Why US, China railway industries want collaboration fast-tracked
As a long-time leader in freight rail and urban transit, America still has a wealth of knowledge to offer China, US diplomat says
Rail-transport companies from China and the US remain committed to strengthening cooperation – including on projects in third-country markets – even as a trade rivalry between the two largest economies chugs along.
With the US being a long-time leader in freight rail and urban transit, and China having emerged as a global powerhouse in high-speed rail, the two sides could deepen cooperation in the rail-transport sector, said Everett Wakai, minister counsellor for commercial affairs at the US embassy in Beijing.
He spoke during the US-China Rail Transit Industry Roundtable on Friday at the China International Supply Chain Expo. Representatives from some US companies with ties to the rail sector were there. A key talking point was the potential for supply-chain cooperation.
Guan Jiaxin, vice-president of China Civil Engineering Construction Corporation, said the state-owned giant cooperates extensively with US companies when it comes to equipment.
“Major projects and markets led by our company are widely using construction machinery from Caterpillar and generators from Cummins,” Guan said during the round-table chat. Caterpillar and Cummins were two of the American firms in attendance.
“We look forward to exploring more cooperation opportunities with the US in overseas projects investment, building and operating, such as joint financing, design and consulting … in markets where US firms have a strong presence, such as Latin America, the Middle East, Africa and Europe,” he said.
01:00
Shanghai metro passengers evacuated after train malfunctions
For years, American makers of rail equipment have supplied China’s rail projects, both within the country and overseas – mainly those involved in the Belt and Road Initiative, including urban rail transit systems such as metros and conventional railway projects, company representatives said at the event.
Cui Yao, president of Wabtec (China), said revenue has grown in the past two decades from almost zero to an average of US$500 million per year, with US$300 million from sales in the Chinese market and US$200 million from products manufactured in China and exported to overseas markets. He described this as a “huge success”.