international
construction
january-february 2014
REGIONAL REPORT: CHINA
24
A changing environment
Corruption
Indeed, as China moves ever closer to being the largest
economy in the world, the government is also working hard to
improve perceptions of corruption and quality in the countries
construction industry.
For example, in July 2013 a Beijing court handed a two-year
suspended death sentence to Liu Zhijun, China’s Minister for
Railways from 2003 to 2011, for bribery and abuse of power in
connection with construction of the country’s high-speed rail
network.
The court’s verdict is likely to require Mr Liu, who admitted
to accepting over US$ 140 million in cash bribes, as well as
property and gifts, to spend at least ten years in jail. This case
was clearly intended to send a signal both internally and to the
world that China is cracking down on corrupt practises.
More recently, the president of Chinese state-owned contractor
China Railway Group, Bai Zhongren, died suddenly. The
company, which ranked as the third largest contractor in the
world in the 2013 Global Top 200 with revenues of US$ 74.6
billion, said Mr Bai died in an accident. However, local media
reported the 53 year-old executive’s fall from a building as
suicide.
Mr Bai had not been implicated in any safety or corruption
investigations, but his death added to the sense of pressure and
turmoil that many commentators say has resulted from the rapid
growth of China’s rail sector.
On the manufacturing side, international companies remain
wary of competition from Chinese manufacturers, and not
entirely without reason. Klaus Meissner, director of product
integrity for Terex Cranes, says Terex is tracking reports of
counterfeit CC 2500-1 Terex crawler cranes from China, for
instance.
The company has set up an email address for customers to
inquire about the authenticity of a crane they have purchased or
is considering purchasing.
In 2011 Terex discovered counterfeit cranes being sold well
under market value in China. The company said the Terex CC
2500-1 lattice boom crawler crane is the crane model of choice
for the copycat manufacturers.
“We are aware of three different ‘designs’ of the CC 2500-
1 crane on the market, and there are at least nine or 10 fake
cranes that have been sold, all originating from China,” said
Mr Meissner. “This is a serious situation,
and, not only because this infringes
on our intellectual property but, more
importantly, it poses a serious safety
risk for our customers. The use of these
inferior, counterfeit cranes can result in
deadly consequences.”
Raising standards
Having raised the living standards of
hundreds of millions in the last 30 years,
China is now seeking sustainable growth
through overcoming challenges such
as pollution, intensive energy use and
resource depletion.
There have been and will continue
to be bumps along the way, but this is
a construction market that looks set
to provide solid growth opportunities
for international contractors and
manufacturers alike in the coming
years.
iC
A fleet of four SDLG wheeled loaders,
including the 2.8 m
3
bucket capacity
LG953A1, are handling 2,000 m
3
of
gravel and sand during every 10-hour
day to boost production for Jinsheng
Concrete Co in Lintong – a rural
settlement 35 km to the east of Xi’An.
Liugong president Yu Chuanfen: “All world giants in the
industry are trying their utmost to snatch market share in
China and set up factories or joint ventures in China.”
