China-Nepal love affair

My article China-Nepal love affair appeared in the Edit Page of The Pioneer
 
Here is the link...

The deepening of ties between Kathmandu and Beijing is a serious setback for New Delhi. China scored one more goal but it’s difficult to say how far this story will continue

In politics, there is little difference between love and sycophancy — the case of Nepal is particularly telling. The social media was recently buzzing with news that some Tibetans had protested “against an utterly ridiculous demand from Nepal’s China sycophant politicians to ban the use of the khata, the traditional Tibetan white scarf, because it was hurting the feelings of the Chinese people.” Whether true or not, the sensitivity of “hurting the feelings of the Chinese people” is nowadays prevalent all over the world with Nepali politicians at the vanguard of the movement.
The “love” has increased further after Nepal President Bidhya Devi Bhandari spent nine days in China on a State visit. The invitation had come from Chinese President Xi Jinping himself. The first part of the visit coincided with the Second Belt and Road Forum in Beijing on April 27. President Bhandari held high-level meetings with the top Chinese leadership; they “exchanged substantive views on further strengthening and consolidating the ties of co-operative friendship and mutually beneficial partnership subsisting between the two countries,” according to an official communique.
More importantly, the Himalayan nation signed seven agreements with its giant northern neighbour; it included a protocol for an Agreement on Transit Transport; an accord on Cooperation and Mutual Administrative Assistance in Customs Matters and one on strengthening assistance and cooperation in the field of livelihood in the Northern Region of Nepal (ie the border with Tibet).
The ruling Nepal Communist Party chairman Pushpa Kamal Dahal, alias Prachanda, was quick to assert that a railway line will connect Kathmandu to the Tibet Autonomous Region (TAR) “within his lifetime.” Prachanda also affirmed that the railway will be later extended to Lumbini and Pokhara. It will be “a milestone in Nepal’s economic development and growth of the tourism sector”, he said.
The Government of Nepal had announced earlier that technical studies for the construction of railway lines linking Nepal with India and China have been completed. Bhandari specifically told the Parliament: “The Rasuwagadhi-Kathmandu railways will be started within two years.” Rasuwa is the border post town with Tibet (Kyirong). The line between Shigatse and Kyirong was much delayed due to the 2015 earthquake but now it is expected to be completed by 2023.
In May 2017, Beijing had already signed a Memorandum of Understanding with Kathmandu for roads, railways, ports and aviation as well as hydropower and energy projects, finance and tourism as part of the Belt and Road Initiative.
Xi assured Bhandari of China’s support to make a “Prosperous Nepal, Happy Nepali.” Before returning to Kathmandu, the Nepali President spent a day in Lhasa; the main purpose of the visit was re-emphasising Nepal’s commitment to the “One China” policy.
As the Japanese newspaper The Nikkei wrote, “The price is paid in diplomatic support for Beijing: The Nepalese consulate in Lhasa, the only foreign diplomatic mission in the Tibetan capital, recently reiterated unwavering support for Beijing’s claims to both Tibet and Taiwan.”
Incidentally, India had a full-fledged mission in Lhasa till 1952 and a Consulate-General till 1962. Today, Beijing adamantly refuses to reopen it, wanting India to go through Nepal authorities for trans-border trade. Examples abound to show the ongoing love story. Nepal has chosen a railway track gauge used by China as standard for its network; Kathmandu justifies the choice by the lower Chinese costs. The move is a serious setback for Delhi, which has failed to limit Beijing’s control over Nepal.
Minister for Physical Infrastructure and Transport Raghubir Mahaseth told Reuters that his Government will ask India to use the Chinese gauge: “Standard gauge is less expensive,” was the rationale.
Even Nepal’s borders with Tibet are looked after by Beijing. According to The Kathmandu Post, Kathmandu has permitted the China International Development Cooperation Agency (CIDCA) to provide development assistance in 15 northern districts of Nepal “to meet their developmental needs”; these districts share a common border with Tibet. The agency was set up in August 2018 in order to strengthen “the strategic planning and overall coordination of the Chinese aid to Nepal.”
One unsaid objective is to stop Tibetans fleeing their native land and taking refuge in India. It has been remarkably efficient. On May 12, the Nepal Intermodal Transport Development Board signed with Tibet Fuli Construction Group, a Chinese company, an agreement to construct the inland container depot in Timure in Rasuwa district. Built with Chinese aid, the project is expected to cost $20 million and is expected to be completed in 30 months. The Chinese Government will construct the dry port on five hectares of land provided by Nepal; a parking yard with a capacity to park 350 trucks and containers will be built.
In another news, more on the ridiculous side, according to The Kathmandu Post, Nepal’s leading English language newspaper, three journalists working for the Rastriya Samachar Samiti (RSS), Nepal’s national news agency, are being probed for disseminating a news item regarding the Dalai Lama.
What is their crime? The journalists “translated and disseminated” a wire report about the Lama’s return to Dharamsala on April 27, after he was discharged from a hospital in New Delhi. Minister for Communications and Information Technology Gokul Baskota confirmed to The Post that an investigation was on; Baskota said that the Tibet issue was sensitive for China and dissemination of a report regarding the Dalai Lama’s health by a state-run news agency was against Nepal’s commitment to “One-China policy.” Sycophancy of the first order!
Also in the tragi-comedy category, Pradip Yadav of the Samajbadi Party and Iqabal Miya of the Rastriya Janata Party, two Members of the Nepali Parliament, recently participated in an event organised by the Latvian Parliamentary Support Group for Tibet and the International Network of Parliamentarians for Tibet.
The convention in Riga was attended by Lobsang Sangay, president of the Central Tibetan Administration, along with other members of the Tibetan Parliament. Soon after, an official at the Parliament Secretariat pretended that “the two leaders said they were visiting Latvia for personal reasons and they did not disclose the details and purpose of their visit.” But finally, the Nepali parliamentarian “regretted” their participation and declared that they inadvertently attended the conference because of misinformation and it was a “mistake.”
China scored one more goal; but for how long the love story can continue is difficult to say. Buddha had said “everything is impermanent” …even China’s great “loan” friendship?

