BEIJING is investing CNY800 billion (US$128 billion) in nation-wide railway construction this year and plans to increase its global market share in building rail infrastructure overseas, reports Bloomberg.
Chinese Premier Li Keqiang in his annual state-of-the-nation report, said 8,427 kilometres of track went into service last year, totalling 16,000 kilometres of high-speed rail now in operation, more than 60 per cent of the world's total.
"We will encourage Chinese companies to participate in overseas infrastructure development projects and engage in cooperation with their foreign counterparts in building up production capacity," said Premier Li.
Eight thousand kilometres (4,971 miles) of railway lines will be opened to domestic traffic this year,
China is also targeting Africa, Eastern Europe, Latin America and Southeast Asia while also seeking contracts in US.
China's biggest locomotive makers, China CNR Corp and CSR Corp, have recently announced a merger plans to increase exports of high-speed rail technology.
"Premier Li's comments were definitely a trigger," said Cao Xuefeng, a Chengdu-based analyst with Huaxi Securities. "Details on the 'one belt, one road' policy were particularly interesting for the sector."
The policy making National Development and Reform Commission (NDRC) report stressed "infrastructure connectivity" acceleration with Pakistan, Bangladesh, India and Myanmar as part of China's Silk Road Economic Belt and 21st Century Maritime Silk Road initiatives.
China's "one belt, one road" strategy is an attempt to build a new framework for regional development, National People's Congress spokeswoman Fu Ying told reporters. China set up a $16.3 billion Silk Road Fund last November to finance infrastructure construction linking its markets to three continents.
China's outbound direct investment reached $102.9 billion in 2014, a figure the government hopes to raise this year to $113 billion, the NDRC said.
Source : HKSG.