Page 274 - 2019 White Paper on the Business Environment in China
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9 White Paper on the Business Environment in China
executive chairman Pierfrancesco Vago claims China High-speed Trains
has great potential. “If we could overcome the cabotage
restrictions and call in more ports, and embark and On Aug 1, 2008, China’s first high-speed railway
disembark along the Chinese coast, there will be a much line-from Beijing to Tianjin-began operations. It was
bigger boom … that would have incredible potential created at least in part to ferry foreign visitors during
and incredible opportunity,” Vago said (CIN, 2018 State). the Beijing Olympics. Fast trains in China have come a
long way since then. Now, the much faster high-speed
Accenture Consulting’s 2018 China Tourism Insights train, running at more than 300 km per hour, takes 35
Report claims that the key is the 18- to 34-age group in minutes from Tianjin to Beijing.
China in the mid- and high-income range. This demo
has a high interest in cruising. Their top deciding Over 25,000 km of track have been laid across the
factors that influence purchasing include the variety of country, two-thirds of the world’s total, including the
services, loyalty programs and discounts, vacation style first high-speed railway in North China’s Inner Mongolia
experiences, and ability to choose vacation themes. That autonomous region that was completed in 2018. It is
group also wants high-technology vacation options, the expected to start operations at the end of 2019 along
ability to manage the trip on their smart phones, and an with the Beijing-Zhangjiakou high-speed railway. The two
“advanced technology”stateroom experience. For cruise lines will reduce travel time between Beijing and Hohhot
travel, pricing leads the way in purchasing decisions, from nine hours to three. By then, all provincial-level
followed by unique onboard activities. Destination and regions on the Chinese mainland will have high-speed
itinerary options are ranked third. Across China, only trains, except the Tibet autonomous region. A high-
10 percent of tourism packages are purchased online. speed railway connecting Beijing and Guangzhou has
That leaves plenty of room to grow. An international shortened the travel time across the 2,300-km distance
marketplace will also expose the Chinese tourism to eight hours. More than 4,000 bullet trains run in China,
market to not only competition, but also collaboration carrying 4 million passengers every day, according to the
opportunities globally (CIN, Young Chinese). China Railway Corp. By 2020, the length of China’s high-
speed rail lines is expected to reach 30,000 km, covering
Railway 80 percent of major cities. A network of eight east-west
high-speed rail lines and eight north-south lines will be
China planned to spend 732 billion yuan (US$112.7 built, according to a railway development plan. By the
billion) on about 4,000 kilometers of new tracks, 87.5 end of 2017, China’s high-speed trains had carried more
percent or 3,500 km will be high-speed railway tracks. than 7 billion passengers.
China’s railways handled about 3.25 billion passenger
trips in 2018, an increase of about 6.9 percent from Between 2013 and 2017, China spent 3.9 trillion
3.04 billion in 2017. China’s new generation Fu-xing, or yuan on railway projects, making it a record period
Rejuvenation, bullet trains, started running between for intensive, mass investment on the railway system.
Beijing and Shanghai in July of that year. The Fuxing Between those years, 18,270 miles of new track was laid
trains are a substantial upgrade over the previous bullet and more than half of that, 9,760 miles, was for high-
trains, known as Hexie or Harmony. Entirely designed speed trains. China spent 801 billion yuan on railways
and manufactured in China, Fuxing trains are more and put 1,890 miles of new track into operation, meeting
spacious and energy-efficient, with a longer service life its annual targets for the year of 800 billion yuan in
and better reliability. According to the nation’s five-year investment and 1,300 miles of new lines in 2017. By the
transportation plan, by 2020, the nation’s rail system end of that year the country’s rail system had reached a
is expected to reach 150,000 km. High-speed railways total length of 78,910 miles, including 15,530 miles of
will reach 30,000 kilometers, covering over 80 percent high-speed track, which was 66.3 percent of the world’s
of cities with more than 1 million permanent residents. high-speed railway total (Luo, How the Fastest).
