GDP value added of construction industry in China 2011-2023

In 2023, the construction industry accounted for about 6.8 percent of China's gross domestic product (GDP), representing a slight increase of 0.1 percent from the previous year.

A vital industry for the economy

Since the 1998 housing reform, China's real estate industry has expanded dramatically and has become one of the country's pillar industries. Similarly, China's infrastructure construction has also boomed since the early 2000s. To mitigate the impact of the 2008 global financial crisis and maintain the country's economic output, the Chinese government launched a four trillion yuan stimulus plan and invested substantial resources in infrastructure development across the country, such as high-speed railway and highway projects. These developments have all made the construction industry one of the most important segments of the Chinese economy.

An important employer nationwide

The construction industry also plays a key role in China's labor market, with more than 50 million people employed in the sector in 2023. It is also one of the top sectors for China's migrant workers, with more than 15 percent working in construction in 2023. However, due to the challenging working environment, more and more young migrant workers are choosing to work in other professions, such as couriers and food delivery. With China's real estate sector facing significant headwinds, infrastructure construction stagnating, and local governments now under substantial fiscal pressure, the future of China's construction industry is becoming increasingly uncertain.