China to Attract Foreign Investment for Railway Construction

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Last updated at: (Beijing Time) Sunday, December 30, 2001

China to Attract Foreign Investment for Railway Construction

The Friday closed National Railway Working Conference disclosed that China's railway sector will open wider to the outside world next year by further implementing the asset management responsibility system, pushing forward separate accounting of freight transport and railway network operation and speeding up restructuring of non-transportation enterprises.

China's entry into the WTO has spurred the railway sector to open itself wider to the outside world. The sector will take active measures to attract more foreign capital into railway construction while making full use of foreign loans. The railway freight transport market has been opened formally by allowing foreign investors to set up joint ventures.

The Ministry of Railways will grant more independent decision-making power to railway bureaus, such as the power over the examination and approval of enterprise investment. Meanwhile, efforts will also be made to check up on projects for administrative approval, revise outdated rules and regulations and reduce administrative interference in enterprises. The 14 railway bureaus are asked to basically complete the grouping of internal passenger transport companies next year.

The Ministry of Railways will choose one or two units for experiment with the formation of a freight transport business department, and carrying out analog calculation relating to separate accounting of freight transport and network operation. Engineering enterprises under railway bureaus will basically complete transformation into corporations and break the single property right structure through shareholding by legal persons and employees as well as purchase and merger.

By PD Online Staff Li Heng

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