A Chinese Train to Lumbini?

One more instances of  China dictating  the foreign and defence policy of Nepal.
AsiaNews reports that China has asked Nepal to close its military training facilities in the former kingdom of Mustang due to the presence of too many foreigners.
The Nepali training centre which is located in Mustang, close to the border with Tibet, had been the headquarters of the Tibetan guerrilla against Communist China in the 1960s and early 1970s.
According to Asianews: "Beijing is concerned about the presence of officers and soldiers from other countries, and points out that the CIA provided aid to Khampa rebels from this district. Nepal appears ready to accommodate the Chinese, but its army offers alternative solution."
Seven foreign nations are currently trained in mountain warfare the military facilities in Mustang District. Beijing is deeply concerned about the presence of foreign personnel close to its border, pointing out that "several anti-Chinese actions began in the area".
The agency reports that the Nepali authorities appear inclined to listen to Beijing's demands "since China has become the country's most important economic and trading partners".
In 1990, the Nepali Army opened military its facilities to foreign troops and officers, including some from the United States, India and a few  European countries. The objective was to train the troops in a high risk mountainous area. Mustang was 'perfect' for unconventional war games.
But Beijing still remembers the Khampa fighters who from their bases in Mustang attacked the Chinese convoys in Tibet in the 1960s; at that time, the Tibetan freedom-fighters were financed by the Central Intelligence Agency.
Though the Nepali government in Kathmandu appears willing to bend once again to Beijing's demands, it is not the case of the Army.
Defence Minister Atma Ram Pandey 'understood' the Chinese request, he stated: "The presence of foreign troops in such a sensitive area may not be appropriate for our country's security," however, under Nepal's new Constitution, the Army may not to submit to the government's decision.
Army spokesman Jagadis Chandra Pokharel said: "We are aware of the Nepali government's concern and of the strategic importance of the training centre in the area," adding: "We have requested our government not to stop the training but rather monitor the activities of foreigners to ensure that nothing is done against the security of the country."
The pressure of Beijing is bound to mount in the months to come while China will continue to be very 'generous' with Nepal.

