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uncensored

2,647 posts

Posted by uncensored > 2022-01-31 16:01 | Report Abuse

$44 Million Loss per Day | High-Speed Rail, the Gray Rhino Impacting China’s Economy | Ghost Rail

China Observer
169K subscribers
As of the end of 2020, China's high-speed rail operating mileage reached 37,900 kilometers, accounting for two-thirds of the world's total mileage, far ahead of other countries.
If you only look at the operating mileage and the speed, you’ll think China's made great achievements for the high-speed rail. But if you look on the other side, China's high-speed rail is also No.1 in terms of debt and operating losses, and has a detrimental impact on China's cargo transportation structure.
On August 31, China Railway released its financial results for the first half of 2021. Data show that in the first half of the year, the company achieved a revenue of 512.8 billion RMB, the net profit is a loss of 50.7 billion RMB, which is equivalent to a daily loss of 280 million RMB, or 44 Million USD. In the first half of last year, due to the impact of the pandemic, the company’s net loss was as high as 95.5 billion RMB.
As of June 30, China Railway’s total liabilities reached 5.8 trillion RMB, its total assets are 8.76 trillion, and the gearing ratio exceeds 66%. The construction of China's high-speed rail relies mainly on bond issuance and bank loans. As reported by China Newsweek in April this year, the pressure of debt repayment for China Railway has arrived.
Most of these bonds have a 5-year maturity term. Since 2021, the peak period of principal and interest repayment has come. At present, the cash flow of railway transportation revenue is not enough to cover operating costs, and China Railway’s daily operations still rely on financial subsidies, no need to even mention repaying debts and interest.
Many local governments have shouldered huge debts because of the high-speed rail construction.
The construction of high-speed rail projects in underdeveloped areas leads to high levels of the local government debt, while the low utilization rate and low operating income of high-speed rail will expose local governments to higher financial risks than China Railway Corporation.
The local government debt caused by the construction of high-speed rail is a black box, mixed with various types of local government liabilities, which have been estimated to be as high as 18.29 trillion RMB. In a previous video, we have talked about how serious local governments’ debts are, and it’s presumed that the construction of high-speed rail is also contributing a lot to the debt.
In addition, along with the construction of high-speed railways, there are the high-speed rail concept cities. These numerous unfinished projects have caused a great waste of farmland and social resources.
The design speed of China's high-speed railway is more than 200 kilometers per hour, and the maximum speed is 350 kilometers per hour. Public information shows that the weighted average unit cost of China's high-speed rail is: 129 million RMB/km for railways with a speed of 350 kilometers per hour; and 87 million RMB/km for speeds of 250 kilometers per hour.
In 2015, the transportation density of the Beijing-Shanghai high-speed rail was about 48 million passenger- kilometers, which was the highest in China's high-speed rails, while the Lanzhou - Xinjiang high-speed rail had the lowest transportation density, only about 2.3 million passenger-kilometers.
In addition, large-scale high-speed rail construction has severely distorted China's transportation structure.
Although the more high-speed railways are built, the more losses there are, Chinese officials have been increasing their efforts to build high-speed railways.
From top to lower levels, Chinese officials all attach importance to the so-called face-saving project.
In addition, the development of China's high-speed rail is also closely related to the Belt and Road initiative.
Now, China’s high-speed rail project not only seems to have failed to help realize its ambitions of global hegemony, it may also become a gray rhino that destroys China’s economy and eventually trigger a huge financial disaster.

https://www.youtube.com/watch?v=4wsMjxESAY0

Tobby

5,981 posts

Posted by Tobby > 2022-01-31 16:11 | Report Abuse

China invested wisely in mass transportation! There's no concern actually! US burned 4 trillion in useless wars!

uncensored

2,647 posts

Posted by uncensored > 2022-01-31 16:17 | Report Abuse

Next Evergrande? $900 Billion in debt, 24 million loss per day, the highest of its kind in the world

China Insights
150K subscribers

What does 900 billion USD of debt look like? Shanghai, the richest city in China, has a total GDP of $600 billion in 2020, which means that even the whole year of Shanghai’s GDP won’t be able to cover the debt of China National Railway.
$900 billion debt is the official figure. No one knows how much the actual deficit and debt are. The total debt is likely to double that or reach nearly 1,800 billion USD. Why?

https://www.youtube.com/watch?v=eLCa6Vl7EeQ

qqq3333

5,593 posts

Posted by qqq3333 > 2022-01-31 16:20 | Report Abuse

state company how to be evergrande?

