Page 276 - 2019 White Paper on the Business Environment in China
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9 White Paper on the Business Environment in China
billion yuan (US$112.4 billion) for fixed-asset investment China saw 297 million air passenger trips during the
in 2018—less than the 801 billion yuan for 2017 but first half of 2018, a 12.4 percent year-on-year increase,
roughly in line with the average of the past five years. according to the CAAC. Air passenger traffic volume
Railways are a key area for the government to invest in represented 31 percent of the country’s comprehensive
as it tries to stabilize economic growth at a time when transportation system, a two-percentage-point year-
it has tightened regulation of the property market and on-year increase. The flight punctuality rate of was 79.52
put funding of public-private partnership(PPP) projects percent, representing an 8.33-percentage-point year-
under closer scrutiny (Tang). on-year increase, while its flight volume increased by
8.38 percent compared with the first half in 2017. CAAC
Metros and Subways forecasts that the number of China’s air passenger trips
is expected to reach 612 million in 2018, an 11 percent
By the end of December 2017, 33 cities in China year-on-year increase (China Daily, China Sees).
had rail transit and the total mileage exceeded 4,500
miles. The number of routes has totaled 139 and the China’s airlines are rising up the world rankings at a
accumulated operating mileage has reached 4,400 miles. breathtaking pace. In 2007 passengers in China made
53 cities have routes of rail transit under construction 184 million journeys by air. About 550 million did in
and the total mileage under construction has reached 2017. The International Air Transport Association predicts
5,770 miles. Among them, there are 5 first-tier cities, 26, that China will leapfrog America as the world’s biggest
second-tier cities and 22 third-tier and below cities. By market by 2022 through a combination of slightly faster
the year 2020, the operating mileage of urban rail transit Chinese growth and slightly reduced growth in the US.
in China is expected to reach 7,700 miles (Rail+Metro). It previously estimated the point would occur around
Urban rail transit in China has developed towards 2024.. During the next two decades Airbus and Boeing,
larger scale, networked structure, diversified systems, the world’s two big manufacturers of passenger aircraft,
intellectualized equipment and independent technology forecast that Chinese carriers will buy more jets than
in recent years. Mid-volume and diversified railway American airlines. The expansion of its domestic market
systems have been developed fast. A larger market has been a key driver, with capacity set to rise to 629.2
attracted more stakeholders such as BYD Group, Alibaba million this year compared with 242 million a decade
(Alipay), Baidu and Tencent to take part in the business. ago. The total number of available seats has increased
New technologies such as cashless payment and face from 320 million in 2008 and will hit 802 million in 2017.
scan payment have applied to various cities and have Meanwhile, the international seat capacity has risen from
vastly changed people’s payment patterns (Shi). 78 million to 172.8 million over the same periods (Casey).
Airlines The menace to the world’s established carriers goes
deeper. Chinese airlines are turning themselves into
China had more than 549 million air passengers in connectors. The cheapest way to get from London to
2017, a significant contribution to the world aviation Australia, for instance, is no longer via Dubai or Abu
industry, which hit a new record of 4.1 billion passengers Dhabi but through Guangzhou, Shanghai or Wuhan. The
the previous year.The international civil aviation industry Chinese authorities have loosened visa requirements
saw a 7.1 percent year-on-year increase in the number to encourage this kind of transfer traffic. The big three
of passengers carried on scheduled services in 2017, American carriers, however, also see opportunity.
