To improve European competitiveness and stimulate its economy, the European Union decided last year to assign 230 million euros ($297 million) as start-up capital to finance infrastructure investment in transportation and energy.

China announced a $10 billion credit plan last year for joint investment projects in infrastructure and technology in eastern Europe.

"However, there is still a big gap between the EU and Chinese construction industries, so it's not easy to expand business in developed markets like the EU," said Zhang from the association.

According to the European Union Chamber of Commerce in China, the European Commission is drawing up legislation limiting the participation of non-EU companies in government purchasing projects.

"If the legislation is passed, Chinese companies will lose the opportunity to build large infrastructure projects in areas including railways and water utilities in the EU," said China State Construction Engineering Corp Chairman Yi Jun.

In 2010, government purchasing projects within the EU open to non-EU enterprises were worth 352 billion euros, accounting for 85 percent of the total market.

"Intensified national and regional political risks, local nationalism and trade protectionism are challenges Chinese international contractors are facing this year," the association said.

During its news conference on Thursday, the association also released its 2012 social responsibility report on Chinese international contractors.

Wu Yue, vice-president of China National Machinery Import and Export Corp, said: "While improving business efficiency abroad, we also attach great importance to the promotion of social benefits in overseas markets through great efforts on environmental protection, providing job opportunities and offering training to local workers."

baochang@chinadaily.com.cn

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