Asoka Pillar at Lumbini, Buddha's birthplace

A railway line to Lumbini?
According to the Nepali publication,The Republica, Luo Sang Jiang Cun (Chinese name of Lobsang Gyaltsen), chairman of the Tibet Autonomous Region (TAR) assured Nepali officials visiting Tibet that China would expand a rail service to Nepal, once the train reaches the southern city of Shigatse.
Gyaltsen made the commitment during a meeting with the visiting Nepali Chief Secretary, Leela Mani Poudel in Lhasa.
The Nepali delegation had come to participate in the '14th Nepal-China´s Tibet Economic and Trade Fair - 2013' in Shigatse.
The Nepali delegation requested China's help for the construction of a line from Kathmandu to Lumbini, the birthplace of the Buddha near the Indian border.
Quoting Lobsang Gyaltsen, Hari Basyal, the Nepalese Consul General in Lhasa elaborated: "Feasibility study is underway for expanding rail service between Nepal and Tibet. We will immediately commence the process for implementing the plan once railway line reaches Shigatse from Beijing."
Gyaltsen expressed China's commitment "to extend a meaningful support to Nepal for achieving the common goal of socio-economic development."
Chief secretary Poudel asked the Chinese government's help to develop trade infrastructures which are instrumental in promoting bilateral trade.
Later Poudel and Ding Yexian, the executive vice-chairman of TAR inaugurated the Economic and Trade Fair 2013.
Incidentally, Ding Yexian is a Chinese cadre born and educated in Tibet. His father served in the 18th Army in the fifties and later settled in Tibet.
One could say that Ding is Han Tibetan or a Tibetan Han.
Interesting case!
For Nepal, there is no free meal, Poudel had to reiterate Nepal's policy of not allowing anti-China activities in its soil.
What could Poudel do?
He had to request the Chinese officials to increase the economic cooperation in the field of infrastructure development such as dry port facilities and expansion of road and railway networks as well as in crucial sectors of economy such as construction, energy, manufacturing, tourism and agriculture in Nepal.
Ding Yexian said that bilateral trade fairs would be an important forum for enhancing trade and commercial interaction between entrepreneurs of both the countries. He expressed China's willingness to help Nepal for its socio-economic development and emphasized the need for joint efforts to fully operationalize the agreed border points between Nepal and China.
According to the organizers, more than 200 representatives from 70 business enterprises, 36 observer business enterprises, and representatives of Trade and Export Promotion Center are participating from Nepal in the biennial fair. Similarly, around 200 participants from Tibet are showcasing their products in the five-day event.
In the present circumstances, it is doubtful if the training camp in Mustang will remain open for long.
But more worrying for India is a Chinese railway line to Lumbini, a few kilometers from the Indian border.

Tibet autonomy and Chinese tourists

This article in the South China Morning Post raises the autonomy issue.
What means a "high degree of autonomy"?
Is it what Generalissimo Chiang Kai-Shek's enunciated in his speech to the Kuomintang Executive Yuan on August 24, 1945?
Michael C. Davis says that Beijing argues that asking for a 'high degree of autonomy' would be the equivalent of 'independence'. 
It is not automatically true, there are in Europe for example, several genuine cases of 'regional autonomy' which work.
Davis has a point when he affirms: "No explanation was given why the same guarantee of a 'high degree of autonomy' for Hong Kong is not deemed independence."
The answer is perhaps that Beijing is aware that Tibet was independent in the past, and though China will never admit it, that makes Tibet different from Hong Kong.
This issue of 'autonomy' brings more questions.
The Dharamsala's Memorandum of Genuine Autonomy for the Tibetan People asks for genuine autonomy in fields such language, culture, religion, environmental protection, education, and natural resources.
I am not sure in which category 'tourism' comes, but the transformation of the Tibetan plateau into a mega museum, is certainly a subject that an 'autonomous' government would like to control.
Yesterday, the China Securities Journal reported: "Road construction in China's central and western regions will speed up following a central government vow to boost the expansion of the railway sector."
According to this source, "In Tibet, authorities will spend 200 billion yuan ($32.3 billion) to build a road network centered around the regional capital of Lhasa over the next five to eight years, as well as extend the combined length of the region's highways to over 110,000 km. The construction projects will be funded using multiple channels, including fiscal investment and corporate bonds."
Now, will this type of development comes under the Central government or an 'autonomous local government'?
The Chinese answer is clear: the Centre.
And who will decide of the quantum of Chinese tourists allowed to visit Lhasa every year (15 millions next year). 
It is clear that these road development's plans have for objective to cater to these millions of Han tourists.
Can it be stopped under a 'genuine autonomy' scheme?
Once again, one can doubt that Beijing will renounce this god-send opportunity to control Tibet.
The Journal quoted earlier says: "The central government vowed last week to speed up reforms concerning investment and financing in the railway sector, including establishing a railway development fund using government investment and social capital."
And let us not forget that these roads and railway lines can also be used for military purpose, if and when required.
Hong Kong does not have all these problems.

