The cold welcome to the bullet train service reveals the problem of setting prices without soliciting public opinion, says a signed article in Dazhong Daily. An excerpt follows:

Tickets for the first bullet train services went on sale April 14, but in some cities sales have been sluggish. The Ministry of Railways spokesman explained that it is off-season when people tend not to buy tickets in advance.

But the major reason for the cold welcome is the high price. There had not been a necessary legal process for the pricing of the tickets.

The bullet trains promise to reduce travel time on an average of two hours between major cities with speeds of 200 to 250 kilometers per hour. But fares are 50 percent higher than the current express trains because of "greater costs, faster speeds and better service".

But most travelers who have to pay their own way and have modest incomes will probably choose the slower, cheaper trains. So without the base of public demand, the new bullet train service may possibly be a case of using public resources to provide high-price service to a small group of high-income people.

As to the pricing process, there was a lack of normal hearings on the issue which is in the public interest.

According to Article 23 of the Price Law, the hearing system shall be established under the chairmanship of the relevant government departments to solicit views of consumers, operators and those concerned in determining the government-guided prices and government-set prices for public utilities, non-profit services and commodities under natural monopoly.

But in pricing the bullet train fares, the Ministry of Railways did not arrange for a hearing, nor did it publicize the operating costs of the services or explain the reasons for setting the price, let alone assess travelers' ability to pay or solicit public opinion. That is why consumers are rejecting the trains.

(China Daily 04/18/2007 page10)