China - 'high-Speed Rail Network Development Set To Slow'

[interestrateripoff]

http://europe.chinadaily.com.cn/china/2011-05/04/content_12440910.htm

China may cut its investment in railway infrastructure this year by more than 200 billion yuan ($31 billion) following an earlier decision to slow down the operating speed of its high-speed trains, the Economic Observer reported on Tuesday.

The Beijing-based newspaper claimed the Ministry of Railways had organized meetings in recent days and had invited experts and officials to discuss whether it was still necessary to begin work on railway projects that had not yet started.

An anonymous source was quoted as saying the discussions ended in agreement that this year's investment in the construction of railway infrastructure would be slashed by 200 million yuan from the planned 700 billion.

The news report went on to say that some high-speed railway projects would be scrapped, but it said the ministry was awaiting the experts' opinions on which ones could be cut without affecting the network's efficiency.

A publicity official with the Ministry of Railways said on Tuesday that the amount of money mentioned in the report was "inaccurate" but declined to elaborate and would not confirm or deny whether total investment would be cut this year.

Has China decided the links being built aren't necessary? Considering the obsession with exponential GDP growth it seems odd they are wanting to cut a infrastructure project.