Date
30 March 2017
A much-touted partnership between US and Chinese firms for an American high-speed rail venture has collapsed in less than a year. Photo: Bloomberg
A much-touted partnership between US and Chinese firms for an American high-speed rail venture has collapsed in less than a year. Photo: Bloomberg

Chinese group thrown out of US high-speed rail venture

A high-speed rail agreement touted as a symbol of US-China cooperation has fallen apart less than a year after it was signed, the Wall Street Journal reported.

XpressWest, a private US firm, was quoted as saying Thursday that a venture with China Railway International to build a high-speed rail line to link Southern California with Las Vegas won’t proceed.

The American firm said it scrapped the partnership due to “difficulties associated with timely performance” and the Chinese side’s challenges in obtaining necessary approvals to proceed with the project.

China Railway International is a specially formed company that includes state-owned China Railway Group, CRRC Corp. and China State Construction Engineering Corp. 

Chinese state news agency Xinhua quoted a China Railway International official as saying that XpressWest’s move was “irresponsible” and that the Chinese side will seek to defend its interests.

The deal between XpressWest and China Railway International had been announced by Chinese government authorities last September, ahead of a formal visit by President Xi Jinping to the US.

Had it materialized, the project would have been the first high-speed rail system to be built in the US by Chinese companies, the Journal noted.

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