China has established the world's most extensive high-speed railway network in just two decades. Since the first line launched in 2008, the network has grown to roughly 25,000 miles, more than double the combined length of the rest of the world's high-speed railways and long enough to circle the Earth. A passenger train is considered high-speed if it travels at least 124 mph on upgraded tracks or 155 mph on new tracks. More than 20 countries currently have high-speed rail networks, mainly European and East Asian states but also Saudi Arabia, Turkey, and Uzbekistan.
The planning for this ambitious project began in the 1990s when China was undergoing rapid economic growth. The country faced significant infrastructure challenges, which led to the initiation of the "speed up" campaign in the late 1990s aimed at increasing the speed of commercial trains. This strategic move was pivotal in laying the groundwork for the high-speed rail system that would ultimately transform travel in the nation.
In 2008, the first high-speed rail line was launched, connecting Beijing and Tianjin, a distance of just 75 miles. The global financial crisis that same year prompted China to ramp up investments in infrastructure, including high-speed rail, to stimulate the economy and create jobs. This boost in funding allowed China to not only build its network but also enhance its technological capabilities, establishing itself as a leader in high-speed rail technology.
Initially, China relied on technology transfer agreements with foreign companies such as Alstom, Siemens, and Kawasaki Heavy Industries. Over time, however, the nation developed significant domestic expertise and innovation, allowing it to create a self-sustaining high-speed rail industry. The result has been a dense and connected network that links major cities, reduces travel times, and boosts connectivity between regions.
As of the end of 2021, the high-speed rail network covered 93 percent of cities with populations over half a million. China’s government continues to set ambitious goals, with plans to extend the high-speed rail network to 31,000 miles by 2025 and to 43,495 miles by 2035. This remarkable transformation in transportation infrastructure illustrates China's ability to mobilize vast resources quickly for major projects, a characteristic that many observers cite as an "institutional advantage" of the country.
Despite the impressive achievements, the high-speed rail network has faced challenges in generating sufficient revenue to cover its substantial initial investments and ongoing maintenance costs. By the end of 2021, the China State Railway Group, the state-owned operator, reported liabilities of around $900 billion, prompting an increase in ticket prices—a rare move in the country. This situation highlights the ongoing balancing act between ambitious infrastructure development and sustainable financial management.
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