Sino-Germany maglev talk stalled (Shanghai Daily) Updated: 2006-06-08 16:20 Sino-Germany negotiations on the construction of a
new maglev line connecting Shanghai and Hangzhou, in Zhejiang Province, came to
a deadlock as both sides were unable to reconcile the contractual
details, the Beijing-based 21st Century Business Herald reported
today.
An insider and expert from Tongji University said that the German side
preferred to sell China a one-time usage right for the maglev technology and
wanted the Chinese companies to then build the line themselves, according to
newspaper.
The Chinese side, however, wanted to set up a joint venture with the German
companies to build the line and specified that 90 percent of the equipment and
components would be made in China.
"This will dramatically boost our local employment and economy, but for now,
the usage rights are too expensive" added the expert.
Talks came to a standstill when the German side disputed the need for a joint
venture conglomerate, to fully share the maglev technological rights.
The central government approved the feasibility study for the maglev line in
March, expecting that the new line would improve transport within the Yangtze
River Delta region.
Chai Xianlong, vice chief from the Development Planning Research Institution
of Zhejiang Province, said the maglev project was still in the feasibility phase
and the construction of the line was not expected to be complete by 2010, which
was previously reported. Chai has been involved in the research and development
process of the Shanghai-Hangzhou maglev line since 1996.
"China wants to build a new maglev line mainly to boost its scientific and
research capabilities, but we don't have to build it," Chai said. "There is no
time line for the project."
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