Country Overview
China has seen strong improvement across its procurement and permit processes and regulatory markets since 2017. This has been driven by reductions in cost to start a business, time to register property and the transparency of its procurement processes. China’s infrastructure investment remains high at 6.7% of GDP, but its private infrastructure investment remains low as a percent of GDP. To improve this, China could introduce a requirement to sound out the market before formal procurement processes to help design better market engagements. The long-term impact of the COVID-19 pandemic on quality infrastructure investment remains uncertain.
See Full Overview Data
GDP per capita
10,099 USD
Population
1,400 million persons
Infrastructure quality
77.9 (0-100 best)
Infrastructure investment
6.1% of GDP
Private infrastructure investment
908.3 5-year average, USD millions
Infrastructure gap
0.4% of GDP

Driver Overview

This section shows a country’s rank, ranking change and score for each of the eight drivers. It also categorises each country’s driver performance on a scale from “Emerging” (score from 0-20) to “Global Leader” (score from 80-100).

Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Rank

Score /100

Best practice

32
4
57.5
Top performer
29
12
63.1
Top performer
14
22
85.3
Global Leader
37
3
74.3
Contender
22
30
84.2
Top performer
60
3
21.4
Aspiring
26
2
50.5
Top performer
7
-
73.2
Global Leader

Metric Overview

Strengths

Cost to start a business

According to the World Bank, the cost of starting a business is 1.1% of income per capita. This is lower than the average of Upper Middle Income Countries of 11%. China has recently implemented reforms to improve business processes, easing the entry of new firms.

Registering property

According to the World Bank, it takes nine days to register a property in China, significantly lower than the Upper Middle Income Countries’ average of 20 days. As infrastructure projects often involve property rights, the shorter the time to register properties, the less costly and risky the project.

Stocks traded

China has one of the highest values of stocks traded as a share of GDP out of all InfraCompass 2020 countries, at 96%. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.

Cost to start a business

According to the World Bank, the cost of starting a business is 1.1% of income per capita. This is lower than the average of Upper Middle Income Countries of 11%. China has recently implemented reforms to improve business processes, easing the entry of new firms.

Registering property

According to the World Bank, it takes nine days to register a property in China, significantly lower than the Upper Middle Income Countries’ average of 20 days. As infrastructure projects often involve property rights, the shorter the time to register properties, the less costly and risky the project.

Stocks traded

China has one of the highest values of stocks traded as a share of GDP out of all InfraCompass 2020 countries, at 96%. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.

Top Performing Metrics

Top Performing Metrics

This is defined by the metrics with the highest unweighted score out of 100. 

Upper middle income country average

Financial markets:
Stocks traded

Opportunities to Grow

Market sounding and/or assessment

China currently lacks a market sounding process for infrastructure projects. Adding such a process could allow the government to better determine if there is enough interest from investors and lenders to provide commercial financing for projects.

Private infrastructure investment

Despite its low score, China is seeking to increase private investment to boost growth without adding public debt. China could consider new approaches for accelerating the flow of private capital into infrastructure. However, the COVID-19 pandemic may impact this.

Value of close infrastructure deals with foreign equity sponsorship

Among the Upper Middle Income Countries, China has a score significantly lower than the average of 32. A low value may reflect uncertainty around trade conditions and barriers within the business environment. Additionally, any long-term impacts of the COVID-19 pandemic are yet to be fully determined.

Market sounding and/or assessment

China currently lacks a market sounding process for infrastructure projects. Adding such a process could allow the government to better determine if there is enough interest from investors and lenders to provide commercial financing for projects.

Private infrastructure investment

Despite its low score, China is seeking to increase private investment to boost growth without adding public debt. China could consider new approaches for accelerating the flow of private capital into infrastructure. However, the COVID-19 pandemic may impact this.

Value of close infrastructure deals with foreign equity sponsorship

Among the Upper Middle Income Countries, China has a score significantly lower than the average of 32. A low value may reflect uncertainty around trade conditions and barriers within the business environment. Additionally, any long-term impacts of the COVID-19 pandemic are yet to be fully determined.

