China’s Involvement in Global Infrastructure

2019-11-04
Price :
Published : Nov-2019
No. of Pages : 50

China’s Involvement in Global Infrastructure

Summary

This report provides a detailed analysis of China’s involvement in global infrastructure.

With its Belt and Road Initiative (BRI), which is now thought to cover 132 countries, China has demonstrated its intention to increase its influence on global infrastructure development, and at the same time exporting its excess contractor capacity. The BRI, which was launched in 2013, is aimed at developing the modern day versions of the land-based “Silk Road Economic Belt” and the “Maritime Silk Road of the 21st Century”. Under the initiative, China is seeking to improve infrastructure in emerging nations across the world, facilitating economic development through companies being able to transport goods more easily and cheaply between countries along various routes. Although there has been increasing wariness among governments in emerging markets over the risks of relying heavily on China for funding and construction contracting, the opportunities provided under the BRI can be attractive for governments with limited funding capacity and rising infrastructure needs. Reflecting the increasing significance of the BRI, according to a recent report from the Emerging Markets Forum, China has committed or dispersed around US$600 billion in loans since 2013 under the initiative, compared to US$490 billion by the group of multilateral development banks comprising the World Bank, the Asian Development Bank (ADB), the African Development Bank (AfDB), and the Inter-American Development Bank (IDB).

China’s main international funding agencies, Export-Import Bank of China (China Exim Bank) and the China Development Bank (CDB), are funding US$334 billion of infrastructure projects globally that are currently in all stages of development up to and including execution, according to GlobalData. Of the total, projects with a combined total of US$249 billion are in execution. Railway projects account for the largest share of funding by sector (31.7%), with the Chinese agencies providing a total of US$105.9 billion, Sub-Saharan Africa taking US$66.6 billion and Eastern Europe US$31.4 billion. There is also substantial Chinese funding of oil and gas projects, although this is dominated by LNG projects in Russia. Power generation projects are a key target for China to expand its influence, with China Exim Bank and the CDB combined funding power generations projects with a total value of US$86.1 billion

Key Highlights

China’s involvement in infrastructure developments globally already goes beyond officially designated BRI and China-funded projects; according to GlobalData, Chinese contractors are involved in projects outside China at various stages of development with a total value of US$1.10 trillion. Much of this activity is in South and South-East Asia, with the total value of projects in which Chinese contractors are involved in the region totaling US$426.0 billion, of which US$298.4 billion relates to projects already in execution, with India, Pakistan and Bangladesh being key markets in South Asia. The Middle East and North Africa (MENA) as well as Sub-Saharan Africa are also target markets for Chinese contractors. In MENA the value of projects in which Chinese contractors are involved totals US$227 billion, while in Sub-Saharan Africa the value stands at US$240.0 billion, according to GlobalData.

Europe and Latin America are relatively small markets for Chinese contractors, but the total values of projects in which Chinese contractors are involved, US$71.1 billion and US$72.7 billion respectively, are still sizeable and a reflection of the increasingly global spread of works. However, with the recent incorporation of several Latin American countries into the BRI, China’s influence in Latin America is further strengthening. In January 2018, China officially invited Latin America to join its BRI as part of its push to include the region into its global reach. In the advanced markets of Western Europe and North America, as well as China’s North Asian rivals of Japan and South Korea, Chinese contractors face intense domestic competition and are involved in very few projects. The EU, the US and Japan are also engaged in their own initiatives to broaden their influence and build closer economic ties with key emerging market regions.

Chinese contractors have expanded their activities internationally at a rapid pace in recent years. Based on all projects tracked by GlobalData, annual spending on projects (outside of China) involving Chinese contractors increased from US$65.5 billion in 2014 to US$118.9 billion in 2018. Assuming all projects proceed as planned and that spending is evenly distributed over the execution phase of projects, spending is estimated to rise to US$133.4 billion in 2019 before reaching US$162.9 billion in 2020. Spending on projects with Chinese contractors was highest in South-East Asia up to 2018, but it is projected that Sub-Saharan Africa will top the regional list in 2019, with spending on these projects totaling US$31.1 billion, ahead of Middle East and North Africa with US$29.7 billion, and South-East Asia with US$25.4 billion.

Reflecting limited capacity and technological know-how of domestic contractors in Sub-Saharan Africa, Chinese contractors are involved in 41% of the region’s infrastructure projects by value, with the share being as high as 74% in airport construction projects, and 63% in marine and inland water projects (mostly port facilities). Chinese contractors also have a significant involvement in road and railway projects in Australia, but this is owing mainly to John Holland Group being a 100%-owned subsidiary of China Communication Construction Company (CCCC).

