China’s railway investment hits highest level since 2013 as infrastructure focus shifts to border regions, defence

China’s railway investment in the first quarter hit its highest level since 2013 amid government efforts to boost the economy and expand infrastructure in Western border regions that are of ever-increasing security and economic importance.

Total fixed-asset railway investment in the first three months of the year hit 113.55 billion yuan (US$16.5 billion), up by 6.6 per cent from the same period last year, China State Railway Group confirmed on Sunday.

It is the highest first-quarter investment in the past decade, although the start of the year is traditionally a slow season for railway construction.

For later this year, the state railway operator will focus on the construction of projects in border areas, including in the autonomous regions of Xinjiang and Tibet, as well as along the new Western land-sea corridor – a trade and logistics passage bridging Western China with the Association of Southeast Asian Nations – it said.

The increase is part of China’s fiscal policies to support a post-coronavirus recovery, as well as efforts to stabilise foreign trade and meet defence demands amid China’s worsening ties with the West and some of its neighbouring countries, analysts said.

“Railway projects are key infrastructure projects controlled by the state and the pacing-up in implementation represents fiscal support for economic growth,” said Shao Yu, chief economist at Orient Securities.