Tibetan autonomy poses questions for Hong Kong
South China Morning Post
30 July, 2013
Michael C. Davis
Beijing's guarantees of self-rule have not proved reliable for the unhappy Himalayan region
Following the 120th Tibetan self-immolation in protest at Beijing's alleged autonomy policies, Hong Kong people - themselves the subject of autonomy guarantees - may wonder why ordinary Tibetans are so dissatisfied.
On the face of it, Beijing and the exiled Tibetan leaders should be able to find a solution. In the 1951 Seventeen-Point Agreement, sometimes considered a precursor to the Hong Kong agreement, Beijing promised Tibetans could carry on under their traditional self-rule - with Chinese sovereignty.
But the excesses of China's early communist period eventually led to the collapse of the agreement and the 1959 flight of the Dalai Lama.
China then proclaimed the system of "minority nationality autonomy". Tibet was divided into 13 autonomous areas: the Tibetan autonomous region and 12 adjoining areas in neighbouring provinces.
The problems lie in the failure to fully implement the national minority autonomy laws and the use of repressive policies to contain resistance.
To address these problems, the Dalai Lama long ago conceded claims for independence in favour of autonomy under his "middle way" approach. After the bloodshed of the 2008 protest, he was invited to elaborate on his proposal under the People's Republic of China constitution, which he did in his 2008 Memorandum of Genuine Autonomy for the Tibetan People. It urges genuine autonomy in areas including self-government, language, culture, religion, environmental protection, education, and natural resources. This largely tracks China's existing national minority commitments, but also seeks control over immigration and public security, similar to the Hong Kong model, and the uniting of all Tibetan areas.
Responding dismissively, Beijing argued that this was the equivalent of asking for a "high degree of autonomy" and that would be the equivalent of "independence". No explanation was given why the same guarantee of a "high degree of autonomy" for Hong Kong is not deemed independence. The seemingly shared commitment to autonomy in Tibet has been undermined by a lack of trust. Beijing worries that "genuine autonomy" is just the first step on the road to real independence. The Tibetan side, after their tragic experience to date, is surely doubtful about conceding any ground without iron-clad guarantees.
Beijing has also pressed the Dalai Lama to concede to its widely disputed claim to have always historically ruled Tibet. The Dalai Lama will only acknowledge an historical imperial religious relationship with China. For him, autonomy is merely the only option realistically available under difficult circumstances. Even under Chinese historical accounts, Tibet would have enjoyed genuine autonomy throughout the imperial period, when indirect rule of peripheral areas was the norm.
A careful look at the Tibetan memorandum reveals that it not only largely tracks China's own proclaimed policies, but also international standards reflected in the 2007 United Nations Declaration on the Rights of Indigenous Peoples, which aims to give indigenous peoples self-governance and cultural rights.
China voted for the declaration, but quickly proclaimed there were no indigenous peoples in China.
China's long-term interests might be better served by embracing international standards. This would require less interference in Tibet, something Beijing has also been reluctant to do in Hong Kong. Agreement with the Dalai Lama may also secure Tibetan and international support.

Professor Michael Davis, of the University of Hong Kong, is a constitutional law specialist

Stabilizing the borders

Xinhua reported today that Zhou Yongkang, member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) addressed a national conference in Beijing on the theme of maintaining social stability .
Zhou Yongkang called for more concrete methods to ensure social stability before the upcoming 18th National Congress of the CPC.
He said that maintaining stability was "the highest priority for the Party and government organizations at all levels" and he urged the government "to coordinate the domestic and international situations". 
He mentioned the conflict-prone areas: "Campaigns against separatism and terrorism should be deepened and any sabotage attempts by domestic and overseas groups must be dealt with in accordance with laws and regulations so as to ensure the stability in key regions such as Beijing, Xinjiang and Tibet."
Radio Free Asia (RFA) had also reported about the 'stability drive' ahead of the Party Congress at the end of the year in China. RFA says:

China announced in March a rise of 11.5 percent in its domestic security budget to 701 billion yuan (U.S. $111 billion), with premier Wen Jiabao pledging a full modernization and expansion of the country's main riot-quelling force, the People's Armed Police.  Official documents leaked to the Chinese media have revealed that officials are typically ordered to step up intelligence activities among the local population and to focus in particular on "hostile foreign forces" who might try to collaborate with local activists to organize "subversive" gatherings during major events. 

