歐盟企業(yè)在中國建議書（2024-2025）建設(shè)工作組（英文）

Europeanchamber中國歐盟商會

ConstructionWorkingGroup

KeyRecommendations

1.ContinuetoPromoteCircularDevelopmentoftheBuiltEnvironmentto

SupportDecarbonisationGoals

?Implementamandatorygreenbuildinglabellingschemetoensurecoherenceandcompatibilitywithinternationalstandards.

?InvolveEuropeancompaniesintheimplementationprocessofgreenbuildingstandardsandthecalculationofcarbonemissionsstandards.

?DrawontheexpertiseofEuropeancompaniestodevelopknowledge-sharingplatformsandpublicawarenesscampaignsforindustrystakeholders.

2.AllowEuropeanCompaniesGreaterAccesstotheBiddingProcessfor

GovernmentProcurementWork

?JointheWorldTradeOrganization’s(WTO)GovernmentProcurementAgreement(GPA)toallowforeigncompaniesgreateraccesstothebiddingprocessforgovernmentprocurementworkandensurethatconstructionservicesarecovered.

3.ImproveMarketAccessforEuropeanConstructionServiceProviders

SectionFour:Services

(CSP)toEncourageExpertiseSharingandtoSupportthe‘BetterHouse’Initiative

?PromoteregulatoryreformstoeasemarketaccessforEuropeanCSPs.

?IncludeEuropeanfirmsintheimplementationofthe‘betterhouse’initiative.

?FacilitatepartnershipsbetweenEuropeanCSPsandChinesestakeholderstosharebestpracticesandtechnologies.

?Allowmutualrecognitionofdegrees,certificatesandexperiencetofurtherleveltheplayingfieldforforeign-investedconstructionanddesignfirms.

?AllowqualificationexamstobeconductedinEnglishtoofferfairopportunitiesforforeignprofessionals.

4.EnsureaFair,BalancedandOpenMarketforForeignInvestmentinthe

RealEstateSector

?IssuefurtherimplementationrulesforCircular122andtheQualifiedForeignLimitedPartnership(QFLP)investmentschemetopromoteafairmarketenvironmentforforeigncompaniesinvestingintheChineserealestatemarket.

?Facilitatemarketaccessforforeign-investedrealestateenterprisestoabsorbimmovableassetsfromilliquidorinsolventChinesedevelopers.

318ConstructionWorkingGroup

RecentDevelopments

MarketPerformancein2023

TheconstructionsectorinChinaincludesthreecore

segments—residentialproperty,commercialpropertyandinfrastructure.In2023,theconstructionmarketsizeinChinawasvaluedatUnitedStatesdollar(USD)4.7trillion,withitsannualaveragegrowthrateprojectedtobeoverthreepercentfortheperiod2025–2028.AccordingtotheNationalBureauofStatistics(NBS),theconstructionindustry’svalueaddedincreasedby7.2percentyear-on-year(y-o-y)inthethirdquarterof2023.1However,thesectorremainsweakduetoadownturnintherealestateindustry.In2023,propertysalesbyvaluedroppedtounderChineseyuan(CNY)12trillionfrom15trillionin2021,whilenewhomesalesdroppedbysixpercent.Atthesametime,newresidentialdevelopmentshavefallento637.4millionsquaremetresfromthe2022figureof817.3squaremetres.2AccordingtoChinaIndexHoldings,aslandsaleshaveslumped,17majorcitieshaveabolishedpriceceilingsonresidentiallandsoldatgovernmentauctionstoincreaselocalrevenue.3Despitefallingresidentialsales,datafromearly2024indicatesthatstate-backeddevelopersaregeneratingmoreprofitsthantheirprivately-ownedorforeigncompetitors.4

Atthesametime,propertysectorvulnerabilitieshaveyettobeaddressed,asnon-viabledevelopershaveavoidedbankruptcythroughrulesthatallowlenderstodelayrecognitionoftheirbadloans.Structuralfactors,suchaspopulationdeclineandtheslowdownofurbanisation,willincreasepressureonthemarketasdemandfornewhousingdeclines.TheInternationalMonetaryFund(IMF)predictsthatrealestateinvestmentwillfall30to60percentbelowits2022level,reboundingonlygraduallyin2024.5However,

