In the Mood for Investment: New Opportunities in China's Infrastructure Projects?

March 31, 2005 | BY

clpstaff &clp articles

Development of China's physical infrastructure has not managed to keep pace with the country's strong economic growth. How have foreign investors' chances faired as China faces its ongoing need to modernize its infrastructure?

By Laetitia Tjoa, Partner and Jean Jingwen Zhou, Associate, Coudert Brothers LLP

China's booming trade and investment climate has created a commensurate need to develop the country's infrastructure. By and large, however, the government has so far been unable to satisfy demand in this area. Aware of the link between adequate infrastructure facilities and resources and continued economic growth, the government has set out ambitious targets. For the period from 2001 to 2005, the government has planned to spend about US$115 billion to build new roads across the country. Railroad extension and upgrading plans call for US$214 billion to be spent between now and 2020, while the cost of constructing new water treatment plants over the next ten years across China is estimated to be US$36 billion.1

But while China's current infrastructure industry obviously could use a helping hand, foreign investors have not rushed to invest.

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