Construction industry is a significant contributor to the Chinese economy. The industry has more than 12 million employers with over 250 million employees and creates almost $1.9 trillion worth of structures yearly. Civil construction remains the main driver of growth in China. Basically, a task is developed to meet market demands or demands in a timely fashion. Different possibilities may be thought about in the conceptual drawing board, and also the technical and also financial feasibility of each alternative will be assessed and compared in order to select the very best feasible job. The construction industry in China is forecast to grow by 7.7% in 2021, driven by strong Y-o-Y growth in the first quarter, reflecting the comparison to the previous year's period when construction work was halted across most of the country. Thereafter, the construction industry is expected to record an average annual growth of 4.2% between 2022 and 2025. The industry's growth over the forecast period is expected to be driven by investments on new infrastructure, including investment in the areas of 5G networks, Artificial Intelligence, the Internet of Things, and data centers. According to the government-backed think tank, the China Electronic Information Industry Development, the country is expected to spend CNY10 trillion (US$1.4 trillion) on new infrastructure projects between 2020 and 2025. This study evaluated factors affecting construction sector performance: explanatory factor analysis evidence from China. From the literature reviewed, it was established that entering the Chinese construction market is still seen as exciting but difficult by many foreign contractors and consultants. The study found out that rising material and labor costs, labor woes, increased competition and shrinking profit margins were some of the challenges construction firms in Chin face. The study concludes that the implementation of construction safety laws and the rate of subcontracting are relevant factors affecting construction sector in China, while neither the extent of using temporary workers, nor the availability of resources, nor the level of per capita GDP has any effects. Keywords. Construction sector, safety performance, construction sector, labor costs, increased competition, shrinking profit margins