Benefits of high-speed railway far outweigh CRC's rising debt

THE FINANCIAL REPORT the China Railway Corporation issued last week shows its high-speed-railway-related debt soared from 1.89 trillion yuan ($281 billion) in 2010 to 5.28 trillion yuan at the end of September 2018. Beijing Youth Daily comments:

Thanks to the fast expansion of the railway network and the huge investment the CRC has made, many observers are worried that the mounting high-speed-railway-related debt could evolve into a "gray rhino" affecting China's economic growth. The CRC's latest financial report shows the worry is not totally unfounded.

Except for a few lines that have broken even or are making profits, the high-speed railway is running on deficits. And the profit the CRC makes from the high-speed railway is not enough to repay the mounting interest for its fast ballooning debt.