1ChinaConstructionMarketSize,TrendAnalysisbySector,CompetitiveLandscapeandForecastto2028,GlobalData,11thMarch2024,viewed2ndApril2024,<

/store/report/china-construction-market

-analysis/>

2Routley,N,China’sRealEstateCrisis,ShowninTwoCharts,VisualCapitalist,30thJanuary2024,viewed2ndApril2024,<

/china

-real-estate-boom-and-crisis/>

3Qing,N,InDepth:China’sCashStrappedLocalGovernmentsStruggletoReviveLandSales,CaixinGlobal,4thJanuary2024,viewed2ndApril2024,<https://www./2024-01-04/in-depth-chinas-cash-strapped-local-governments-

struggle-to-revive-land-sales-102153118.html>

4Ao,Y,China’sstate-backeddevelopersgrowearningsasbuyerslookforsafetyinhomedelivery,shunningtroubledbuilders,SCMP,21March2024,viewed2ndApril2024,<

/business/china-business/article/3256254/

chinas-state-backed-developers-grow-earnings-buyers-look-safety-home-delivery-shunning-troubled>

5Hoyle,H,andJain-Chandra,S,China’sRealEstateSector:ManagingtheMedium-TermSlowdown,InternationalMonetaryFund,2ndFebruary2024,viewed2ndApril2024,<

/en/News/Articles/2024/02/02/cf

-chinas-real-estate-sector-managing-the-medium-term-slowdown>

2024/2025

EuropeanBusinessinChinaPositionPaper歐盟企業(yè)在中國建議書

sincethestartof2024,theNBShasreportedaslowingrateofdeclineinpropertyinvestment,whichhasbeenreceivedasasignthatthemarkethasbeguntostabilise.6

Policiestargetingthedevelopmentandreboundoftherealestatesectorwereintroducedinearly2024.IntheNoticeoftheMinistryofHousingandUrban-RuralDevelopment(MOHURD)andtheNationalFinancialRegulatoryAdministration(NFRA)onEstablishingaCoordinationMechanismforUrbanRealEstateFinancing,Chineseregulatorspromotedtargetedsupporttoaddressthefinancingneedsofrealestatedevelopers.7AccordingtotheMOHURD,sinceitsestablishment,276citiesacross31provinceshavesetupalocalmechanism,andaround6,000realestateprojectshaveappliedforfinancing.8

ChineseofficialsalsoapprovedmorethanUSD17billioninloansfor‘whitelist’realestateprojectstoensurethedeliveryofpromisedhousing.However,analystsbelievethiswillhavealimitedimpactonnewinvestmentinthesector.9ZhengShanjie,headoftheNationalDevelopmentandReformCommission(NDRC)furtherindicatedsupportfortheprivatesectorregardingaccesstomajornationalengineeringprojects.10

‘BetterHouse’—AGreener,SmarterandSaferPathTowardsCarbonNeutrality

Followingthe2022GeneralSpecificationforBuildingEnergyConservationandRenewableEnergyUtilisation,releasedbytheMOHURDin2022,theministryhaspromotedfurthereffortstowardthelow-carbonor

6Xie,Y,Chinapropertyinvestmentseenstabilisingasanalystscountonfinancinglifeline,demandtospurrecovery,SCMP,18thMarch2024,viewed2ndApril2024,<

/business/china-business/article/3255817/china-property

-investment-seen-stabilising-analysts-count-financing-lifeline-demand-spur-recovery>

7NoticeoftheMinistryofHousingandUrbanandRuralDevelopmentandtheNationalFinancialRegulatoryAdministrationonEstablishingaCoordinationMechanismforUrbanRealEstateFinancing,MOHURDandNFRA,12thJanuary2024,viewed2ndApril2024,<

/cn/view/pages/ItemDetail

.html?docId=1147470&itemId=928>

8Du,Y,TendaysafterthetwomeetingswhichledtotheestablishmentoftheUrbanRealEstateFinancingCoordinationMechanism,276citieshaveestablishedanurbanrealestatefinancingcoordinationmechanism,SecuritiesDaily,2ndMarch2024,viewed2ndApril2024,<