But more interesting is the 'stabilization' of the Middle Kingdom's border areas.
For the purpose, the railway to Lhasa (and soon Shigatse) will be extended in three directions to the Indian borders: one line to Chumbi Valley, close to Sikkim; one line to Nyingtri (Chinese Nyingchi), north of Arunachal Pradesh and finally a line towards Xinjiang through the disputed Aksai Chin. 
It will be one way for China to reassert Beijing's claim on the high plateau of J&K State; it also be a link between the conflict-prone Tibet and Xinjiang  provinces.
A long way since, the PLA started building its first road in Tibet.
Xinhua News Agency reported on 29 November 1954: “The two large armies of road builders from the eastern and western section of the Sikang-Tibet Highway joined hands on November 27. Sikang-Tibet Highway from Ya-an [capital of the now defunct province of Sikang] to Lhasa is now basically completed.” 
The communiqué further mentions that “gang builders and workers, including about 20,000 Tibetans, covered over 31,000 li on foot in the summer of 1953 and began construction of the 328 km of highway eastwards from Lhasa.”
Three weeks later, another report stated: “The Tsinghai-Tibet Highway is now open to traffic. The first vehicles reached Lhasa on the afternoon of December 15. Over 2000 km long, the highway passes through Mongol, Tibetan, Hui and Khazak brother nationality districts, traverses 15 large mountains… crosses 25 rivers, grasslands and basins at an average elevation of over 4,000 meters above sea level.”

The objective was already to 'stabilize the borders'.

China reaches at India’s doorsteps with strategic rails
Source: http://www.defence.pk/forums/
Even as Indian defence mandarins are tethering to give a go ahead to the construction of strategic railway lines at the Sino-Indian border, the dragon is working at a feverish pitch to get railway lines passing through Aksai Chin and lending right at India’s doorsteps.
When the Indian government is deliberating on the idea of who will finance the construction of 14 strategic railway lines in the inhospitable and inaccessible regions of Ladakh and North-eastern, China has started work on extending its railway line from Lhasa – the capital city of Tibet – to cities near the Sino-Indian border at a huge economic cost. Slicing through the geographical barriers, the railway line will cut the time taken for Chinese troop mobilization by half.
As per the intelligence gathered by the Indian armed forces the two lines connecting Lhasa to Yatung (a major trading town just about 30 kms from Sino-Indian border) and to Linzhi (about 70-80 kms from the border) will be complete by 2017. Yatung is situated at the mouth of the Chumbi valley and is connected to the Indian state of Sikkim via the Nathula pass.
“Work on two other proposed railway lines from Lhasa to Khasa near Nepal border and Kashghar in Aksai Chin will begin soon,” sources told The Sunday Standard. According to expert, this development will further tilt the strategic advantage in China’s favour as it gets cozy with the communist government of the Himalayan Kingdom of Nepal and strengthen its foothold in Aksai Chin, a territory claimed by India as its own. The rail link to Khasa is likely to be aligned with the Friendship Highway from Shigatse to Khasa, and further till Kathmandu.
On the Indian side, the Finance Ministry is struggling to shell out Rs. 80,000 crore to construct six high priority strategic lines bordering China.
Coupled with this, China has been sprucing its Western, Eastern and Central highways. The 1900 km long Western Highway goes from Lhasa to Aksai Chin after running parallel to Nepal Border. The Central Highway from Golmud to Lhasa and the Eastern Highway from Kunming to Lhasa is also being upgraded to make the mobilization faster.
“The completion of rail and road networks will help Chinese in using a combination of air-road and rail network to transport troops and material from the interiors to the border areas at a faster pace, raising concerns for India,” sources added.
While the red tape is stalling the growth of infrastructure on Indian side, the Army has taken possible measures to counter the strategic leverage gained by China. “For us mobilizing troops at a faster pace will be difficult owing to the sloppy infrastructure. Keeping this in view we are bolstering our presence in the forward areas by taking our men towards the border,” said Indian Army officials.

