Merger boost to high-speed trains

China CNR Corp and CSR Corp, the country's two biggest train-makers are expected to merge into a multi-billion-dollar giant, capable of competing with global engineering behemoths, to better serve China's "going global" policy for its high-speed railways.

The "going global" policy will not only help China find new overseas pastures for the growth of its high-speed railway sector as the domestic market becomes saturated, but also expedite the strategic transformation of exports from "made-in-China" to "created in China". The merger, however, should also be used to develop a more rational "going global" policy.

By the end of 2013, high-speed trains covered more than 11,000 kilometers in China - that is, about half of the total distance covered by such trains across the world. Besides, another 12,000 km of high-speed railways is under construction. China, therefore, has to develop a sound "going global" policy to maintain the development momentum of its high-speed train technology.