How much money is China losing on high-speed rail?

Wider Risks to the Chinese Economy In 2020, China Railway's final profit and loss statement recorded losses of ¥55 billion CNY (approx. ¥1.1 trillion JPY/ $7.9 billion USD), while in 2021, it was in the red by ¥49.8 billion CNY (approx. ¥1 trillion JPY/ $7.2 billion USD).



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It costs 120 million to 130 million yuan to extend the high-speed rail 1 km, he estimates. This suggests that extending the network by 8,000 km by 2025 would take an investment on the scale of 1 trillion yuan.

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The interstate highway system cost $129 billion — roughly $290 billion in current dollars — and took 35 years to complete, running from 1957 to 1992. The $1.2 trillion infrastructure bill enacted in 2021 has $102 billion for rail, but none of the money is set aside for high-speed rail.

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High-Speed Rail Is Too Expensive Building the 48,000-mile Interstate Highway System cost about $500 billion (in today's dollars). Paid for entirely out of user fees, it carries about 25 percent of all passenger travel and 15 percent of all freight in the United States.

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Implementing high-speed rail (HSR) will provide Americans with more transportation choices. It will also make sure that America remains an economic engine, and meets the environmental and energy challenges of this century.

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Between 1949 and 2017, the federal government invested only $10 billion in high-speed rail with $4 billion of that dedicated to the California project, compared to investments of $777 billion in aviation and over $2 trillion in highways. The federal government can't expect transformative results with piecemeal funding.

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For China's ruling Communist Party and its leader Xi Jinping, high-speed rail is also a powerful tool for social cohesion, political influence and the integration of disparate regions with distinct cultures into the mainstream.

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In 2021, Beijing-Shanghai High-speed Railway Co., Ltd. earned a total net profit of 4.8 billion yuan, an increase of more than 49 percent from the previous year. Established in Beijing in 2007, it is the only railroad company in China that introduces social cash investors and Sino-foreign cooperative operations.

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The auto industry was booming, and Americans bought cars and houses in suburbs without rail connections. Highways (as well as aviation) became the focus of infrastructure spending, at the expense of rail.

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the Federal Railroad Administration's (FRA) High-Speed Intercity Passenger Rail (HSIPR) Program, which was launched in 2009. California's high-speed rail project received federal funding through the HSIPR program under the American Recovery and Reinvestment Act of 2009 (ARRA) and the Consolidated Appropriations Act, ...

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California's landmark Cap-and-Trade Program, created by the California Air Resources Board in 2008, is also a source of funding for the high-speed rail project. This program generates revenue by selling quarterly greenhouse gas allowances, or permits, through an auction mechanism.

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Inflation and higher construction costs have contributed to the high price tag. The project has spent $9.8 billion so far, according to Brian Kelly, CEO of the California High-Speed Rail Authority. We knew we've had a funding gap ever since the project started, Kelly said.

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High-speed rail is generally regarded as the pinnacle of attractive and green transportation. But all too often, it makes train travel more expensive and less flexible. In the end, costly high-speed lines may just push more people into cars.

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The Great Depression of the 1930s forced some railroad companies into bankruptcy, creating hundreds of miles of disowned and subsequently abandoned railway properties; other railroad companies found incentive to merge or reorganize, during which excess or redundant rights-of-way were abandoned.

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