Investing in railway

The argument that these new railways lines will be "a strategic investment that will link markets across the country", is true, but there is more.
As I mentioned in an earlier post, not only it will open new markets, but in many places, (particularly in Tibet and Xinjiang), it will facilitate the transfer of  millions of Han migrants in these 'minorities' areas. 
It will also help the 'freight', in other words to take minerals from these areas back to the mainland and finally and perhaps more importantly, it will allow quick transpiration of troops in case of 'ethnic' or 'external' conflicts.
Taking all these factors into account, the investment may not be wasted. 


China's railway boom hurtles into the red
Reuters
By Michael Martina and Xin Zhou
BEIJING (Reuters) - The numbers for China's relentless push for a high-speed rail network are impressive -- in terms of debt, not passengers.
The argument in support of the vast project -- with many lines connecting to more sparsely populated inland regions -- is that they are a strategic investment that will link markets across the country.
Detractors counter that while high-speed rail may suit the densely populated eastern corridor, investment is wasted on inland projects which are better served, and more cheaply, by short flights and slow trains.
"It will be a liability, not an asset, for China," complained Zhao Jian, a professor with Beijing Jiaotong University, a vocal opponent of the ambitious plans.
The Ministry of Railways, already deep in debt, is undeterred and expects to splurge another 2.8 trillion yuan between now and 2015 on the project.
State backing for the 45,000 km (27,962 miles) of high-speed track the ministry has pledged to lay by the end of 2015 means it can almost certainly find the money.
But outsiders, too, are weighing into the debate.
U.S. economist Nouriel Roubini spoke to reporters earlier this month in Singapore of his trip on the Shanghai-Hangzhou high-speed train, which connects the cities in 40 minutes.
" is half-empty and the brand new station is three-quarters empty. Parallel to that train line, there is also a new highway that looked three-quarters empty. Next to the train station is also the new local airport of Shanghai and you can fly to Hangzhou," Roubini said.
"There is a no rationale for a country at that economic level to have not just duplication but triplication of those infrastructure projects. The level of it and the cost of it is massive, and a third of it will generate zero cash," he said.
Even the landmark Beijing-Shanghai line, set to launch by the end of the month, faces uncertain profit prospects and many analysts are saying the investment in rail is too much too soon.
At a cost of 220.9 billion yuan, the 1,318-km line linking the capital and financial hub will cost one-way economy class passengers 555 yuan to start, just under the cheapest discounted air ticket.
Speeding passengers through the countryside at 300 kph, the new line will serve as the government's new model for passenger transport.
Professor Zhao cited the line from eastern Henan province's capital Zhengzhou to the Shaanxi city of Xi'an as the perfect example of a white elephant rail project.
"It is basically empty," he said. In the first six months after its launch in February 2010, the railway reported 1.98 million passengers. It was designed for 37 million a year.

NO SLOW DOWN
"We will not slow down the pace, and there will be no cut in investments," Vice Minister of Railways Hu Yadong told a news conference last week.
The ministry's 58.24 percent asset-liability ratio -- as of March -- is no deterrent, with rail development closely linked to national development in the world's most populous country and second biggest economy.
Wang Fang, a senior project officer who focuses on China's railways at the Asian Development Bank office in Beijing, said the MOR should not worry about its debt ratio.
"A debt ratio of 60 percent itself is not worrisome. Many expressways in China have a debt ratio of 70 percent of more. What should be worrying is profitability performance," she said.
JP Morgan rail sector analyst Karen Li said a 4-7 year post-construction profitability target hinted at by MOR's chief economist Yu Bangli was not unrealistic for the line connecting Beijing and Shanghai.
But other lines may be less lucky.
"Typically for infrastructure, healthy building should outpace demand by two to three years. For high-speed rail, at this point, we may be looking at 5 to 10 years ahead of demand, in my view," Li told Reuters from Hong Kong.
"I think much of the railway investment in the past three to five years should have been put into the freight rail side," she said, helping to lower logistics costs which are much higher than in developed countries.

KNOCK-ON BENEFITS
Some experts say the high-speed lines will have wider knock-on benefits for the freight sector and the economy.
New high-speed rails, in theory, will take passenger traffic off old tracks and open them up to freight. With per capita kilometres of rail low compared to developed countries, advocates say if it is going to build a new rail network anyway, China might as well build one that is first class.
Wang Shuang, an analyst with the Industrial Securities in Shanghai, estimates MOR operating losses in 2011 of 96.6 billion yuan, but said rail spending would still boost the economy.
"In terms of a whole region, railways will promote investment along the line in a noticeable way," Wang said, noting that every dollar spent on railway could generate three dollars in investment.
Even before the official launch of the Beijing-Shanghai line, Yu Shouhai, an investment promotion official at Taian, one of the 24 stations along the line, sees great promise. Projects, including a tourist spot called "Tropical Gardens", were launched ahead of an anticipated wave of visitors.
"The new railway line has tremendous meaning for us," Yu said. "Since the announcement of the railway blueprint, investors have been speeding up in putting money down here."
(Editing by Jonathan Thatcher)

Beware of China’s new roads

My article Beware of China’s new roads on the new railway lines in China appeared in The Pioneer.

