Business / Industries

Overseas Chinese contractors surf big wave of new projects

By Gao Yuan (China Daily) Updated: 2014-02-28 08:22

"Beijing Construction Engineering Group has been very active in that country and gained a good reputation from previous projects. The local government literally dragged the Chinese company into the deal," said Zhang.

A total of 55 Chinese companies were listed in the top 250 contractors in 2013 by Engineering News-Record, a popular industry magazine. The average revenue for the companies broke $1.2 billion, a 6.4 percent year-on-year increase, said the magazine.

Overseas Chinese contractors surf big wave of new projects

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China is likely to receive more orders for high-speed railway projects, one of the best known high-tech export products from China.

Thailand, Hungary, Serbia and Russia are already in talks with China on introducing high-speed railways, said Zhang.

In addition, China was striving to lift the quality of overseas labor.

China started to send about 150 nursing workers to Germany last year, where there is a need for roughly 40,000 carers for senior citizens.

The number of overseas Chinese workers increased 15,000 in 2013, with the total amount officially standing at 527,000, according to the association.

Angola in Southwest Africa and Algeria in the northern part of the continent were the biggest destinations for Chinese construction workers. Developed economies in Asia, including Japan and Singapore, were the top markets for non-construction workers.

Zhang from the association estimated the increase in outbound workers is losing its edge in terms of payment but skilled workers will play an increasingly important role in the years to come.

Security concerns in the biggest contract destinations may also harm Chinese companies businesses as well as threaten worker's lives, the association warned.

An armed attack targeting a Chinese company that left one Chinese worker dead and six others injured in Zambia on Feb 13 was the latest testimony to the dangerous living condition many Chinese workers are facing.

Moreover, the sluggish economy in Latin America nations may further damage Chinese contractors because the region has started to become an important source of orders in recent years, according to the association.

"Chinese contractors have to keep an eye on funding difficulties faced by some large projects in South America while most local policies in Central America countries may not be in favor of them," said Zhang.