/finance/

hongguanjingji/2024-03-02/A1709307442135.html>

9Huang,J,ChinaApproves$17BillioninLoansforWhite-ListProjects,WallStreetJournal,21stFebruary2024,viewed2ndApril2024,<https://www.wsj.com/world/china/china-approves-17-billion-in-loans-for-white-list-projects-36f8b8d0?mod=china_news_article_pos2>

10Privatesectortogetactivesupportformajorprojects,ChinaDaily,4thJanuary2024,viewed2ndApril2024,<

/a/202401/04/

WS65967c70a3105f21a507a992.html>

ConstructionWorkingGroup319

SectionFour:Services

SectionFour:Services

Europeanchamber中國歐盟商會

carbon-neutraldevelopmentofthesector.11Atthe2023MOHURDannualworkconferenceinDecember2023,theministryannouncedits‘betterhouse’initiative,withtheaimofpromotinghigh-quality,low-carbonandgreendevelopmentofthebuiltenvironment.12TheworkinggroupbelievesitsimplementationwillhelprealiseChina’s30/60Goals13whilepromotingtherenovationmarkettoboostconsumption,localmanufacturingandregionalgrossdomesticproduct.

Intandem,theNoticefromtheMinistryofIndustryandInformationTechnology,theStateAdministrationforMarketRegulation(SAMR),andTenOtherDepartmentsonIssuingtheImplementationPlanfortheHigh-qualityDevelopmentoftheGreenBuildingMaterialsIndustryisaimedatfacilitatingthetransitiontolighterandgreenerconstructionmaterialstosupportsustainabilityefforts.14

Inearly2024,theMOHURDpromoteddeeperreformandstandardisationofthebuiltenvironmentinrelationtodecarbonisation.Severalpublicconsultationshavebeenpublished,includinganoticesolicitingpublicopinionsontheNationalEvaluationStandardforGreenIndustrialBuildings(RevisedDraftforComments).15Theworkinggroupwelcomesprogressonstandardsettingforgreenindustrialbuildingsandawaitsthepublicationofthefinaldraft.

KeyRecommendations

1.ContinuetoPromoteCircularDevelopment

oftheBuiltEnvironmenttoSupportDecarbonisationGoals

Concern

Proceduralandlegalinefficienciespreventthe

11GeneralSpecificationforBuildingEnergyConservationandRenewableEnergyUtilisation,MOHURD,13thOctober2021,viewed2ndApril2024,<https://www./gongkai/zhengce/zhengcefilelib/202110/20211013_762460.html>

12MinistryofHousingandUrban-RuralDevelopment:2024Formulating‘BetterHouse’standards,ChinaConcreteandCementProducts,28thDecember2023,viewed2ndApril2024,<

/p/675034558

>

13The30/60GoalsareChina’sdualtargetsofpeakingCO2emissionsbefore2030andachievingcarbonneutralityby2060.

14NoticefromtheMinistryofIndustryandInformationTechnology,theStateAdministrationforMarketRegulation,andTenOtherDepartmentsonIssuingtheImplementationPlanfortheHigh-QualityDevelopmentoftheGreenBuildingMaterialsIndustry,SAMR,29thDecember2023,viewed2ndApril2024,<

/zw/zfxxgk/fdzdgknr/rzjgs/art/2024/

art_60d4b98bfcc3462c84dfc712ab7965d0.html>

15NoticeonPubliclySolicitingOpinionsontheNationalEvaluationStandardforGreenIndustrialBuildings(RevisedDraftforComments),MOHURD,26thFebruary2024,viewed2ndApril2024,<

/gongkai/

zhengce/zhengcefilelib/202403/20240313_777010.html>

320ConstructionWorkingGroup

deploymentofnewtechnologiesandalternativebuildingmaterialsinzero-carbonbuildingrenovation,hinderingboththeconstructionsectorandChinafrommeetingitsoverallemissionreductiontargets.

