CHINESE ACADEMY OF INTERNATIONAL TRADE
AND ECONOMIC COOPERATION
MINISTRY OF COMMERCE, P. R. CHINA

Wed.29/10/2014

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Abstract:At present, China has mastered the core competitive strength of theconstruction of high-speed rail project. In the process of "goingout", the high-speed rail project has created driving effect, spillovereffect and scale effect, which not only promotes the technology innovation butalso improves the interconnection of China and neighboring countries. However, Chineseinvestors may face risks in launching high-speed rail projects. Chinese firmsmay be unable to recoup their investment. China's overseas high-speed railwayprojects are mostly financially backed by Chinese policy banks, with the bidusually too low. Additionally, host countries may struggle in making theseprojects self-sustaining. To minimize risks, Chinese firms should focus on riskassessment. Diversified ways of financing need to be developed to offset riskand avoid passing debt risks onto Chinese policy banks. The model which ensuresseamless connection between construction and operation should be adopted

Keywords: high-speed rail projects; Overseas investment; Risk assessment;

The author isthe associate research fellow of the Institute of International DevelopmentCooperation.

This article ispublished on China National Conditions and Strength (March, 2017).


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