Mobile QR Code QR CODE : Korea Journal of Construction Engineering and Management
Title A Study on Regulations and Strategies for Increasing the Chinese Construction Market Share post the FTA between Korea and China
Authors Kim, Myeong-soo
DOI http://dx.doi.org/10.6106/KJCEM.2018.19.5.010
Page pp.10-21
ISSN 2005-6095
Keywords Construction Market in China ; Foreign Direct Investment ; Mutual Corporation Model ; Government Procurement Agreement
Abstract This study analyzes difficulties of enterprise activities in Chinese construction market by surveys on early entrants and interviews with experts. This study also suggests future strategy to enter the market by using inducement coefficient model. Korean construction companies in China are under heavy pressure to maintain requirement of licenses, despite recent deregulation. They are in dire predicament for market entry due to the Foreign Direct Investment System. It is almost impossible to participate in public projects and also it is not easy to do PPP projects. Therefore, Korean government should make more efforts to solve those issues through negotiations in FTA and GPA. For future expansion in Chinese construction market, it is highly recommended to boost cooperation models between Korea and China according to the empirical results of inducement coefficient model. Korean companies should collaborate with Chinese companies in some fields: smart city, environment and water treatment. Also, Korean government should support Korean companies by diplomatic means such as requesting for further opening of China's market. In GPA or GATS negotiation, Korean government should ask Chinese government that Korean companies can obtain order independently (without joint venture with Chinese companies) in China. Lastly, Korean construction companies should participate in construction projects ordered by international organizations such as ADB, AIIB.