Tobby

5,981 posts

Posted by Tobby > 2022-01-31 16:21 | Report Abuse

Mass transportation is not about making profit alone! It provides mobility for the masses! Which government of the day should be doing! Look at Singapore! They invested heavily on public transporation! Same with Japan! China is just copying them! As for US, can't even build a single HSR line! Only talk big! US debts is far more worrying than China! China didn't spend a single cent in engaging useless war!

qqq3333

5,593 posts

Posted by qqq3333 > 2022-01-31 16:21 | Report Abuse

the central bank prints money, problem solved.

qqq3333

5,593 posts

Posted by qqq3333 > 2022-01-31 16:23 | Report Abuse

its not about evergrande, its about priorities.

qqq3333

5,593 posts

Posted by qqq3333 > 2022-01-31 16:24 | Report Abuse

there is no bubble if the debt is written off.

uncensored

2,647 posts

Posted by uncensored > 2022-01-31 16:25 | Report Abuse

qqq3333 you sounded like Tobby

Hahahahaha

Only positive words

qqq3333

5,593 posts

Posted by qqq3333 > 2022-01-31 16:28 | Report Abuse

uncen.....if one state company owes money to another state company.....if left pocket owes money to right pocket.....the emperor can write off the dam thing, problem solved.....man makes laws, but emperor is above the law.

uncensored

2,647 posts

Posted by uncensored > 2022-01-31 16:29 | Report Abuse

High-speed Railways Fall into Debt Trap in China

https://www.youtube.com/watch?v=JcruPL-FFK8

Tobby

5,981 posts

Posted by Tobby > 2022-01-31 16:30 | Report Abuse

Uncensored! I used to sound like you! So anti CCP! But then it got me thinking! Why i am so brainwash by western media social! I mean, can't we just leave China alone!
Instead US should look at their own domestic problems! US today is total laughing stock! Capitalist system is total broken! Only dominated by very few! To extend that their democracy system is determine by vested group! And now US weird values are imposed by force like LBGT which their transgender, trans-racial and trans-age culture!

qqq3333

5,593 posts

Posted by qqq3333 > 2022-01-31 16:35 | Report Abuse

y uncensored > Jan 31, 2022 4:29 PM | Report Abuse

High-speed Railways Fall into Debt Trap in China
========


they are doubling down on their HSR and intends to extend the lines to 80k from 40 k currently....why? u jealous?

qqq3333

5,593 posts

Posted by qqq3333 > 2022-01-31 16:40 | Report Abuse

China can lend up to a trillion $ for BRI projects...........how in the world can these loans be ever repaid to china?


well, from China's perspective, still better than leaving the US$ in reserves not doing any thing.

qqq3333

5,593 posts

Posted by qqq3333 > 2022-01-31 16:42 | Report Abuse

like I say, man makes laws but the emperor is above the laws.....and the CPC is the emperor of China..............if emperor say can , then it becomes possible.

uncensored

2,647 posts

Posted by uncensored > 2022-01-31 16:42 | Report Abuse

Tobby are you sure you know me ah??

Last time when I was young I used to think like those who you love CPC. Being brainwashed by all the CPC propaganda media that created to brainwashed all oversea chinese. After become adult I realised all the picture & story created by CPC are FAKE.

Now I really love China ...

Hahahaha

You said you are like me SURE or not ???