Scope

– An overview of China’s involvement in global infrastructure, with a focus in the Belt and Road Initiative (BRI)
– Analysis of the influence of China’s BRI in key regions: Asia-Pacific, Latin America, Europe, the Middle East and North Africa, and Sub-Saharan Africa.
– Details of the project pipelines in the key regions based on projects in which Chinese contractors are involved, including a listing of key projects.

Reasons to buy

– Assess the current state of Chinese involvement in global infrastructure construction.
– Better understand projects currently under construction with Chinese involvement and those that are likely to begin construction in the near future.
– Gain insight into which Chinese construction companies are most heavily involved in infrastructure construction outside it country borders.

Filed in: Manufacturing
Publisher : GlobalData
More Reports
Title Price Buy Now

Ball Valves Market With COVID-19 & Oil Price Crisis Impact Analysis By Type (Trunnion-mounted, Floating, Rising Stem), Material, Size, End-User (Oil & Gas, Energy & Power, Water & Wastewater Treatment), and Region – Global Forecast to 2025

The ball valves market was valued at USD 8.1 billion in 2020 and is projected to reach USD 14.7 billion by 2025. It is expected to grow at a CAGR of 12.5% during the forecast period. Increasing demand for valves from healthcare and pharmaceuticals industries due to outbreak of COVID- 19 pandemic, need for replacement of outdated ball valves and adoption of smart valves, rising focus on industrialization, urbanization, and smart city development, and rise in new nuclear power plants projects and upgrade existing ones are the key driving factors for the ball valves market. “Based on the size, ball valves sized1” to 6” to account the largest share during 2020–2025.” Several factors need to be considered while selecting the correct valve size for the required application. If th......
$4950

Impact of COVID-19 on Construction Industry Market by Type (Residential, Non-Residential, Heavy & Civil Engineering) and Region – Global Forecast to 2021

“The construction industry is projected to register a CAGR of 1.2% during the forecast period.” The global construction market size is expected to decline from USD 11,217.4 billion in 2019 to USD 10,566.8 billion in 2020. However, the industry will show signs of recovery in 2021 and reach a market size of USD 11,496.7 billion, projecting a CAGR of 1.2% between 2019 and 2021. An increase in automation in public spaces, along with the rising awareness about antibacterial construction materials, is expected to boost the construction industry post COVID-19 pandemic. However, shutdown of manufacturing facilities, non-availability of raw materials, and impact on supply chain and logistics is expected to restrain the industry growth. “Heavy & civil engineering sector to be the fas......
$5650

Heat Pump Water Heater Market by type (Air Source, Geothermal), Storage (Up to 500 L, 500–1000 L, Above 1000 L), Capacity (Up to 10 kW, above 10 kW), Refrigerant (R410A, R407C, R744), End-User (Residential, Commercial, Industrial), Region – Global Forecast to 2026

“The global heat pump water heater market size is projected to grow at a CAGR of 6.8%, from 2020 to 2026.” The global heat pump water heater market size is projected to reach USD 2.1 billion by 2026 from an estimated value of USD 1.4 billion in 2020, at a CAGR of 6.8%. Factors driving the growth of the heat pump water heater market include the energy efficient technology along with the usage of non conventional sources of energy to heat the water. In addition, supportive regulations and grants for using renewable sources of energy in different applications are also expected to play a key role in the growth of this market during the forecast period. “The Air Source segment is expected to hold the largest share of the heat pump water heater market, by type, during the forecast pe......
$5650

Industrial Agitators Market with COVID-19 Impact Analysis by Mounting (Top-mounted, Side-mounted, Bottom-Mounted), Model (Portable Agitators, Drum Agitators), Component (Impellers, Sealing Systems), Form, Industry, and Region – Global Forecast to 2025

“The growing demand for customized agitators is set to drive the Industrial Agitator Market. The global industrial agitator market size is projected to grow from USD 2.2 billion in 2020 to USD 2.7 billion by 2025; it is expected to grow at a CAGR of 4.1% during the forecast period. The growing demand for customized agitators and the increasing need for energy efficiency, flow maximization, rapid mixing, and other advancements are the major drivers for the industrial agitators market. The rising demand for high-performance mixing devices, and growing manufacturing sector and process industries are also driving the market. On the other hand, the high maintenance cost of industrial agitators is a major restraining factor for this market. The pharmaceutical industry segment of the mark......
$4950

Construction in Key US States (2020 Update) – Project Insight

Construction in Key US States (2020 Update) - Project Insight Summary GlobalData is tracking 12,260 construction projects in the US, both in the public and private sector, at all stages of development from announcement to execution; collectively, these projects are valued at US$3.9 trillion. The top 10 selected US states account for nearly 61% of the entire US construction market. With annual expenditure reaching over US$1.4 trillion in 2019, the US construction industry remains one of the largest in the world. Last year, the industry added 5.6% to the US economy and employed 5.3% of the country's total full-time workforce, according to the Bureau Economic Analysis (BEA). Nevertheless, construction output fell from 2.2% in 2018 to -0.1% in 2019 as political and trade tensions between th......
$1950

