China looks to slow growth of money-losing high-speed rail

With the exception of the busiest lines between the biggest cities, China's high-speed rail network loses money.
With the exception of the busiest lines between the biggest cities, China's high-speed rail network loses money.PHOTO: ST FILE

BEIJING (CAIXIN GLOBAL) - China is introducing guidelines to limit new high-speed rail construction along underused routes, as it seeks to prevent projects that give short-term boosts to local economies, but add to regional governments' already huge debt piles.

If a high-speed rail route is operating at less than 80 per cent of its designed capacity, then a second line should not be built covering the same route, according to guidelines jointly released by the country's top economic planner and the transport authority on Monday (April 5).

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