foreign companies cannot join tenders as local proposer. Even cannot be officially named in a tender. All is under Chinese companies. This carries problems like lack of payments and theft of property design.

DG Grow was interested in know what it can do for EU players, MD responded that should have a dialogue with MOHURD and NDRC and try to get foreign players to be part of tendering for projects. They should also be able to keep the designs presented and not lose the ownership of the design.

DG Grow mentioned that they have been in contact with the European Contractors and the key concerns they have got regarding China are related to market access barriers, negotiation of GPA, need of reciprocity rules, buy china and foreign contractors do not have the possibility to enter (only if project allows international investors)

MB and XSP agreed to pass the translation of SCLAO Decision No 5 and DG GROW will follow up with the European International Contractors association and will put the EIC in touch with MB.