the International Civil Aviation Organization (ICAO) American, Delta and United want an open-skies treaty,
said. The number of flight departures globally rose to which would allow airlines to fly between any airport in
about 37 million in 2017. China’s civil aviation industry the two countries. Theoretically, open-skies deals open
exceeded ten million flight hours annually for the first the door to joint ventures, which are granted immunity
time in 2017, according to statistics released by Civil from antitrust rules and so can potentially lead to higher
Aviation Administration of China (CAAC). The country prices. In 2006-16 the share of long-haul passenger traffic
recorded 549 million air passengers and 7.12 million controlled by such joint ventures leapt from 5 percent to
tons of air cargo in 2017, a 12.6 and 6.6 percent year-on- 25 percent. Three joint ventures accounted for almost
year increase respectively. China’s air passenger volume 80 percent of the transatlantic market. The established
is forecast to reach 612 million in 2018, an 11 percent American airlines would love to team up with Chinese
year-on-year increase (Xinhua, China Contributes). rivals in order to dominate the Pacific, too. The chances
276
billion yuan (US$112.4 billion) for fixed-asset investment China saw 297 million air passenger trips during the
in 2018—less than the 801 billion yuan for 2017 but first half of 2018, a 12.4 percent year-on-year increase,
roughly in line with the average of the past five years. according to the CAAC. Air passenger traffic volume
Railways are a key area for the government to invest in represented 31 percent of the country’s comprehensive
as it tries to stabilize economic growth at a time when transportation system, a two-percentage-point year-
it has tightened regulation of the property market and on-year increase. The flight punctuality rate of was 79.52
put funding of public-private partnership(PPP) projects percent, representing an 8.33-percentage-point year-
under closer scrutiny (Tang). on-year increase, while its flight volume increased by
8.38 percent compared with the first half in 2017. CAAC
Metros and Subways forecasts that the number of China’s air passenger trips
is expected to reach 612 million in 2018, an 11 percent
By the end of December 2017, 33 cities in China year-on-year increase (China Daily, China Sees).
had rail transit and the total mileage exceeded 4,500
miles. The number of routes has totaled 139 and the China’s airlines are rising up the world rankings at a
accumulated operating mileage has reached 4,400 miles. breathtaking pace. In 2007 passengers in China made
53 cities have routes of rail transit under construction 184 million journeys by air. About 550 million did in
and the total mileage under construction has reached 2017. The International Air Transport Association predicts
5,770 miles. Among them, there are 5 first-tier cities, 26, that China will leapfrog America as the world’s biggest
second-tier cities and 22 third-tier and below cities. By market by 2022 through a combination of slightly faster
the year 2020, the operating mileage of urban rail transit Chinese growth and slightly reduced growth in the US.
in China is expected to reach 7,700 miles (Rail+Metro). It previously estimated the point would occur around
Urban rail transit in China has developed towards 2024.. During the next two decades Airbus and Boeing,
larger scale, networked structure, diversified systems, the world’s two big manufacturers of passenger aircraft,
intellectualized equipment and independent technology forecast that Chinese carriers will buy more jets than
in recent years. Mid-volume and diversified railway American airlines. The expansion of its domestic market
systems have been developed fast. A larger market has been a key driver, with capacity set to rise to 629.2
attracted more stakeholders such as BYD Group, Alibaba million this year compared with 242 million a decade
(Alipay), Baidu and Tencent to take part in the business. ago. The total number of available seats has increased
New technologies such as cashless payment and face from 320 million in 2008 and will hit 802 million in 2017.
scan payment have applied to various cities and have Meanwhile, the international seat capacity has risen from
vastly changed people’s payment patterns (Shi). 78 million to 172.8 million over the same periods (Casey).
Airlines The menace to the world’s established carriers goes
deeper. Chinese airlines are turning themselves into
China had more than 549 million air passengers in connectors. The cheapest way to get from London to
2017, a significant contribution to the world aviation Australia, for instance, is no longer via Dubai or Abu
industry, which hit a new record of 4.1 billion passengers Dhabi but through Guangzhou, Shanghai or Wuhan. The
the previous year.The international civil aviation industry Chinese authorities have loosened visa requirements
saw a 7.1 percent year-on-year increase in the number to encourage this kind of transfer traffic. The big three
of passengers carried on scheduled services in 2017, American carriers, however, also see opportunity.
the International Civil Aviation Organization (ICAO) American, Delta and United want an open-skies treaty,
said. The number of flight departures globally rose to which would allow airlines to fly between any airport in
about 37 million in 2017. China’s civil aviation industry the two countries. Theoretically, open-skies deals open
exceeded ten million flight hours annually for the first the door to joint ventures, which are granted immunity
time in 2017, according to statistics released by Civil from antitrust rules and so can potentially lead to higher
Aviation Administration of China (CAAC). The country prices. In 2006-16 the share of long-haul passenger traffic
recorded 549 million air passengers and 7.12 million controlled by such joint ventures leapt from 5 percent to
tons of air cargo in 2017, a 12.6 and 6.6 percent year-on- 25 percent. Three joint ventures accounted for almost
year increase respectively. China’s air passenger volume 80 percent of the transatlantic market. The established
is forecast to reach 612 million in 2018, an 11 percent American airlines would love to team up with Chinese
year-on-year increase (Xinhua, China Contributes). rivals in order to dominate the Pacific, too. The chances
276
