ABSTRACT
This chapter assesses the impact of the economic reforms upon the construction industry. It shows that the heavy demand for construction caused by the rapid economic growth cannot be satisfied by China’s prevailing resources physical, technological or managerial. Domestic infrastructure bottlenecks are clearly beginning to constrain the rate of growth. The rapid growth since 1991 has increased the pressure on already strained transport and energy supplies. The concept of ‘non-productive construction’ as an element of capital construction indicates the manner in which the perceived need to increase productive capacity has dominated planners’ minds in the face of shortages of funds and materials. In fact, the construction industry plays a very important role in the national economy. Due to the insufficiency of the legal system and the complex administration procedures, the progress of the reform of the construction price mechanism has been very slow.
