Foreign contracted projects
In 2023, the scale of China's foreign contracted project business will continue to grow, of which the business scale of markets along the "Belt and Road" will continue to expand, accounting for more than 80%; The market distribution in all regions is generally stable, with more than eighty percent of the business concentrated in Asia and Africa, of which Asia accounts for more than half, Europe is facing bottlenecks, and North America is difficult to enter. The foreign contracted engineering industry is widely distributed, and transportation, general construction, electric power engineering and petrochemical industry are still the most advantageous fields for foreign contracted projects in the mainland. In the top 10 list of various professional fields, except for the field of communication engineering, there are Chinese enterprises shortlisted. In the 2023 ENR list of the world's 250 largest international contractors, China continues to rank first among other countries in terms of the number and business scale of the list, demonstrating the strong resilience and competitiveness of the industry's development. Chinese enterprises are characterized by a large overall business scale and a relatively small proportion of international business, and there is still room for development.
In recent years, global risks have shown an upward trend, and the challenges faced by China's foreign contractors have also increased significantly: on the macro side, the sluggish recovery of the world economy has hindered the growth of the industry, high inflation and tightening financial conditions have eroded corporate profit margins, the rising debt levels of emerging markets and developing economies have led to prominent financing problems and default risks, and the deterioration of the international trade and investment environment has increased the investment review, sanctions, government intervention and public opinion risks faced by enterprises. Geopolitical uncertainty has also led to further escalation of security and policy risks; In terms of industry, the intensification of competition in the international engineering market has led to a narrowing of market space and a decline in profit margins, as well as the crisis and transformation of the global supply chain, a new round of industrial transformation, and the global ecological transformation have brought multiple challenges to Chinese engineering investment and construction enterprises, such as business model upgrading and green transformation.
In recent years, Southeast Asian countries such as Indonesia, Singapore and Malaysia have become important overseas markets for Chinese engineering investment and construction enterprises by virtue of their advantages in economic growth and market environment.
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