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China launches new infrastructure

Thursday, December 27 09:58:30

China began service Wednesday morning on the world's longest high-speed rail line, covering a distance in eight hours that is about equal to that from New York to Key West, Fla., or from London across Europe to Belgrade, Serbia.

Trains traveling 300 kilometers, or 186 miles, an hour, began regular service between Beijing and Guangzhou, the main metropolis in southeastern China. Older trains still in service on a parallel rail line take 21 hours; Amtrak trains from New York to Miami, a shorter distance, still take nearly 30 hours.

Completion of the Beijing-Guangzhou route - roughly 1,200 miles - is the latest sign that China has resumed rapid construction on one of the world's largest and most ambitious infrastructure projects, a network of four north-south routes and four east-west routes that span the country.

Lavish spending on the project has helped jump-start the Chinese economy twice: in 2009, during the global financial crisis, and again this autumn, after a brief but sharp economic slowdown over the summer.

The hiring of as many as 100,000 workers for each line has kept a lid on unemployment as private-sector construction has slowed because of limits on real estate speculation. The national network has helped to reduce air pollution in Chinese cities and helped to curb demand for imported diesel fuel by freeing capacity on older rail lines for goods to be carried by freight trains instead of heavily polluting, costlier trucks.

But the high-speed rail system has also been controversial in China. Debt to finance the construction has reached nearly 4 trillion renminbi, or $640 billion, making it one of the most visible reasons total debt has been surging as a share of economic output in China, and is approaching levels in the West.