China’s real estate investment decreased 10.7 percent from January to May 2025 year-on-year due to a multi-year housing market slump and weak local government demand. Nevertheless, China remains the world’s largest construction market, valued at approximately USD 4.82 trillion in 2025. It is shifting toward green, low-carbon building and urban renewal projects. As urbanization slows and the property market stabilizes, opportunities for design and construction firms are evolving. With an urbanization rate of 67 percent in 2024, demand is more stable in Tier 1 cities like Beijing and Shanghai, driving a focus on sustainable construction and alignment with China’s dual carbon goals—reaching peak carbon emissions by 2030 and carbon neutrality by 2060.
Opportunities
China’s push for greener buildings and energy efficiency presents opportunities for U.S. firms specializing in sustainability, energy efficiency, and smart building technologies. The construction sector, responsible for over 50 percent of China’s CO2 emissions, is central to achieving these goals.
Key Regulatory Developments:
Energy Efficiency Standards: The Ministry of Housing and Urban-Rural Development’s 2021 guidelines mandate stringent energy-saving standards for new buildings. For example, residential buildings in colder northern regions must be 75 percent more energy-efficient than those built to 1980s standards.
Energy-Saving Renovations: The 14th Five-Year Plan targets 350 million square meters of energy-saving renovations and 50 million square meters of ultra-low and near-zero energy buildings.
Green Building Certifications: The Green Building Label (GBL), along with international standards like LEED and WELL, are gaining momentum. As of 2023, China had 1,682 LEED-certified projects covering over 290 million square feet.
Leading Sub-sectors
Green Building Materials: Demand is growing for advanced insulation, carbon-capturing concrete, sustainable composites, and other materials that improve building energy efficiency and support China’s ambitious carbon reduction targets.
Smart Building Technologies: China’s urban development initiatives are driving interest in AI-driven energy management systems, smart HVAC networks, solar panel integration, and microgrid solutions that optimize building performance and resilience.
Architectural & Consulting Services: Firms offering expertise in LEED and WELL certification, energy retrofits, net-zero community design, and low-carbon urban planning are increasingly sought after as China focuses on building greener, more sustainable cities.
Energy-Efficient HVAC: Heat pumps, geothermal technologies, and energy recovery ventilation systems are in high demand as China tightens energy efficiency standards for commercial and residential developments.
Sustainable Construction & Prefabrication: There is rising market potential for prefabricated high-performance building systems and 3D printing technologies that use recycled materials, helping China reduce construction waste and lower lifecycle emissions.
Guidance for U.S. Firms in China
- Licensing Requirements: U.S. architectural firms generally need to partner with local firms to obtain a full architectural license. Foreign firms are not required to hold a local license but must collaborate with a domestic partner.
- Local Market Competitiveness: Chinese competitors often have superior market knowledge and offer competitive pricing. Strategic partnerships with local firms can help U.S. companies leverage their international expertise and navigate the market effectively.
Resources
- China Refrigeration Expo – Shanghai, April 27-29, 2025
- China Hospital Construction Conference – Wuhan, May 17-19, 2025
- Guangzhou International Lighting Exhibition – Guangzhou, June 9-12, 2025