Dual Chamber Prefilled Syringes Market by Material (Glass and Plastic), Indication (Hemophilia, Schizophrenia, Endometriosis, Erectile Dysfunction, and Diabetes), Product (Liquid/Powder, Liquid/Liquid), and Region – Global Forecast to 2025

The increasing number of lyophilized drugs is projected to drive the dual chamber syringes market.” The global dual chamber syringes market size is projected to grow from USD 131 million in 2020 to USD 182 million by 2025, at a compound annual growth rate (CAGR) of 6.8% between 2020 and 2025. The global dual chamber syringes industry has witnessed growth primarily. The global dual chamber prefilled syringes market is witnessing growth because of the growing demand for drug delivery systems, with the growing pharmaceutical industry in the emerging economies. The increasing number of lyophilized drugs is also a key driver for demand for dual chamber prefilled syringes, as this type of drug delivery system increases the shelf- life of the drugs. “Glass material segment is projected ......
$5650

Valve Driver Market with COVID-19 Impact, by Function (Solenoid, Proportional), Valve Type (Conventional Control Valve, Expansion Valve), End-User (Commercial & Residential, Industrial, and Motion Equipment), Region – Global Forecast to 2025

“Valve driver market to grow at CAGR of 4.3% from 2020 to 2025” The global valve driver market size is expected to grow from USD 421 million in 2020 to USD 519 million by 2025, at a CAGR of 4.3%. The growth of this market is mainly driven by Increase in government regulations and policies for saving energy and increase in focus on enhancing efficiency and power consumption. Integration of IIoT technology in industrial valve drivers and increase ind emand of valve drivers in commercial & residential end users provide lucrative opportunities for the players in the valve driver market. "Expansion valves to grow at highest CAGR during the forecast period” Expansion valve drivers are the drivers for the management of ON/OFF and stepper electronic expansion valves with integ......
$5650

Rain Gutter Market by Application (Residential, Commercial), Material Type (Aluminum, Steel, Vinyl, Fiberglass, Others), and Region (North America, Europe, Asia Pacific, MEA, South America) – Global Forecast to 2025

“Growing need for rainwater harvesting and increasing repair and maintenance activities due to worst weather are set to drive the rain gutter market.” The global rain gutter market size is estimated to be USD 7.0 billion in 2020 and projected to reach USD 7.9 billion by 2025, at a CAGR of 2.5%. The market has observed stagnant growth and expected to grow at same growth rate as the parent construction industry growth is stagnant. However, increasing need for rain water harvesting, health and safety related issue because of excess rainfall, increased hurricane and other natural calamities causing damage to the existing infrastructure are the factors expected to drive market demand for rain gutters. “Fiberglass Material: The fastest-growing segment of the rain gutter market, by ma......
$5650

Dairy Processing Equipment Market by Type (Pasteurizers, Homogenizers, Mixers & Blenders, Separators, Evaporators & Dryers, Membrane Filtration Equipment), Operation (Automatic and Semi-Automatic), Application, and Region – Global Forecast to 2025

“Rising production and consumption of milk and other dairy products along with increased automation in dairy product manufacturing are projected to drive the dairy processing equipment market” The global dairy processing equipment market size estimated at USD 9.2 billion in 2020 and is projected to grow at a CAGR of 5.4% to reach USD 12.0 billion by 2025. The market has a promising growth potential due to several factors, including the rising production and consumption of milk and other dairy products along with increased automation in dairy product manufacturing. In order to prepare butter, cheese, yogurt, ice cream, and other dairy products various processes have been developed and implemented by the dairy industry. These processes have been designed to utilize various properti......
$4950

Instrumentation Valves and Fittings Market with COVID-19 Impact Analysis by Product (Valves, Fittings, and Actuators), Industry (Oil & Gas, Food & Beverages, Chemicals, Healthcare, Pulp & Paper, and Energy & Power), and Region – Global Forecast to 2025

“Chemical industry to witness a higher CAGR during the forecast period.” The global instrumentation valves and fittings market size was valued at USD 2.4 billion in 2020 and is projected to reach USD 3.7 billion by 2025. It is expected to grow at a CAGR of 9.4% during the forecast period. Surging demand for valves from healthcare and pharmaceuticals industries due to outbreak of COVID-19 pandemic, growing requirement for reducing excessive noise, pressure, vibration, and cavitation in critical industrial processes, increasing industrialization and urbanization, along with growing number of smart city initiatives, and rising need for connected networks to maintain and monitor varieties of equipment in plants are the key driving factors for the instrumentation valves and fittings mark......
$5650
We use cookies to deliver the best possible experience on our website.
By continuing to use this site, or closing this box, you consent to our use of cookies. To learn more, visit our Privacy Policy