China's high speed rail runs out of money

[Korean]

High-speed train system derailed by corruption, economy

High-speed train system derailed by corruption, economy

BY MALCOLM MOORE, DAILY TELEGRAPH FEBRUARY 22, 2012

China's high-speed rail project, one of the world's most impressive feats of engineering, has run out of money and will be scaled back significantly this year.

More than two-thirds of 23 railway projects have been suspended, partly suspended, or delayed, according to the Chinese state media. A source told the Dow Jones news agency that only nine new lines would be commissioned this year, compared with 70 in 2011.

...

And after the crash, the ministry found it increasingly expensive to borrow money, and no longer had access to stimulus loans handed out after the financial crisis to keep the Chinese economy going.

 

[lynx]

Well few railways in the world make money.

 

[kingkobra]

we should learn from china's success and also china's mistakes..

 

[Korean]

Well few railways in the world make money.

The point is that the Chinese government's finances aren't as good as what the Chinese government claim it to be, that the Chinese government is piled up with debt and doesn't have unlimited amount of money to blow on HSR, highways, civil construction projects, carrier battle groups, etc.

Local and regional governments are practically bankrupt and are being bailed out by the central government right now.

 

[God of Death]

Not only they run out of money they also have to slow down the speed due to the regular incidents because of poor quality.

 

[God of Death]

According to Govt. of china's official news agency

China slows down high-speed trains by 50 km/h

BEIJING, (Xinhuanet) – China's high-speed trains are cutting back trips, slowing down and slashing prices at the order of the State Council. The cutbacks, which start on Tuesday, focus on the Beijing-Shanghai Railway, and coastal railway lines of Ningbo-Taizhou-Wenzhou, Wenzhou-Fuzhou, and Wenzhou-Xiamen in Zhejiang Province. The decision was made after last month's deadly train crash near Wenzhou.

Not as fast as before, but much safer.

China's speedy trains slow down on Tuesday as a new operation system takes effect.

China slows down high-speed trains by 50 km/h

 

[MUHARIB]

Too bad, hope they resume it soon.

 

[HongWu]

LOL at Korean. China already has the longest high speed rail network in the world. We are simply scaling back our investment in proposed lines, because we do not need to be too far ahead of the rest of the world.

 

[StingRoy]

We are simply scaling back our investment in proposed lines, because we do not need to be too far ahead of the rest of the world.

Thats not what the article says. Please read the article before posting. It points to large scale corruption and rising debt as the core issues.

 

[Deepak123]

Crash threatens China’s high-speed ambitions - FT.com

The following article saying China Railway has debt of Rmb1,980bn ($307bn)


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307 billion dollar is quite a huge amount.

 

[lynx]

LOL at Korean. China already has the longest high speed rail network in the world. We are simply scaling back our investment in proposed lines, because we do not need to be too far ahead of the rest of the world.

How kind of you? but the ground reality is something else.

 

[Götterdämmerung]

Not only they run out of money they also have to slow down the speed due to the regular incidents because of poor quality.

One accident become regular incidents in your view, how would you call the daily train desasters in India despite running at bullock cart speed?

Truly delusional, you Indians.

 

[MUHARIB]

One accident become regular incidents in your view, how would you call the daily train desasters in India despite running at bullock cart speed?

Truly delusional, you Indians.

And you say we are delusional??

 

[Splurgenxs]

The point is that the Chinese government's finances aren't as good as what the Chinese government claim it to be, that the Chinese government is piled up with debt and doesn't have unlimited amount of money to blow on HSR, highways, civil construction projects, carrier battle groups, etc.

Local and regional governments are practically bankrupt and are being bailed out by the central government right now.

people know this ...and china knows this too. but time will tell if it truly turn for the worse..
countries can run on manageable debt ...but the fact remains with the amount of Liquidity injections and stimulus spending ...no one knows how large there bubble has shroomed. Maybe even more than there GDP as they may have factored in ther e forex reserves in there investments.

 

[lepziboy]

I thought China has surplus in trade?They have their reserve which Chinese members brag about let them use those.