China is still considered as a leader in the global market of new construction. The government of China has set an objectives of a minimum of 40 per cent to 45 per cent in the intensity of carbon across the nation by the year 2020, in comparison with the baseline of 2005 (Houser 2008). This has been identified as a target within which a significant role is played by the building. In order to support this goal, a number of policies have been creating a growing and vibrant market for products of green building. There will be a maturity across the market as there will be an initiation of growth, similarly with a smaller share of producers delivering high quality (Hu 2012). For advancing in development of energy efficiency, the National Development and Reform Commission and MOHURD issued an Action Plan of Green Building in the year 2013 and targets have been set for establishing efficiency of energy in the closer proximity, with different set of policies for existing and new buildings. As mentioned by MOHURD (2013; 17):
“For new buildings, the Plan requires strict implementation of urban building energy codes and sets a goal of developing one billion m2 of green buildings which are rated one to three stars. For existing buildings, the Plan requires continuation of an existing program to retrofit residential buildings in the north and sets a goal of renovating 400 million m2 of floor space by 2015; it also requires the retrofit of 50 million m2 of residential buildings in the Hot Summer Cold Winter region, the renovation of 120 million m2 of public buildings, and deep retrofit of 400,000 rural houses by 2015” (MOHURD 2013; 17).
The conditions of the industry have been hindering foreign investment that further leads towards disparities across overseas and local organization. This has been specifically identified as the case for requirements of registered capital. The companies of foreign investment hold the requirement of registering at least 50 per cent of total investment in capital. As a contrasting view, local companies of investment are required for registering at least 30 per cent of the total investment in capital (Kurdgelashvili 2013). Hence, while there is a permission or encouragement of investment under the Catalogue Guiding Foreign Investment Sectors, there is a need for awareness among foreign investors regarding the potential regulatory barriers and necessary approvals as in link with the interests of investment.