China builds a high-speed rail dynasty, desperate to build a railway

Abstract On November 6, foreign media news reports that a series of news of building new high-speed rails at home and abroad may indicate that policy makers are worried. Falling indicators of electricity, freight, steel and wholesale prices all require the implementation of state-led fiscal stimulus measures. Building a railway is very popular...
On November 6, foreign media news reported that a series of news of building new high-speed rails at home and abroad may indicate that policy makers are worried. Falling indicators of electricity, freight, steel and wholesale prices all require the implementation of state-led fiscal stimulus measures. The construction of the railway is a popular and commendable means of revitalizing the industry. Especially since 2008, the high-speed rail project has become the preferred stimulus in Beijing and has become a tool for geopolitics.

Is this a smart or expedient means of sustaining growth? The US "National Interests" bimonthly website said on November 4th that they are all. Whether it is an international comparison around GDP, land area or population, China does “need” more railways, and its urbanization projects require large-scale and rapid population movements. But urban planners question the value of high-speed rail. High-speed rail is good for big cities, but commuting may create a large “sleeping city” on the outskirts of the city.

The report said that the economic return is still uncertain. Only a few high-speed rail lines are profitable. The China Railway Corporation’s debt is riddled with its European companions. In Japan, only the Tokaido Shinkansen is profitable. Taiwan's high-speed rail is also on the verge of bankruptcy. The United Kingdom and the United States of California are being guilty of the feasibility of high-speed rail (China is interested in both projects).

However, the report believes that social returns may differ from economic returns, and Beijing expects high-speed rail to promote urbanization in the economy. Therefore, China is vigorously implementing a daunting plan to connect major cities by 2020. In the end, the length of China's high-speed rail may reach about 40,000 kilometers, more than half of the total length of the world's high-speed rail.

According to the report, China’s international ambitions in railways are even more interesting. From Mexico, Serbia to Zimbabwe, China's railway companies are very active. However, the real treasure is the huge high-speed rail network that has spread from China to the periphery of Eurasia: Moscow, Istanbul, Singapore and Alaska.

The report said that the recent memorandum signed with Russia is surprising. The future Beijing-Moscow railway is 7,000 kilometers long and may eventually cost $250 billion. Analysts predict that hundreds of trains will be running at the same time. This shows that the links between the two superpowers are significantly strengthened.

The report believes that these projects have indeed expanded their influence and demonstrated their technical strength. Today, 50 years later, China wants to become synonymous with high-speed rail after Japan, "just like a watch in Switzerland." Even China's soft power institutions talk about the "high-speed rail spirit." The new Silk Road network will reduce China’s risk on the oceans while strengthening its links with its neighbors. These neighboring countries are willing partners. This is a "win-win", but China may win the most.

According to the report, China will desperately build railways, whether through new multilateral institutions (China's leading Asian infrastructure investment banks clearly focus on the high-speed rail project of the Silk Road) or bilateral behavior. China is rich in resources. There are no Boeing or Toyota cars to sell in the country, but it has high-speed rail and will build a railroad anywhere from the waist. Beijing may merge two national organic car manufacturing companies into one highly competitive export company.

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