Assessment

DecarbonisationandrenovationofthebuiltenvironmentinChinaarecrucialtosupportingandacceleratingChina’slow-carbontransition.Accordingly,China’scurrentdecarbonisationinitiativesincludeplanstopromotethedevelopmentofthecirculareconomyoverthenextseveralyears,includingthroughinnovationofkeytechnologies,resourcerecyclingandwastereduction.16TheMemorandumofUnderstandingonCircularEconomy,signedbytheEuropeanUnion(EU)andChinaatthe20thEU-ChinaSummiton17thJuly2018,coversthelifecycleofconstructionmaterialsasakeyareawherecirculardevelopmentshouldbepromoted.17

Abreakdownofcarbonemissionsthroughoutthelifecycleofexistingbuildingsindicatesthat30percentofhiddenemissionscanbeattributedto‘hiddencarbon’(carbongeneratedduringthedesignandconstructionphase),while70percentofcarbonemissionscanbeattributedto‘operationalcarbon’(carbongeneratedfrombuildingoperations).18Renovationandpromotionofazero-carbonbuiltenvironmentisthuskeytoreducingoperationalcarbonemissionstomeetChina’semissionreductiontargets.

Theworkinggrouprecognisesseveralpositivepolicydevelopmentsinthisarea.In2023,policysupportforgreendevelopmentinChina’sfirst-tiercitieswasnoticeablystrengthened,asevidencedbytheissuanceofnewguidelinesaimedatpromotingthedevelopmentofzero-carbonbuildings.19Forexample,theNoticeoftheBeijingMunicipalCommissionofHousingandUrban-RuralDevelopmentandtheBeijingMunicipalBureauofFinanceonIssuingtheImplementationRules

16Chinaplanstopromotecirculareconomy,Xinhua,7thJuly2021,viewed2ndApril2024,<

/statecouncil/ministries/202107/07/content

_WS60e59652c6d0df57f98dc8be.html>

17Roberts,G,ChinaandEUSignMemorandumofUnderstandingonCircularEconomy,resource.co,17thJuly2018,viewed2ndApril2024,<

https://resource.co/

article/china-and-eu-sign-memorandum-understanding-circular-economy-12744>

18Zero-CarbonTechnology:ImplementingEffectivePoliciesforArchitectureDecarbonisation,Ugreen,9thJanuary2024,viewed2ndApril2024,<https:///s/rU0CG8BDwAVYIJcelAM9CA>

19ShanghaiGreenArchitectureDevelopmentReport,InstituteofMetaverseandCarbonNeutrality,23rdOctober2023,viewed2ndApril24,<https://mp.weixin./s/l9zF00hrxutoCtF38NVeEw>

fortheManagementofBeijing'sGreenDevelopmentIncentiveFundDemonstrationProjects(Trial)promotestheuseofgreenerandlighterconstructionmaterialsthroughincentivesforcompanieswhoprovidesuchproducts.20

Inaddition,theChineseGovernmenthasimplementedaseriesofpoliciesandstandards,suchastheTechnicalStandardforNearlyZeroEnergyBuildingsandtheTechnicalStandardforZeroCarbonBuildings(DraftforComments),guidingthedevelopmentofgreenbuildingsandcommunities.Thisnotonlyoffersextensivemarketspaceforthegreentransformationofrealestatebutalsoindicatesthatlow-carbondevelopmentisthefuturedirectionofthemarket.21

However,proceduralandlegalhurdlesremainregardingthedeploymentofnewtechnologiesandbuildingmaterialsinzero-carbonbuildingrenovation.Morethan10standardsareusedtoassessdifferenttypesofbuildingsatvariousstagesoftheconstructionprocess.Atthesametime,theapplicationofgreenbuildinglabelsremainsvoluntary.22Theworkinggrouprecommendsmovingfromavoluntarytoamandatorygreenlabellingsystemtoencouragethedecarbonisationofthebuiltenvironment.

Furthermore,greenbuildingdesignanddevelopmentrequireathoroughunderstandingofthedifferentparametersinfluencingtheoverallperformanceofabuilding.Crucialsustainabilityandemissionsindicators,suchaspowerconsumption,peakdemandtime,energyprocessingdata,controlpoints,humidityandheating,ventilationandairconditioning(HVAC),mustbemonitoredthroughsoftwareinstalledatcriticalpointsthroughouttheentirestructureofabuilding.Whiletherehasbeenanincreasedadoptionoftheinternetofthings(IoT),artificialintelligence(AI)andbigdataanalyticstechnologiesintheconstructionsector

