Page 224 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
21st Century Silk Road, and, two weeks into 2017, the first high for the whole year, as construction in the second half
train from China rolled into London, extending the route year will rise as new projects get underway,” said Wang
as far as it can go. Mengshu of the China Academy of Engineering (Xinhua,
Chinese Rail). Construction began on 2,100 km of new
Since the launch of the China-Europe Railway Express rail line, 2,500 km of double-track lines and 4,000 km of
(CR Express) linking China with Europe by fast-track electrified railways in 2017. To achieve the targets, China
cargo rail, freight volume has increased substantially, Railway Corp. (CRC) has been assigned a budget of 800
particularly in 2016.The CR Express is of increasing interest billion yuan by the central government, the same as in
to companies wanting to transport Chinese products to 2016 (China to Start). Scheduled progress has been made
Europe while tapping markets along the Belt and Road in 27 major projects, including the Beijing-Shenyang
routes, including manufacturers in western China and passenger line and Hangzhou-Huangshan high-speed
companies in the coastal region looking for an alternative line, “Completing an investment of 800 billion yuan is out
to sea freight. Some companies even take advantage of question,” said Wang, given that the third and fourth
of these freight trains’ speed and customs clearance quarters usually see the approval of a larger number
facilitation to bring imports into the booming domestic of projects (Xinhua, Chinese Rail). The Vice Minister of
market. China’s Europe-bound freight-train service (now Transport, Yang Yudong said China will spend 3.5 trillion
formally named the CR Express) was launched in March yuan on railway construction during the 13th Five
2011, with the first train setting off from Chongqing to Year Plan period (2016-2020). By 2020, China will have
Duisburg, Germany. As of August 2016, more than 2,100 increased the length of high-speed railways in operation
trains had been dispatched via the Yuxinou (Chongqing- to 30,000 kilometers, connecting more than 80 percent
Xinjiang-Europe) International Railway. Currently, the CR of its big cities. By the end of 2016, China had a 124,000
Express provides regular rail services to at least 16 Chinese km railway network, featuring the world’s largest high-
cities, including Chongqing, Chengdu, Zhengzhou, speed rail network of more than 22,000 km. While the
Wuhan and Suzhou, arriving at more than 12 cities in vast network has enhanced connectivity in large swathes
eight European countries. CR Express services have grown of the country, construction lags behind in the less
rapidly in 2016, with increasing numbers of mainland developed western regions. The government wants to
companies relying on rail to transport goods to Europe. address this gap. Much of this year’s construction projects
The CR Express provides not only direct railway transport will happen in China’s central and western regions, to
to Europe from China, but also a one-stop service in cargo support the wider poverty-relief campaign, according to
inspection, quarantine and customs clearance thanks to CRC (China to Start).
the support of relevant government authorities. Notably,
the technical specifications of the railway system and In 2016 the network carried a record 2.7 billion
rail tracks are different between China, countries in passengers, an increase of 11.2 percent year-on-
Central Asia and Europe. Trains need to change from year, with 1.44 billion of these trips on its high-speed
one rail track system to the others when crossing the network, which now exceeds 20,000km. Internet tickets
China-Russia border, entering Central Asia, and arriving accounted for 60 percent of total sales, with mobile
in Eastern Europe and Western Europe. However, such phone tickets accounting for 40 percent of the total.
technical issues have been resolved thanks to the Chinese rail freight volumes amounted to 2.65 billion
concerted efforts of the railway and shipping companies tons, with intermodal, automotive goods, and bulk
concerned. Today, most logistics operators are capable freight reporting substantial increases. There was also
of monitoring the cargo during the whole process and particular growth in trains travelling to and from Europe,
provide the consignor with clearance on arrival at the with 1,702 trains travelling from China, an increase of
railway terminus, warehousing and transshipment to the 109 percent, and 572 making the return journey, an
desired destination (HKTC). increase of 116 percent. In 2017, passenger traffic is
expected to increase to 3.025 billion passengers, and
China won’t stop laying down more tracks even if they rail freight volumes to 2.75 billion tons (Smith).
