In the first half of this year, China’s construction industry experienced a rare phenomenon: large-scale infrastructure projects dominated by state-owned enterprises (SOEs) frequently went unawarded. Preliminary statistics show that in the first quarter alone, among tender announcements issued jointly by 12 leading companies, over 700 projects received no bids, with nearly half remaining unclaimed even after three consecutive attempts.
On social media platforms like Douyin and WeChat, many contractors and netizens reported that no one “dared to take on” projects from SOEs. The reason is that they force their contractors to put in huge upfront investments but often delay payment for a long time or even do not pay back; and in some cases, the tendering parties suddenly go bankrupt or cease operations.
China’s official media, including the Economic Information Daily under Xinhua News Agency, reported that payment arrears in the construction sector continue to worsen. Even central enterprises are sometimes unable to pay downstream suppliers, creating a chain reaction described as “one upstream company falls, and massive downstream companies are doomed.”
Source: Epoch Times, August 15, 2025
https://www.epochtimes.com/gb/25/8/15/n14574019.htm