According to a forecast of global construction growth by consultant Davis Langdon & Seah International in London, construction spending in China grew 8.7 percent in 2004 and is forecast to grow 9 percent annually thorugh the Beijing Olympics year of 2008. In fact, construction accounts for 20 percent of the country's GDP.
      Asked if the level of building activity is pushing the limits of available building materials, Leen-How, head of the Shanghai office for architectural firm Smallwood, Reynolds, Stewart, Stewart & Associates International, Inc., says, "Yes."
      "It is more evident in the case of steel," he explains. "For high-rises, a steel structure would be faster way to construct. However, it is about 20 percent more expensive than the conventional reinforced concrete structural system."
      He says development of middle- and upper-income housing is "very bullish" and says the demand for urban renewal to meet the needs of 260 million urban Chinese will drive architectural and other services for many years to come. As for corporate activity, he says, "It is hard to say who is not here yet. In addition, the Chinese companies are also coming into Shanghai."
      Asked about the country's intellectual property environment, John Patelski, president of Chicago-based AEC and interior design firm A. Epstein & Sons International, Inc., says, "The notion of intellectual property and the overall concept of protecting ideas are slowly developing as the need for such protection grows. Epstein has experienced a very flexible approach when dealing with most Chinese business leaders and government bodies. While this allows for 'face-saving' follow-up as the details of a project may change, it can be frustrating to western businesses accustomed to dealing with hard-and-fast rules, regulations and contracts designed to spell out every facet and detail of a project."
      Patelski says Shanghai appears to be one of the first Chinese cities to outline specific IP protection policies, which "increases the comfort level of many of the western business undertaking development in that region."
      As for the country's infrastructure deficit, Patelski says it "is still very real in a number of China's regions although that is slowly changing for the better. Naturally, major metropolitan areas such as Beijing, Shenzhen, Shanghai etc. have the roadways, bridges, energy grid etc. to support a high level of development. But even these urban areas can experience difficulties with existing systems, as illustrated by electrical blackout periods that sometimes exist to avoid overloading the energy systems."
      Patelski says another "very real, ongoing challenge is locating and securing talent to develop and support new facilities," in part because of the competition for that talent spurred by rapid corporate growth. "While a very large labor pool exists throughout China, well-educated and highly trained individuals are still a very sought-after and necessary resource."