Apart from the increasing presence of PLA troops in PoK, India must take cognizance of the fact that China is fast spinning a web of roads and railway networks in the region that effectively traps India within its own borders and poses a serious security threat. India has ignored similar Chinese acts of aggression in the past and has paid heavily for it. New Delhi must not repeat its mistake.

More a Political Thing

When the Chinese troops entered Tibet in 1951, the first task assigned to the People's Liberation Army was to build a network of roads. 
This did not prove enough to 'liberate' Tibet whose populations remain resentful, even after 60 years.
A few years ago, the Chinese government decided to continue on the 'development' track. As the result, in 2006, Beijing opened the first railway line to Lhasa (more than 8 millions visitors are expected on the Roof of the World in 2011, using the train).
As the Central Government constructed the road between its 'provinces' of Tibet and Xinjiang in the 1950's, Beijing has begun to lay down a railway line between the two nationalities' areas.

It will help, among other things, to carry troops, in case it is needed, from Lhasa in Tibet to Urumqi in Xinjiang (or vice-versa) in a shorter time.
As I mentioned in an earlier posting, Beijing has decided to invest huge amounts of money to implement some 'social management' schemes for the masses; in other words, to bring 'harmony' and control the populations in the Mainland and in 'minorities' areas.  The 2011 budget for this scheme is 95.18 billion dollars, 3.55 billions higher than the PLA's allocation.
Though the cost of the railway Tibet-Xinjiang is not included in this budget, the fast train will go a long way to help the 'management' of these provinces.
As a China Academy of Railway Sciences official told Xinhua: "it will be difficult to make money from building such a line. It's more of a political thing, he said. It's more about national defense and ethnic unity." No further comment is required!

China takes fast rail ambition to new heights
Xinhua
2011-04-10
Deep in the Qilian Mountains in northwest China, early spring is marked with heavy snow and freezing temperatures. In this desolate place in Qinghai Province, at an altitude of 3,700 meters above sea level, migrant worker Li Bingui is seldom separated from his jackhammer, which moves his whole body as he works to break apart bedrock.
Li, along with more than 1,800 other workers, are at the mercy of a ruthless environment as they construct the world's highest high-speed railway.

HIGHER, TOUGHER
Li and others are carving out a 9,490-meter tunnel through the rugged mountain range, one of the most difficult parts of the building the line to link Lanzhou, capital of Gansu Province, with Urumqi, capital of northwest China's Xinjiang Uygur Autonomous Region.
The 1,776-kilometer second line of Lanxin Railway runs across Gansu and Qinghai provinces to Xinjiang, traversing the wind ravaged Gobi Desert.
Started in late 2009 and scheduled to be completed in 2015, the line is designed for trains traveling at up to 300 kilometers per hour, much faster than the current 120 kilometers per hour on the existing line, cutting travel time between Lanzhou and Urumqi to about six hours.
Ren Shaoqiang, chief engineer with the China Railway 20th Group Co., Ltd., which is in charge of the construction, told Xinhua that compared with the Qinghai-Tibet plateau railway and the existing line between Lanzhou and Urumqi, construction of this fast rail line is more challenging.
Take the tunnel project for example. There's no precedent to draw from, said Ren, who also played a significant role in building the Qinghai-Tibet Railway, the highest rail link in the world.
We have to make innovations, just like when we worked on the Fenghuoshan Tunnel of the Qinghai-Tibet Railway.
In the past year or so, engineers have worked with researchers from several universities in China on natural disaster forecasting, water discharge, measuring of wall rock transfiguration, among other things.
Other worries are more immediately pressing, such as the lack of oxygen in the air because of the high altitude, which poses a threat to the health of workers.
Zhang Hong, a director at the site, said natural oxygen content in the tunnel is only around 65 percent of that in low-lying areas.
Besides, from October to June, the mountain is frequently covered by ice and snow, Zhang added.
Construction worker Wu Xuelin said working on the tunnel project is far more stressful than working on similar projects in coastal areas like in Shandong Province or Shanghai.
I could not adapt well at the beginning, suffering headaches, nausea, and had difficulty sleeping, Wu said.
The company has stepped up safety measures to better protect workers, providing them with oxygen tanks and setting up rooms at cave exits for workers to inhale oxygen. It has also built oxygen-generating stations to provide more oxygen in the tunnel.
Live video surveillance and alarm systems have also been set up.
We only need to switch on a computer and log in to our accounts to know what's happening in the tunnel, even if we are thousands of kilometers away, Ren said. We can also remotely control operations.
Despite all these measures, Guo Yuhong, Secretary of the Communist Party of China and Union Committee for the Qilian Mountains Tunnel, said, Under such conditions, nobody can stand a high workload for a long time.
Guo, 44, has been stationed at the construction site since last year, and his hair has turned gray during that period of time.