Metrics to Improve

Metrics to Improve

This is defined by the metrics with the lowest weighted score out of 100, such that these metrics would have the greatest impact on the overall score.

For metrics that have binary outcomes (yes=100/no=0), no comparative income group average is reported.

Upper middle income country average

Detailed Data

This section shows country data for each of the 41 metrics. Note that all data has been normalised on a scale of 1-100. For raw metric data, please download the complete InfraCompass 2020 dataset. 

Where relevant, some metric scores have been inverted, such that all metrics have positive relationships with good infrastructure outcomes. For example, since lower compliance costs make it easier to invest in infrastructure, the normalised value of ‘number of procedures to start a business’ has been reversed such that lower number of procedures are scored closer to 100, and higher numbers closer to 0. In other words, a score of 0 indicates a poor performance, rather than 0 number of procedures.

Governance Regulatory Permits Planning Procurement Activity Funding Financial
Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Metric

China

Upper middle Income Countries Average

Source Link

28.2%

Recovery rate

The recovery rate is recorded as cents on the dollar recovered by secured creditors through reorganisation, liquidation or debt enforcement (foreclosure or receivership) proceedings.

36.9
37.7

20.7%

Rule of law

World Governance Composite Indicator reflecting perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The rule of law reflects whether the law imposes limits of power on the state, private sector and individuals.

46.0 (+2.7)
45.1

18.1%

Post-completion reviews

Whether the country conducts post-completion reviews on infrastructure projects to ensure the forecast outcomes are being achieved.

Yes
-

15.1%

Shareholder governance

Measures the governance practices that protect shareholders through three dimensions: the extent of shareholder rights index (shareholders’ rights and role in major corporate decisions), the extent of ownership and control index (governance safeguards protecting shareholders from undue board control and entrenchment), and the extent of corporate transparency index (corporate transparency on ownership stakes).

56.7 (+13.3)
40.2

12.8%

Political stability and absence of violence score

Measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. Estimate gives the country's score on the aggregate indicator, in units of a standard normal distribution i.e. ranging from approximately -2.5 to 2.5.

45.6 (+4.0)
46.1

5%

Infrastructure or PPP agency

Whether an infrastructure agency exists to coordinate an integrated approach to infrastructure delivery and policy.

Yes
-

China

Upper middle Income Countries Average

36.9
37.7
46.0 (+2.7)
45.1
Yes
-
56.7 (+13.3)
40.2
45.6 (+4.0)
46.1
Yes
-

Country Overview Data

China has seen strong improvement across its procurement and permit processes and regulatory markets since 2017. This has been driven by reductions in cost to start a business, time to register property and the transparency of its procurement processes. China’s infrastructure investment remains high at 6.7% of GDP, but its private infrastructure investment remains low as a percent of GDP. To improve this, China could introduce a requirement to sound out the market before formal procurement processes to help design better market engagements. The long-term impact of the COVID-19 pandemic on quality infrastructure investment remains uncertain.
GDP per capita

10,099 USD

Population

1,400 million persons

Infrastructure quality

77.9 (0-100 best)

Infrastructure investment

6.1% of GDP

Private infrastructure investment

908.3 5-year average, USD millions

Infrastructure gap

0.4% of GDP

GDP

14,140 USD billion

GDP growth rate

6.1%

GDP per capita growth rate

5.4%

Gini coefficient

38.6 (0-100 worst)

Gross Government Debt

56.0% of GDP

Inflation rate

2.3%

Summary credit rating

80.0 (0-100 best)

Unemployment rate

4.4%

Urbanisation ratio

59.0% of total population

Road connectivity

95.7 (0-100 best)

Quality of road infrastructure

4.6 (1-7 best)

Efficiency of train services

4.5 (1-7 best)

Efficiency of air transport services

4.6 (1-7 best)

Efficiency of seaport services

4.5 (1-7 best)

Electricity access

100.0% of population

Electricity supply quality

4.9% of output lost

Exposure to unsafe drinking water

18.0% of population

Reliability of water supply

4.9 (1-7 best)

Digital Adoption Index

0.6 (0-1 best)

Mobile-broadband subscriptions

95.4 per 100 population

Fixed-broadband Internet subscriptions

28.5 per 100 population