Development Strategies for Chinese Design Institutes

Abstract

China is gradually opening up its engineering construction services sector to overseas contractors and consultants as part of its move towards joining the World Trade Organization (WTO). Traditionally, design institutes have operated as state-owned enterprises (SOEs), and for them, China’s accession to the WTO in 2001 presents both a threat as well as an opportunity. Given the market conditions in China, most of the design institutes are restructuring their organizations to cope with the increasing competition. Through a pilot investigation, the strengths, weaknesses, opportunities, and threats of the Chinese design institutes are identified. Based on the analysis, this paper proposes development strategies for the sustainable growth of Chinese design institutes and suggests approaches for collaboration with foreign contractors and consultants. A case study is presented to demonstrate the practical application of these strategies.