MORE EXPENSIVE, MORE CONTROVERSIAL
According to Ren, building the line through difficult terrain like in the Qilian Mountain area requires twice as much investment compared with similar high-speed line construction on low-level flat areas.
Wages for construction workers is also double, he said.
For regular high-speed rail lines with a designed speed of 350 kilometers an hour, construction costs can reach 100 million yuan (about 15.15 million U.S.dollars) per km, much higher than lines designed for allowing trains to travel at a speed of 200 kilometers per hour.
Lanxin Railway has a planned investment of more than 140 billion yuan in total, but the actual figure is yet to be revealed.
The project, designed as a passenger route, will make way for the existing Lanxin Railway to be used exclusively for freight.
Analysts are divided over whether the benefits outweigh the costs of building high-speed lines in the ecologically fragile western regions.
Some say higher construction costs will only push up ticket prices and, like other high-speed lines in coastal areas, might not be much favored by many passengers. Others take it as an effective means to develop the economy in the generally under-developed regions.
A senior researcher with the China Academy of Railway Sciences told Xinhua, on condition of anonymity, that it will be difficult to make money from building such a line. It's more of a political thing, he said. It's more about national defense and ethnic unity.
The new railway is expected to facilitate transport of energy resources from the vast desolate northwest to other regions of the country.
Take Xinjiang for example rich in oil, coal and natural gas reserves, the region is aiming to supply more of its resources to other areas in the coming five years.
Wang Tieshan, a PhD of economics at the Xi'an Jiaotong University, said high-speed railways are vital for closer links between cities in the west regions as they are usually far apart.
So far, several provinces and regions in the west, including Shaanxi Province in the northwest and Guizhou in the southwest, have laid out ambitious plans for high-speed rail construction over the next five years.
Currently, high-speed rail has linked Xi'an, capital of Shaanxi, with Zhengzhou, capital of central China's Henan Province. More such links between Xi'an and other west cities like Chengdu and Yinchuan are either under construction or in the planning.
At the political sessions held in early March, high-speed rail remained one of the hottest topics among national legislators and political advisors, particularly as the high-growth industry was shrouded in uncertainties following the sacking of former railway minister Liu Zhijun in February on suspicion of graft.
Sheng Guangzu, the new railway minister, said Liu's case was only an individual one and that China would continue to develop the industry in the coming years in accordance with the country's mid-and-long-term railway network plan.
Under China's economic master plan unveiled in March for the next five years, China aims to have more than 16,000 kilometers of high-speed railway by 2015. Currently, more than 8,000 kilometers of high-speed rail line are in operation, already the most in the world.
As to concerns about the massive debts caused by high construction costs and low occupancy rate due to expensive ticket prices, Sheng said the debt ratio of around 56 percent is normal and controllable.
Sheng also has pledged strict and high quality standards on the construction of high-speed rails to ensure safety.
However, legislators and political advisors have called for a restraint on the expansion of the high-speed rail network to avoid over-investment driven by an irrational pursuit for speed.
Political advisor Feng Pei'en suggested that new railway construction plans be made public to solicit feedback and that decisions be made based on objective analysis of passenger flows by air, rail and road.
Zhuang Wei, another political advisor, argued that China should focus on building railways with speeds at around 250 kilometers per hour because those at higher than 300 kilometers an hour are not only much more expensive but also tend to produce more pollution.