Railways, along with expressways and civil airports, are
expected to cover cities with permanent populations Despite the mountain of debt racked up by China
of over 200,000. By 2025, railway network is to reach Railway Corp through years of huge construction
175,000 km, including 38,000 km of high-speed rails projects, analysts say the plan will help to offset a decline
(Luo, Rail System to Grow). in property investment and to stabilize economic
growth in the country. The company allocated 732
274
executive chairman Pierfrancesco Vago claims China High-speed Trains
has great potential. “If we could overcome the cabotage
restrictions and call in more ports, and embark and On Aug 1, 2008, China’s first high-speed railway
disembark along the Chinese coast, there will be a much line-from Beijing to Tianjin-began operations. It was
bigger boom … that would have incredible potential created at least in part to ferry foreign visitors during
and incredible opportunity,” Vago said (CIN, 2018 State). the Beijing Olympics. Fast trains in China have come a
long way since then. Now, the much faster high-speed
Accenture Consulting’s 2018 China Tourism Insights train, running at more than 300 km per hour, takes 35
Report claims that the key is the 18- to 34-age group in minutes from Tianjin to Beijing.
China in the mid- and high-income range. This demo
has a high interest in cruising. Their top deciding Over 25,000 km of track have been laid across the
factors that influence purchasing include the variety of country, two-thirds of the world’s total, including the
services, loyalty programs and discounts, vacation style first high-speed railway in North China’s Inner Mongolia
experiences, and ability to choose vacation themes. That autonomous region that was completed in 2018. It is
group also wants high-technology vacation options, the expected to start operations at the end of 2019 along
ability to manage the trip on their smart phones, and an with the Beijing-Zhangjiakou high-speed railway. The two
“advanced technology”stateroom experience. For cruise lines will reduce travel time between Beijing and Hohhot
travel, pricing leads the way in purchasing decisions, from nine hours to three. By then, all provincial-level
followed by unique onboard activities. Destination and regions on the Chinese mainland will have high-speed
itinerary options are ranked third. Across China, only trains, except the Tibet autonomous region. A high-
10 percent of tourism packages are purchased online. speed railway connecting Beijing and Guangzhou has
That leaves plenty of room to grow. An international shortened the travel time across the 2,300-km distance
marketplace will also expose the Chinese tourism to eight hours. More than 4,000 bullet trains run in China,
market to not only competition, but also collaboration carrying 4 million passengers every day, according to the
opportunities globally (CIN, Young Chinese). China Railway Corp. By 2020, the length of China’s high-
speed rail lines is expected to reach 30,000 km, covering
Railway 80 percent of major cities. A network of eight east-west
high-speed rail lines and eight north-south lines will be
China planned to spend 732 billion yuan (US$112.7 built, according to a railway development plan. By the
billion) on about 4,000 kilometers of new tracks, 87.5 end of 2017, China’s high-speed trains had carried more
percent or 3,500 km will be high-speed railway tracks. than 7 billion passengers.
China’s railways handled about 3.25 billion passenger
trips in 2018, an increase of about 6.9 percent from Between 2013 and 2017, China spent 3.9 trillion
3.04 billion in 2017. China’s new generation Fu-xing, or yuan on railway projects, making it a record period
Rejuvenation, bullet trains, started running between for intensive, mass investment on the railway system.
Beijing and Shanghai in July of that year. The Fuxing Between those years, 18,270 miles of new track was laid
trains are a substantial upgrade over the previous bullet and more than half of that, 9,760 miles, was for high-
trains, known as Hexie or Harmony. Entirely designed speed trains. China spent 801 billion yuan on railways
and manufactured in China, Fuxing trains are more and put 1,890 miles of new track into operation, meeting
spacious and energy-efficient, with a longer service life its annual targets for the year of 800 billion yuan in
and better reliability. According to the nation’s five-year investment and 1,300 miles of new lines in 2017. By the
transportation plan, by 2020, the nation’s rail system end of that year the country’s rail system had reached a
is expected to reach 150,000 km. High-speed railways total length of 78,910 miles, including 15,530 miles of
will reach 30,000 kilometers, covering over 80 percent high-speed track, which was 66.3 percent of the world’s
of cities with more than 1 million permanent residents. high-speed railway total (Luo, How the Fastest).
Railways, along with expressways and civil airports, are
expected to cover cities with permanent populations Despite the mountain of debt racked up by China
of over 200,000. By 2025, railway network is to reach Railway Corp through years of huge construction
175,000 km, including 38,000 km of high-speed rails projects, analysts say the plan will help to offset a decline
(Luo, Rail System to Grow). in property investment and to stabilize economic
growth in the country. The company allocated 732
274
