What are the opportunities and risks behind Chinas high-speed rail industry chain going abroad?

category:Finance
 What are the opportunities and risks behind Chinas high-speed rail industry chain going abroad?


The first high speed railway going global

Yawan high speed railway is jointly constructed and operated by China and Indonesia, and is expected to be completed in 2021. The relevant person in charge of COSCO Shipping told the first finance and economics reporter that the high-grade rail exported this time is the first order of domestic high-speed rail export, and the follow-up rails of Yawan high-speed rail project will also be transported by special carriers.

The high speed rail project is the China one belt, one road project for Gao Tiequan system, the all factor and the whole production chain. It is also a landmark project of one belt and one road initiative and a national strategic project in Indonesia.

This time, Chinas high-speed rail has gone global from technical standards, survey and design, engineering construction, equipment manufacturing, material supply, operation management and personnel training. Chinas technology, Chinese standards and Chinese equipment are fully adopted in this project. China participates in the planning, construction, operation and management of the whole process overseas.

The picture shows that the girder erecting machine is working at the No.1 Beam Yard of Yawan high speed railway on September 2, 2020

Central enterprises such as China Railway, China railway construction, China Communications Group, China CRRC, China National Communications Corporation, China Iron products and other central enterprises went out to sea and cooperated with each other. Among them, CCCC is responsible for the command brain and nerve center of the equipment project, undertakes the whole line of communication, signal, information (including disaster monitoring) system integration, equipment and material procurement and supply, construction and installation, project site management, technical services and related projects, and participates in the project joint commissioning and test, and provides quality assurance service during the defect notification period.

Chinas China High Speed Rail official told China one belt, one road, is currently accelerating preparations for the procurement of equipment, materials, on-site preparation and interface inspection, so as to ensure smooth progress of the project and to promote the high speed rail standards, technology and equipment to take the out role of the railway in the construction of the one belt and one road construction.

The total length of Yawan high speed railway project is 142 km, with the highest design speed of 350 km / h. It adopts the safe and reliable, advanced technology and mature operation technical standards of China Railway, and is customized according to the local climate, line conditions, cultural traditions and living habits of the people along the line, so as to meet the aesthetic and travel needs of Indonesian people.

After the completion and opening of the Yawan high-speed railway, the time from Jakarta to Bandung will be shortened from more than 3 hours to 40 minutes, which will not only effectively relieve the traffic pressure from Jakarta to Bandung, create convenient, fast and comfortable travel conditions for local people, but also optimize the local investment environment, promote the development of commercial development and tourism industry along the line, and accelerate the formation of high-speed rail economic corridor, which will benefit the vast majority of Indonesia People.

It is worth mentioning that as the largest population country in Southeast Asia and an important member of the G20 group of Southeast Asian countries, Indonesia adopts Chinese standards to build high-speed rail, which will play an important role in deepening cooperation between China and ASEAN countries in the future, as well as the interconnection of infrastructure construction in Indochina Peninsula.

Independent innovation is the foundation of high speed rail export

With its competitive advantages in technology, quality, speed and safety, as well as good riding experience, Chinas high-speed rail is known as the first of Chinas four new inventions and has won a high reputation in the world.

Sun Zhang, a professor at Tongji Universitys railway and urban rail transit Research Institute, told reporters at the first finance and economics department that independent innovation is the foundation of Chinas high-speed rail. Chinas high-speed rail has advanced technology, safety and reliability, good compatibility and high cost performance. It has successfully achieved overtaking on the curve, leading the trend of high-speed rail in the world.

Wang Yiwei, a professor at Renmin University of China, also believes that high-speed rail and other rail transit have brought Chinas competitive advantages, including capital, technology and talent, into full play.

Chinas high-speed rail is attracting the attention of many overseas countries. Indonesia, Malaysia, Russia, Thailand, Australia, the United Kingdom, the United States They have expressed their interest in Chinas high-speed rail. The reason behind this is that Chinas high-speed rail has a complete program that can be applied to different regions.

According to sun Zhang, among the 254 important standards adopted by Fuxing, Chinas standards (including Chinas national standards, industry standards and China National Railway Groups enterprise standards) account for 84%, and 16% of the high-speed railway technical standards are compatible with European standards and Japanese standards.

In addition, Chinas terrain is particularly complex and its climate is changeable, which can provide the world with the most complete high-speed rail scheme. For example, Indonesia likes our Hainan ring road because it is the first high-speed rail in the tropics in the world. Russia likes our Harbin Dalian high-speed railway because it is the first high-speed railway in the coldest area in the world. China has a vast territory and complex terrain and geological conditions. Chinas high-speed railway growing up in this environment can provide a variety of solutions for the development of high-speed railway in the world. Sun Zhang said.

More importantly, the construction cost of Chinas high-speed rail is only 40% of that of foreign countries, Sun said

Zhou Zhiliang, chairman of China Communications Communications Corporation, said in an interview with first finance and economics reporter that the influence of Chinas high-speed rail in overseas markets has attracted worldwide attention, and we must go out. Our self-developed technologies are compatible with European standards, and our core products have been certified by the EU, creating basic conditions for going out. China should respond to one belt, one road initiative and become the main force and promoter of Chinas technology export. In the process of going out, we will also integrate our own technology with the characteristics and needs of various countries to internationalize high-speed rail technology.

High attention should be paid to export risk

Sun Yongfu, an academician of the Chinese Academy of engineering, said that before 2040, the worlds railway construction demand would be about 120000-150000 km, and the construction of high-speed railway would be about 15000-30000 km.

Zhang Yuhuan, an assistant researcher at the Institute of world economy and development of the Chinese Academy of international studies, wrote an analysis that high-speed rail is a relatively luxury infrastructure investment, which has a huge demand for capital, relatively long construction cycle and cost recovery cycle, and extremely complex political and economic security risks. Therefore, we need to face up to the risk challenges and cooperate with the government and enterprises to take joint measures Measures to actively respond.

Sun Zhang told reporters from Chinas first finance and economics that the export of high-speed rail has great risks. China should have a comprehensive understanding of the investment environment, in-depth understanding of the local economic environment, social status, policies and regulations, industry regulations, etc. Actively participate in the formulation of international standards, enhance international competitiveness, but also committed to the construction of Chinese standards. Zhang Yuhuan suggested that Chinas high-speed rail related enterprises should further improve their awareness and level of risk control in the process of going global. First, we should fully investigate the risks faced by the project, fully consider the economic factors such as the world economic development situation, the economic situation of the host country, the governments fiscal revenue and expenditure, and the national development strategy, so as to prevent the risks brought about by the economic deterioration, The second is to formulate management regulations and mechanisms to deal with specific risks, such as strengthening security monitoring, formulating response plans, and strengthening safety drills. Source of this article: Guo Chenqi, editor in charge of first finance and Economics_ NBJ9931

Sun Zhang told reporters from Chinas first finance and economics that the export of high-speed rail has great risks. China should have a comprehensive understanding of the investment environment, in-depth understanding of the local economic environment, social status, policies and regulations, industry regulations, etc. Actively participate in the formulation of international standards, enhance international competitiveness, but also committed to the construction of Chinese standards.