China to invest $106b in railways in 2011

Updated: 2011-01-05 10:29
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China will invest 700 billion yuan ($106 billion) in 2011 in building railways, the official People's Daily said on Wednesday, citing a meeting of the national railway work conference.

The money would be used for 70 new intercity projects, said the official newspaper of the ruling Communist Party of China.

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China will open a $33 billion high-speed rail link between Beijing and Shanghai in June, state media said on Tuesday, cutting the journey between the two cities in half to less than five hours.

A spending spree on railways was an important part of the government stimulus package launched in late 2008, but even as expansionary fiscal policy is wound down, the government has pledged to maintain hefty railway investment.

China's high-speed rail network has been developing rapidly over the past decade, reaching a total of 8,358 km, the world's longest.

China planned to invest 3 trillion to 4 trillion yuan in its high-speed rail network between 2011 and 2015, state media said last month.