>>>>>>>>>>>>>>>>
Posted by Tobby > Jan 31, 2022 4:30 PM | Report Abuse

Uncensored! I used to sound like you! So anti CCP! But then it got me thinking! Why i am so brainwash by western media social! I mean, can't we just leave China alone!
Instead US should look at their own domestic problems! US today is total laughing stock! Capitalist system is total broken! Only dominated by very few! To extend that their democracy system is determine by vested group! And now US weird values are imposed by force like LBGT which their transgender, trans-racial and trans-age culture!

qqq3333

5,593 posts

Posted by qqq3333 > 2022-01-31 16:51 | Report Abuse

y uncensored > Jan 31, 2022 4:29 PM | Report Abuse

High-speed Railways Fall into Debt Trap in China
========


the trouble with critics, they cannot solve America's problems but think they are smarter than Xi, smarter than the CPC, smarter than the think tanks in China..............

qqq3333

5,593 posts

Posted by qqq3333 > 2022-01-31 16:54 | Report Abuse

in 1980, China is a poor country.......

how the hell did a poor country built its infrastructure into world class over such a short time?

where did the CCP find the trillions of $ needed?


how? the CCP is smart, very smart.

qqq3333

5,593 posts

Posted by qqq3333 > 2022-01-31 17:18 | Report Abuse

u think China only dominates in HSR meh? China also dominates in slow trains, bridges, roads, tunnels, space exploration, space station, moon, Mars, satellites, nuclear fusion, particle physics, giant telescopes, and all the expensive super duper stuffs with no hope for profits.

qqq3333

5,593 posts

Posted by qqq3333 > 2022-01-31 17:19 | Report Abuse

China don't do things just to make money...They do things because they can.

uncensored

2,647 posts

Posted by uncensored > 2022-01-31 18:37 | Report Abuse

說好的支持國企呢?蘋果特斯拉業績在中國市場一騎絕塵,降價真香!國企毫無還擊之力
https://www.youtube.com/watch?v=K01Ku2gyQPw

qqq3333

5,593 posts

Posted by qqq3333 > 2022-02-01 10:03 | Report Abuse

Tesla and Apple is successful by working with the communists, not by working against the communists.

uncensored

2,647 posts

Posted by uncensored > 2022-02-01 13:28 |

Post removed.Why?

uncensored

2,647 posts

Posted by uncensored > 2022-02-01 13:30 | Report Abuse

As People Starve, Corrupt Officials WASTE Food Donations

China Uncensored
1.73M subscribers

As people starve from the brutal lockdowns in China, corrupt Chinese officials are throwing away food. In this episode of China Uncensored, we show you video footage of the waste, the ridiculous lengths some regions are going to to test inanimate objects, and how sanitizing the streets has become a deadly endeavor.

https://www.youtube.com/watch?v=A9DABrpKXH8

qqq3333

5,593 posts

Posted by qqq3333 > 2022-02-01 20:02 | Report Abuse

osted by uncensored > Feb 1, 2022 1:28 PM | Report Abuse

Another dumb statement
=======

if tesla Apple as st.upid as u / serpenza, can make money or not?

qqq3333

5,593 posts

Posted by qqq3333 > 2022-02-01 20:03 | Report Abuse

y PureBULL ... > Feb 1, 2022 4:54 PM | Report Abuse

the FIGHT is on ON.,.
the wise man of SIN said it could take 3 decades to get EVEN.,.
========

at the end of 3 decades, American economy will be half of China.

qqq3333

5,593 posts

Posted by qqq3333 > 2022-02-01 20:06 | Report Abuse

uncensored > Feb 1, 2022 1:30 PM | Report Abuse

As People Starve, Corrupt Officials WASTE Food Donations
====

China sends food to Afgan, uSA sends what?

qqq3333

5,593 posts

Posted by qqq3333 > 2022-02-01 20:29 | Report Abuse

https://www.youtube.com/watch?v=knGYSrZCA5I


uncen...its evil to lie.

qqq3333

5,593 posts

Posted by qqq3333 > 2022-02-01 20:33 | Report Abuse

demonising others comes naturally to anglo saxons.


Confucianism teaches people to develop one self.

