Hot market in China

The hot market in China will continue unabated. Construction expenditures in China will increase 11.6 percent annually through 2010, reaching 5.8 trillion yen, according to a new study from The Freedonia Group, a Cleveland-based industry market research firm. In real terms, spending will grow at a 9.7 percent annual rate. Although growth in Chinese construction expenditures will moderate from a blistering 2000-2005 pace, the country will continue to outperform other major national construction markets through 2010. An expanding domestic economy, sustained strength in foreign investment funding, healthy demand for Chinese manufactured goods, and further population and household growth will all work to drive demand for construction in China. Nonbuilding construction will be the fastest growing sector, with expenditures climbing 10.5 percent annually in real terms through 2010. Growth will be driven by government funding for large-scale infrastructure construction like the Beijing-Shanghai High Speed Railway, the West-East Oil Pipeline, the South-North Water Diversion and the “7918 Network” national highway system currently underway. Your comment?