Stumbling block for China railway development overseas

In a commentary, SMU PhD research student Chen Xing Li commented on Mexico’s recent decision to suspend a US$3.7 billion high-speed railway project and to revoke its contract with China Railway Construction Corp (CRCC), as part of the country’s measures to cut government spending amidst declining oil prices. This is despite the CRCC’s extremely attractive bidding price and deliverables. He called the decision by the Mexican authorities a disappointment and a stumbling block to China’s railway development abroad, and highlighted that this is a repeat of past events in Myanmar and Vietnam, both of which have yet to find another company to undertake their railway development projects. The international market is critical to China’s railway development, and currently more than 50 countries have expressed interest in working on projects together. However, local politics remain a major obstacle to China in this respect.