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Railway reform misses its mark

chinadaily.com.cn | Updated: 2013-08-26 20:25

Reforms into China's railway system should begin immediately. Introducing competition into the market and a modern model of management is more important than raising public and market funds, says an article by the 21st Century Business Herald (excerpts below):

The State Council is looking into establishing a foundation for the construction of railways. It has indicated that private investors can only invest in railway projects without directly participating in the construction and operation of railways.

The establishment of the foundation will mean that reform in China's railway system will come later and slowly. The authorities should have made more sweeping progress in encouraging private investors to not only invest but also participate in the operation of railway projects.

Market reform into China's railway system should start from the operations standpoint. What the Chinese railway system lacks most is not capital but market competition and advanced management. Granting private investors their due rights in participating in the management and operation of the railway system is the first step in carrying out reform.

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