Collapse of high-speed rail deal is ‘blow’ for Sino-US ties
Nevada firm’s reasons for ending agreement over LA to Vegas link unconvincing: Xinhua
The cancellation of a high-speed rail contract between a US company and a Chinese state-owned firm is a bad precedent that hampers bilateral cooperation in the field, according to state media.
The claim follows the move last week by Nevada’s XpressWest to abort the deal it had made with China Railway International to build a high-speed railway linking Las Vegas and Los Angeles. The deal had been made before President Xi Jinping’s state visit to the US in September last year.
Its collapse is the latest setback for Beijing in exporting its high-speed rail technology following problems with deals in Thailand, Laos and Venezuela.
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XpressWest’s claim the deal was terminated because of difficulties CRI had experienced in meeting deadlines and obtaining clearances was “unconvincing”, Xinhua said in a strongly worded commentary on Saturday that it ran in Chinese and English.
“[It] sounds ridiculous since both signatories of the contract are responsible for pushing forward the project with joint efforts,” the commentary said.
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Xinhua said CRI had been engaged in patient negotiations on all sorts of requirements with XpressWest since the deal was made and suggested the US company was at fault for the breakdown.