Evangelists demonise others who are different.

enning22

2,806 posts

Posted by enning22 > 2022-02-02 14:56 | Report Abuse

don't bullshit, the bible said :thou shalt not lie. Just tell the truth . Telling the truth ,cannot be taken as demonizing. QQ3 IS A LIAR, this is the fact .to quote Wittgenstein who said :the world is a totality of facts. NOT LIES.

enning22

2,806 posts

Posted by enning22 > 2022-02-02 15:00 | Report Abuse

真实中国: 中国政府债务危机到底有多严重?(字幕)/How Bad Is China's Debt Crisis/


https://www.youtube.com/watch?v=ootsiZWRjMY

enning22

2,806 posts

Posted by enning22 > 2022-02-02 15:32 | Report Abuse

一對平凡的夫妻從天堂跌落地獄!
https://www.youtube.com/watch?v=rWoJUrgSVOw

qqq3333

5,593 posts

Posted by qqq3333 > 2022-02-02 22:10 |

Post removed.Why?

qqq3333

5,593 posts

Posted by qqq3333 > 2022-02-02 22:12 | Report Abuse

The fact of the matter is western media lies, lies blatantly, lies all the time when it fits American interest

qqq3333

5,593 posts

Posted by qqq3333 > 2022-02-02 22:13 | Report Abuse

American media lies about Saddam, lies about Gaddafi and lies about China all the time.

uncensored

2,647 posts

Posted by uncensored > 2022-02-03 10:31 | Report Abuse

北京冬奥会成赔本买卖,花费千亿只为面子工程。多国运动员入住冬奥村收到万元大礼包,智能床黑科技私厨美食让网友质疑多少开销。官方公布仅花39亿被质疑造假,高速场馆等恐


Polishing The Turd 朽木可雕
130K subscribers

中国政府出手阔绰,为所有冬奥运动员准备了万元大礼包。不仅如此,奥运村豪华至极,有零重力的智能床,黑科技智能家居,更有私厨美食不重样。如此土豪的阵营让外国运动员纷纷替中国宣传,吃的好睡得着幸福感高。然而为了维系这种假象,工作人员不得不提前几个月闭环,并天天被捅鼻子来确保安全。中国政府努力香摆脱劳民伤财争面子的印象,对外宣称奥运会准备只花了39亿。然而,新修一个场馆就斥资2亿,更别提修高速、改地铁、人工造雪维护冰面等等支出。网上不支持办冬奥的回答已被删除,剩下的就是百姓热烈欢迎(单口相声嘚啵嘚之冬奥会花费)

https://www.youtube.com/watch?v=x9GDxP39fnw

uncensored

2,647 posts

Posted by uncensored > 2022-02-03 10:36 | Report Abuse

The Fastest Train Ever Built: The SCMaglev

In just a few short years, Japan’s Superconducting Maglev (SCMaglev) will become the world’s fastest train in operation. Traveling at near aircraft-like speeds of 503km per hour, the SCMaglev will eventually link Japan’s population centers of Tokyo and Osaka in just 67 Minutes.

The SCMaglev will operate on the Chuo Shinkansen, a new 438km intercity route connecting Tokyo to Osaka. The line will run right through a mountain range, requiring the vast majority of the route to run in tunnels. However, the Chuo Shinkansen will be more direct than the current Shinkansen high-speed rail route. The first section is expected to open in 2027 with the remaining connection to Osaka completed a decade later in 2037

The SCMaglev will be the world’s first superconducting maglev to enter service. To levitate trains off their guideway, electromagnets are cooled to extreme temperatures in order to take advantage of a phenomenon called superconductivity. The electromagnets on board the train interact with two sets of coils embedded inside a guideway, one to propel the train and the other levitation and guidance. The low electrical resistance in superconducting magnets allows SCMaglevs to consume 30% less energy than other high-speed maglev trains, like Germany’s Transrapid.

The technology behind SCMaglev is nearly 60 years in the making. But the Chuo Shinkansen is also one of the most expensive transport projects in history and an enormous bet on high-speed maglev, a technology that has yet to prove itself. Given the enormous costs and move away from proven high-speed rail technologies, some question whether building the world's fastest train really makes sense.

https://www.youtube.com/watch?v=-MmcQKE12Hg

qqq3333

5,593 posts

Posted by qqq3333 > 2022-02-03 10:50 | Report Abuse

sted by uncensored > Feb 3, 2022 10:36 AM | Report Abuse

The Fastest Train Ever Built: The SCMaglev
======

and after that? they need to sell to china if they want to make money........

