New project starts have declined sharply since 2021 as real estate investment weakens, while completions continue to support overall construction activity.
China’s construction sector is undergoing a structural shift. While overall construction output has remained broadly stable through 2024 and into Q1 2026, the underlying pipeline has weakened materially. New project starts have declined sharply since 2021, reflecting a sustained slowdown in real estate development activity, while completions have held up as developers prioritise delivery of existing projects.
This divergence points to a system increasingly driven by legacy activity rather than new demand. Real estate investment, historically the backbone of construction, has remained subdued post-2021, indicating tighter funding conditions and a more cautious development environment. At the same time, policy support and project completion requirements have helped stabilise output in the near term.
Overall, China’s construction market remains large, but future growth will depend less on expansion and more on the pace and direction of a gradually adjusting real estate sector.
Also by ANDAMAN PARTNERS:
ANDAMAN PARTNERS supports international business ventures and growth. We help launch global initiatives and accelerate successful expansion across borders. If your business, operations or project requires cross-border support, contact connect@andamanpartners.com.
ANDAMAN PARTNERS Attended the Australia Governance Summit 2026 in Sydney
ANDAMAN PARTNERS Co-Founder Kobus van der Wath attended the Australia Governance Summit (AGS26) in Sydney, Australia.
ANDAMAN PARTNERS Wishes You a Happy and Prosperous Year of the Horse!
Compliments of the Chinese Lunar New Year to all our clients, customers, suppliers and partners.
ANDAMAN PARTNERS to Attend Investing in African Mining Indaba 2026 in Cape Town
ANDAMAN PARTNERS Co-Founders Kobus van der Wath and Rachel Wu will attend Investing in African Mining Indaba 2026 in Cape Town, South Africa.
GCC Trade Expansion Is Increasingly Supported by Diversified Regional Demand
Strong export performance, sustained import growth and diversified demand across the GCC have raised the region’s strategic importance.
India Remains Heavily Dependent on Imported Energy, Electronics and Industrial Inputs
Energy, electronics and industrial inputs continue to dominate India’s imports, highlighting persistent external dependence.
Digitally Delivered Services Have Become the Fastest-Growing Layer of Global Trade
Digital services exports have significantly outpaced commercial services and goods trade since 2015.