20NoticeoftheBeijingMunicipalCommissionofHousingandUrbanRuralDevelopmentandtheBeijingMunicipalBureauofFinanceonIssuingtheImplementationRulesfortheManagementofBeijing'sGreenDevelopmentIncentiveFundDemonstrationProjects(Trial),BeijingMunicipalCommissionofHousingandUrban-RuralDevelopment,27thJune2023,viewed2ndApril2024,<

/bjjs/gcjs/jzjnyjcjg/tzgg/tzgg98/326139587/index.shtml

>

21China’sRealEstateMarket:Thestatus,thetrend,thepoliciesforastructuralupgrading,CNEUCN,14thMarch2024,viewed2ndApril2024,<https://mp.weixin./s/kRCdA38BclVQeNtKT19eIg>

22GreenLabelManagementScheme,MOHURD,8thJanuary2021,viewed2ndApril2024,<

https://www./gongkai/zhengce/

zhengcefilelib/202101/20210115_248842.html>

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EuropeanBusinessinChinaPositionPaper歐盟企業(yè)在中國建議書

globally,thereisstillagapintheapplicationofthesetechnologiesinChina.InEurope,opendatabasesandtoolsthatutilisesuchtechnologiestocalculatetheenvironmentalperformanceofbuildingelementsaresharedwithindustryprofessionals,certificationbodiesandotherstakeholders.23Thisdatasharinghelpstoavoidinefficienciesaslessonsarelearnedfromotherprojects.

TheworkinggroupbelievesthatEuropeancompanies’expertiseindatamonitoring,datasharing,andhigh-efficiencyproductsalignswithChina’sgoalsfortheapplicationandintegrationofnewtechnologiesinthesector—andwiththe2021OpinionsonPromotingGreenDevelopmentinUrbanandRuralConstruction.24

Atthesametime,theuseofgreenerandlightermaterialswillultimatelydeterminethesuccessofdecarbonisationeffortsinthesector.Mostoftheconstructionindustry’scarbonemissionscomefrommaterialsusedinconstruction,suchassteelandcement,whicharesomeofthemosthigh-polluting,energy-intensiveindustriesduetotheirrelianceoncoal.25Eventhoughpoliciesprovideincentivestocompaniesthatmeetsustainabilitystandards,thereisstillnostandardiseddatabaseforeco-friendlymaterialsandtheirperformance.

WhilethetransitiontogreenconstructionhasbeengainingmomentuminChina,itisfurtherhinderedbyalackofunderstandingamongkeyplayers,decision-makersandconsumers.Professionaltrainingingreenbuildingpractices,principlesofsustainabilityandgreentechnologiesisthereforeessential.Publicawarenesscampaignsaimedatincreasingdemandforzero-carbonbuildingrenovationshouldalsobelaunched.Europeanlanddevelopers,suppliers,distributors,architects,engineers,designersandprojectmanagershavedeepknowledgeinthisarea,havingworkedwithmajorgreen

23AboutTOTEM,TOTEMCreate|Evaluate|Innovate,2024,viewed2ndApril2024,<

https://www.totem-building.be/pages/about.xhtml#2.1

>

24OpinionsonPromotingGreenDevelopmentinUrbanandRuralConstruction(inChinese),StateCouncil,21stOctober2021,viewed2ndApril2024,<https://www./zhengce/2021-10/21/content_5644083.htm>

25Lu,H,You,K,Feng,W,Zhou,N,Fridley,D,Price,LanddelarueduCan,S,2024,ReducingChina’sBuildingMaterialEmbodiedEmissions:OpportunitiesandChallengestoAchieveCarbonNeutralityinBuildingMaterials,iSciencevol.27,no.3,viewed2ndApril2024,<

/science/article/

pii/S2589004224002499?ref=pdf_download&fr=RR-7&rr=88dd9e3e0f2d04d1>

ConstructionWorkingGroup321

SectionFour:Services

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Europeanchamber中國歐盟商會

buildingcertificationsystemsfordecades.26Theworkinggrouprecommends,therefore,thatChinacollaboratewithEuropeanplayerstodevelopknowledge-sharingplatforms,training,andeducationalprogrammesthatcandrawontheexpertiseofEuropeancompaniesandinstitutions.

