China Construction Law: Structural Revisions and Aesthetic Adjustments

By David Cox, Chief Representative, Minter Ellison Shanghai Office

The last few months have seen a flurry of activity from the Ministry of Construction (MOC) in relation to the rationalization and modernization of China's construction sector and the role of foreign contractors in China. In particular, the MOC has recently issued three significant documents:

• a new draft Construction Law was issued on August 27 2004 (the Draft Law);
• the Issues Relevant to the Proper Management of the Qualifications of Foreign-Invested Construction Enterprises Circular was issued jointly with the Ministry of Commerce on September 6 2004 and took immediate effect (the FICE Circular); and
• the Construction Project Management Trial Procedures, which were issued on November 16 and took effect on December 1 2004 (the Project Management Procedures).

Given that China's growing economy and the country's WTO commitments have led to new opportunities and challenges in the construction sector, it is important to keep up with the changes. Here we will review some of the key features of these documents and highlight some of the changes that will affect foreign contractors operating in China.

THE NEW DRAFT CONSTRUCTION LAW