Investment
INFRASTRUCTURE Costs |
While infrastructure is necessary for the successful function of a country, China's extreme spending is unsustainable. At this time, China not only spends more on infrastructure annually than the U.S. and Europe combined, but their current rates of investment imply that the country is expected to exceed its needs by 2030.1 Between 2001 and 2004 alone, China grew its financial investment in rural roads by 51% annually.2
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Upcoming |
China will spend an estimated 4.7 trillion yuan, or 724 billion USD, on transport infrastructure projects between 2016 and 2018, with costs going primarily to improving transport and logistics for economic development.3
High speed railways are the most prominent medium of transportation infrastructure being developed. Currently, China's fastest high speed trains travels about 430 kilometers per hour, the equivalent of 267 miles per hour.4 High-speed trains currently being developed will take passengers 500 kph, or 310 mph.5 The country is currently working towards an international infrastructure plan to recreate the Silk Road under modern technologies. Launched in February 2014 with $40 billion, the One Belt One Road project involves the funding and building of roads, bridges, and tunnels across Central Asia in order to "reduce excessive industrial capacity at home while increasing financial returns."6 |
Sources
1 http://www.bloomberg.com/news/articles/2016-06-15/china-spends-more-on-infrastructure-than-the-u-s-and-europe-combined
2 http://www.mckinsey.com/global-themes/winning-in-emerging-markets/chinese-infrastructure-the-big-picture
3 http://www.reuters.com/article/us-china-transport-investment-idUSKCN0Y3050
4 http://www.chinahighlights.com/travelguide/transportation/the-fastest-train.htm
5 http://www.cnbc.com/2016/09/25/china-developing-500kmh-trains-to-lead-export-of-high-speed-rail-technology.html
6 http://nationalinterest.org/feature/chinas-huge-one-belt-one-road-initiative-sweeping-central-17150
"The Cost of the World's Biggest Infrastructure Projects"
"China working on 310mph passenger trains"
2 http://www.mckinsey.com/global-themes/winning-in-emerging-markets/chinese-infrastructure-the-big-picture
3 http://www.reuters.com/article/us-china-transport-investment-idUSKCN0Y3050
4 http://www.chinahighlights.com/travelguide/transportation/the-fastest-train.htm
5 http://www.cnbc.com/2016/09/25/china-developing-500kmh-trains-to-lead-export-of-high-speed-rail-technology.html
6 http://nationalinterest.org/feature/chinas-huge-one-belt-one-road-initiative-sweeping-central-17150
"The Cost of the World's Biggest Infrastructure Projects"
"China working on 310mph passenger trains"