uncensored

2,647 posts

Posted by uncensored > 2022-02-03 14:19 | Report Abuse

脸丢大了!这样过年!中共驻美使馆等地热闹非凡;麻烦大了!有不少运动选手正策划抵制冬奥开幕式;眼镜碎了!北京冬奥账务也造假 花销是中共官宣的十倍(《万维读报》

https://www.youtube.com/watch?v=UIqw4arWaK4

uncensored

2,647 posts

Posted by uncensored > 1 month ago | Report Abuse

China's High Speed Railway DEBT CRISIS: The Cause Of The Next Global Recession

https://www.youtube.com/watch?v=bbPBpcBZ_zE

Ben - Mr. Business

China's high speed railway system will unfortunately be the country's downfall, and will plunge global economies into deep recessions. China's high speed railways systems necessitated huge amounts of debt, to the tune of $850 billion. And with a decline in travel to-and-fro smaller provincial towns, small municipality governments in China are not able to bear the huge debt burden and looming interest payments.

Just over a decade ago, in 2009, China’s first long-distance high-speed rail (HSR) service covered the 968 kilometers between Wuhan and Guangzhou at an average speed of around 350 kilometers per hour. The feat was recognized as the Communist Party of China’s “debt-fueled” response to the global financial crisis. It was a sort of a “Railway Keynesianism,” where China re-engineered its railway infrastructure to drive the demand for concrete and steel and create millions of jobs. In the decade that followed, China’s HSR network spanned over a track length of 38,000 kilometers, the highest in the world. Bagging a share of 26 percent of the country’s total railway network, HSR today connects almost every major city in China, with travel time just a couple of hours more than air travel, but with the comfort that only trains can provide.

In the mad rush to gain the rich economic dividends that the HSR delivered on several profitable lines, especially the Beijing-Shanghai and Beijing-Guangzhou lines, provincial governments across the country have blindly tried to emulate the feat. However, most of such provincial construction has ignored the low- to zero- potential of the expensive routes to attract similar volumes of passenger traffic and are running at high idle capacity. Most new HSR lines in China have witnessed a sharp decline in their “transportation density”. Measured in passenger-kilometers, it is an indicator that projects the line’s operating efficiency in terms of annual average transport volume per kilometer. For example, while the 1,318-kilometer Beijing-Shanghai HSR corridor’s transportation density was 48 million passenger-kilometers in 2015 and continues to be high, the 1,776-kilometer Lanzhou-Urumqi line has only 2.3 million passenger-kilometers of transportation density. China’s overall transportation density of HSR was 17 million passenger-kilometers in 2015, while it was 34 million passenger-kilometers for Japan’s Shinkansen in the same year.

HSR construction costs nearly three times more than a conventional rail line. Given the absence of freight tariffs, its operational viability is hinged solely on passenger fares to cover the capital expenditure and operating costs. The craze for HSR has made China neglect the construction of conventional systems, adversely affecting the balance of the country’s logistics mix. As a result, rail has consistently trailed road and water freight transport for the past several years. This has led to growing investments in polluting freight road trucks and trailers, offsetting the environmental gains resulting from HSR. But for the China Rail Corporation (CRC) that owns the HSR network, that is the least of its worries.

In the past few years, mega borrowings by provincial governments to monetize its HSR lines have created a debt trap, which is now pinching the coffers of the state-owned CRC. CRC’s financial woes started nearly four years ago when more than 60 percent of the HSR operators each lost a minimum of US $100 million in 2018. That year, the least profitable operator in Chengdu reported net loss of US $1.8 billion. In the same year, transport economists in China had predicted an impending debt crisis for the country’s HSR that was dependent on “unsustainable government subsidies with many lines incapable of repaying the interest on their debt, let alone principal”, and were caught in a vicious cycle of “raising new debt to pay off old debt”. Consequently, since 2015, CRC’s interest payments have been significantly higher than its operating profits, shrinking its bottom line.

Four years later, in March 2021, China’s State Council, the highest organ of state power, has waved a red flag to curtail investments in HSR to prevent the slide into a deepening debt trap. The new guidelines have stopped the construction of new HSR corridors, primarily on underutilized routes that are operating at less than 80 percent of prescribed capacity. For China, which has seen the length of its high-speed railway network increase by 91 percent between 2015 and 2020, the new guidelines indicate that the country’s pursuit for speed has come at a high price.

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