Recommendations

?Implementamandatorygreenbuildinglabellingschemetoensurecoherenceandcompatibilitywithinternationalstandards.

?InvolveEuropeancompaniesintheimplementationprocessofgreenbuildingstandardsandthecalculationofcarbonemissionstandards.

?DrawontheexpertiseofEuropeancompaniestodevelopknowledge-sharingplatformsandpublicawarenesscampaignsforindustrystakeholders.

2.AllowEuropeanCompaniesGreater

AccesstotheBiddingProcessforGovernmentProcurementWork

Concern

Foreign-investedcompaniesfaceconstraintsduetounequaltreatmentwhenbiddingforgovernmentprocurementprojects.

Assessment

Chinacurrentlyhastwosetsoflawsgoverningpublictendering:theGovernmentProcurementLaw(GPL)andtheTenderandBiddingLaw(TBL).27&28

AfteraccedingtotheWorldTradeOrganization(WTO)in2001,Chinacommittedtojoiningtheorganisation’s

26Internationally,threemajorcertificationsystemsforgreenbuildingswereestablishedinthe1990s:theBritishBuildingResearchEstablishmentEnvironmentalAssessmentMethodin1990;followedbytheHighEnvironmentalQualitydevelopedbytheFrenchin1996;andfinally,theLeadershipinEnergyandEnvironmentalDesignbytheUSGreenBuildingCouncilin1998.ZeinalHamedani,A,andHuber,F,2012,AcomparativestudyofDGNB,LEEDandBREEAMcertificatesystemsinurbansustainability,TheSustainableCityVII:UrbanRegenerationandSustainability,WITTransactionsonEcologyandTheEnvironment,vol.1551,pp.121–132,viewed9thApril2024,WITPress,<https:///Secure/elibrary/papers/SC12/SC12011FU1.pdf>

27Broadlyspeaking,theGPLcoverscentralandsub-centralgovernmentpurchases.See:GovernmentProcurementLawofthePeople’sRepublicofChina,StandingCommitteeoftheNPC,30thAugust2007,viewed2ndApril2024,<

/zcfg/gjfg/201310/t20131029

_3587339.htm>

28TheTBLregulatesallstate-ownedenterprisetenders,inparticular,large-scaleinfrastructureprojects(suchasinconstruction,aviation,shipping,engineering,architecture,transportation,powerandwater),aswellaslarge-scale,privatelyinvestedprojectsforpublicinterest(mainlyjointventures).See:LawofthePeople’sRepublicofChinaonBidInvitationandBidding,C.cn,12thFebruary2011,viewed3rdApril2024,<

/china/

LegislationsForm2001-2010/2011-02/12/content_21908008.htm>

322ConstructionWorkingGroup

GovernmentProcurementAgreement(GPA)“assoonaspossible”.29On21stOctober2019,Chinasubmitteditsseventhoffer(sixthrevisedoffer)foraccessiontotheagreement,whichincludedfurthercommitmentstoopenmarketaccesstoforeigncompanies.30ChinacurrentlyhasGPAobserverstatus.

Inthiscontext,on3rdDecember2019,theNDRC

proposedrevisionstotheTBLandinvitedpubliccomments.TheserevisionsarepartofabroadereffortbyChinatolookintoitspublicprocurementframework,whichhasremainedlargelyunchangedforover20

31years.

TheMinistryofFinance(MOF)isexamininghowtheapplicationoftheGPLconflictswiththeTBL,China’sGPAaccessionandrecentreformstothecountry’sprocurementregime.32ThisisalsoinlinewiththeForeignInvestmentLawthattookeffectatthebeginningof2020.33Accordingtosome,theGPL“ismuchmorecloselyalignedwithGPArequirementsthantheTBL”.34TheproposedrevisionstotheTBLbytheNDRCcould,therefore,positivelyimpactandleadtoincreasedtransparencyandimprovedfairnessintenderingactivities,whichwouldbringitmoreinlinewithGPArequirements.35ThiswouldhelpChinapavethewaytowardsfulfillingitsWTOcommitments.However,itremainstobeseenhowtherevisionswillbeimplemented,asforeigncompaniesstillfacemanyissuesobtaininggovernmentprocurementwork.