have gone as far as they can go to London. China’s railway
investment rose in the first half year and the investment Shipping by rail between Europe and Asia got a little
is set to hit a new high in 2017. In the first half year, fixed more flexible in 2017 when UPS added six new stations
asset investment on railways hit 312.5 billion yuan, up 1.9 to its continent-spanning rail service – four in China and
percent year-on-year.“Investment is expected to hit a new two in Europe. The rail line, running from Germany and
224
21st Century Silk Road, and, two weeks into 2017, the first high for the whole year, as construction in the second half
train from China rolled into London, extending the route year will rise as new projects get underway,” said Wang
as far as it can go. Mengshu of the China Academy of Engineering (Xinhua,
Chinese Rail). Construction began on 2,100 km of new
Since the launch of the China-Europe Railway Express rail line, 2,500 km of double-track lines and 4,000 km of
(CR Express) linking China with Europe by fast-track electrified railways in 2017. To achieve the targets, China
cargo rail, freight volume has increased substantially, Railway Corp. (CRC) has been assigned a budget of 800
particularly in 2016.The CR Express is of increasing interest billion yuan by the central government, the same as in
to companies wanting to transport Chinese products to 2016 (China to Start). Scheduled progress has been made
Europe while tapping markets along the Belt and Road in 27 major projects, including the Beijing-Shenyang
routes, including manufacturers in western China and passenger line and Hangzhou-Huangshan high-speed
companies in the coastal region looking for an alternative line, “Completing an investment of 800 billion yuan is out
to sea freight. Some companies even take advantage of question,” said Wang, given that the third and fourth
of these freight trains’ speed and customs clearance quarters usually see the approval of a larger number
facilitation to bring imports into the booming domestic of projects (Xinhua, Chinese Rail). The Vice Minister of
market. China’s Europe-bound freight-train service (now Transport, Yang Yudong said China will spend 3.5 trillion
formally named the CR Express) was launched in March yuan on railway construction during the 13th Five
2011, with the first train setting off from Chongqing to Year Plan period (2016-2020). By 2020, China will have
Duisburg, Germany. As of August 2016, more than 2,100 increased the length of high-speed railways in operation
trains had been dispatched via the Yuxinou (Chongqing- to 30,000 kilometers, connecting more than 80 percent
Xinjiang-Europe) International Railway. Currently, the CR of its big cities. By the end of 2016, China had a 124,000
Express provides regular rail services to at least 16 Chinese km railway network, featuring the world’s largest high-
cities, including Chongqing, Chengdu, Zhengzhou, speed rail network of more than 22,000 km. While the
Wuhan and Suzhou, arriving at more than 12 cities in vast network has enhanced connectivity in large swathes
eight European countries. CR Express services have grown of the country, construction lags behind in the less
rapidly in 2016, with increasing numbers of mainland developed western regions. The government wants to
companies relying on rail to transport goods to Europe. address this gap. Much of this year’s construction projects
The CR Express provides not only direct railway transport will happen in China’s central and western regions, to
to Europe from China, but also a one-stop service in cargo support the wider poverty-relief campaign, according to
inspection, quarantine and customs clearance thanks to CRC (China to Start).
the support of relevant government authorities. Notably,
the technical specifications of the railway system and In 2016 the network carried a record 2.7 billion
rail tracks are different between China, countries in passengers, an increase of 11.2 percent year-on-
Central Asia and Europe. Trains need to change from year, with 1.44 billion of these trips on its high-speed
one rail track system to the others when crossing the network, which now exceeds 20,000km. Internet tickets
China-Russia border, entering Central Asia, and arriving accounted for 60 percent of total sales, with mobile
in Eastern Europe and Western Europe. However, such phone tickets accounting for 40 percent of the total.
technical issues have been resolved thanks to the Chinese rail freight volumes amounted to 2.65 billion
concerted efforts of the railway and shipping companies tons, with intermodal, automotive goods, and bulk
concerned. Today, most logistics operators are capable freight reporting substantial increases. There was also
of monitoring the cargo during the whole process and particular growth in trains travelling to and from Europe,
provide the consignor with clearance on arrival at the with 1,702 trains travelling from China, an increase of
railway terminus, warehousing and transshipment to the 109 percent, and 572 making the return journey, an
desired destination (HKTC). increase of 116 percent. In 2017, passenger traffic is
expected to increase to 3.025 billion passengers, and
China won’t stop laying down more tracks even if they rail freight volumes to 2.75 billion tons (Smith).
have gone as far as they can go to London. China’s railway
investment rose in the first half year and the investment Shipping by rail between Europe and Asia got a little
is set to hit a new high in 2017. In the first half year, fixed more flexible in 2017 when UPS added six new stations
asset investment on railways hit 312.5 billion yuan, up 1.9 to its continent-spanning rail service – four in China and
percent year-on-year.“Investment is expected to hit a new two in Europe. The rail line, running from Germany and
224
