{"id":243655,"date":"2010-01-28T14:01:00","date_gmt":"2010-01-28T19:01:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/americas-new-high-speed-rails-will-be-built-by-china-2010-1"},"modified":"2010-01-28T14:01:00","modified_gmt":"2010-01-28T19:01:00","slug":"stimulus-funded-high-speed-rail-likely-to-lose-money-and-be-built-by-chinese-companies","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/243655","title":{"rendered":"Stimulus-Funded High Speed Rail Likely To Lose Money And Be Built By Chinese Companies"},"content":{"rendered":"

\"china<\/p>\n

China’s railroad giants are licking their lips at the thought of America’s large stimulus hand-outs<\/a> for high-speed rail.<\/p>\n

In preparation for their potential market, China Railway Group recently sent a delegation to America. China Railway Construction has already signed contracts with the transportation division of G.E., according to Caing<\/a>.<\/p>\n

Although U.S. state governments won’t want to pay Chinese firms with stimulus money, they may have no choice.<\/p>\n

First of all, they need the right know-how. China has the fastest train<\/a> and the fastest-growing transportation system<\/a>.<\/p>\n

Second, they need to do things as cheap as possible. Near-bankrupt state governments can hardly afford the expenses involved with a high-speed network, even with money from the stimulus. Moreover, most high-speed railways in the world are actually loss-making, due to interest payments on construction costs, according to Caing<\/a>. Chinese firms appear eager to provide competitive offers, labor, and potentially even capital.<\/p>\n

Chinese rail deals are especially likely to happen in California. Although the Golden State received the lion’s share<\/a> of railroad funds, its $2 billion package was well short of the $4.7 billion requested. Besides, California has already demonstrated a willingness to outsource basic infrastructure projects to Mexico<\/a> and China<\/a> to keep the state moving.<\/p>\n

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