IntheEuropeanChamber’sBusinessConfidenceSurvey2024,50percentofcivilengineeringandconstructioncompaniesreportedmissingbusinessopportunitiesduetomarketaccessrestrictionsandregulatorybarriers,whichincludebarrierstogovernment

29Wang,P,2009,China’sAccessiontotheWTOGovernmentProcurementAgreement—ChallengesandTheWayForward,JournalofInternationalEconomicLaw,vol.12,no.3,pp.663–706,viewed4thApril2024,<https:///jiel/article-abstract/12/3/663/817776>

30ChinaSubmitsRevisedOfferforJoiningGovernmentProcurementPact,WTO,23rdOctober2019,viewed3rdApril2024,<

/english/news

_e/news19_e/gpro_23oct19_e.htm>

31Grier,J,China:RevisingTenderingandBiddingLaw,PerspectivesonTrade,13thApril2020,viewed3rdApril2024,<

/?p=6363

>

32GovernmentProcurementLaw(DraftforComments),MOF,8thDecember2020,viewed3rdApril2024,<

/hudong/2020-12/08/content

_5567837.htm>;AdministrativeMeasuresfortheManagementofGovernmentProcurementDemand,MOF,10thMay2021,viewed3rdApril2024,<

/

guizhangzhidu/202105/t20210510_3699403.htm>

33LawofthePeople’sRepublicofChinaonForeignInvestment,MOJ,22ndJune2022,viewed3rdApril2024,<

/2021-06/22/c

_634956.htm>

34Grier,J,China:RevisingTenderingandBiddingLaw,PerspectivesonTrade,13thApril2020,viewed3rdApril2024,<

/?p=6363

>

35Ibid.

procurementprocesses.36ThisdataillustratestheimportanceofChina’stimelyaccessiontotheGPAandanoptimisedrevisionoftheTBL.Also,itisworthnotingthatthelongerChinafailstoaccedetotheGPAandopenupitsprocurementmarkets,themorelikelyitistoendupinthecrosshairsoftheEU’sInternationalProcurementInstrument,whichcameintoforceon29thAugust2022andhasrecentlytargetedthemedicaldevicesector.37&38

Recommendation

?JointheWTO’sGPAtoallowforeigncompaniesgreateraccesstothebiddingprocessforgovernmentprocurementworkandensurethatconstructionservicesarecovered.

3.ImproveMarketAccessforEuropean

ConstructionServiceProviders(CSP)toEncourageExpertiseSharinginOrdertoSupportthe‘BetterHouse’Initiative

Concern

CSPs—includingarchitects,designers,projectmanagersandcontractors—facedifficultiesenteringtheChinesemarket,whichpreventsthemfromsupportingChina’snational‘betterhouse’initiativethroughthesharingofexpertiseandtechnology.

Assessment

Accountingforover20percentofgrossdomesticproduct(GDP)39and39percentofthetotalloanbalanceinthefinancialsystem,China’srealestateindustryisofsystemicimportancetoitsoveralleconomy.40In2023,theMOHURDpublishedthepolicyfocusoftherealestateindustryforthenextseveralyears.Itsoverarchingaimistoadvancethedesignof‘betterhouses’throughtheoptimisationofurbanplanning,constructionandrealestategovernance.

36EuropeanBusinessinChinaBusinessConfidenceSurvey2024,EuropeanUnionChamberofCommerceinChina,10thMay2024,viewed16thMay2024,<

/en/publications-business

-confidence-survey>

37TheEU’sInternationalProcurementInstrument—IPI,EUR-Lex,8thNovember2022,viewed3rdApril2024,<https://eur-lex.europa.eu/EN/legal-content/summary/the-eu-s-international-procurement-instrument-ipi.html>

38CommissionlaunchesfirstinvestigationunderEUInternationalProcurementInstrument,EuropeanCommission,24thApril2024,viewed7thMay2024<https://ec.europa.eu/commission/presscorner/detail/en/ip_24_2044>

39Liu,Z,andStemp,D,ThePBoCPropsUpChina’sHousingMarket,CouncilonForeignRelations,21stMarch2023,viewed25thApril2024,<

/

blog/pboc-props-chinas-housing-market>

40China’sRealEstateMarket:Thest