News that doesn't receive the necessary attention.

Friday, June 10, 2016

High speed trains used in the US must be made here per federal gov. A US company nevertheless made a deal in 2015 with Communist China to build a high speed rail line between So. Calif. and Las Vegas. The US company has now canceled the deal citing various difficulties-Wall St. Journal

6/9/16, "U.S. Throws China Off High-Speed Rail Project," Wall St. Journal,Te-Ping Chen, Beijing

"China state media says XpressWest’s move is irresponsible."

"A high-speed rail agreement touted as a symbol of U.S.-China cooperation has fallen apart less than a year after it was signed. XpressWest, a private U.S. company, on Thursday said a venture with China Railway International to build a high-speed rail line to link Southern California with Las Vegas won’t proceed.

In a statement, the U.S. company said it terminated the partnership because of “difficulties associated with timely performance” and its Chinese partner’s challenges in obtaining necessary approvals to proceed with the project.

China Railway International is a specially formed company that includes state-owned China Railway Group Ltd., CRRC Corp. and China State Construction Engineering Corp. The group and its members couldn’t be reached for comment Thursday, which was a public holiday in China.

Xinhua, the government’s news agency, cited a China Railway International manager as saying the U.S. company’s move was “precipitate” and “irresponsible” and the Chinese side would seek to defend its interests.

The deal between XpressWest and China Railway International had been announced by Chinese government authorities last September, ahead of a formal visit by President Xi Jinping to the U.S. At the time, the deal was hailed by Chinese officials for helping China secure a greater foothold in the U.S. market.

Had it materialized, the project would have been the first high-speed rail system to be built in the U.S. by Chinese companies.

XpressWest said the company would continue pursuing other partnerships and options to move ahead with the rail link. The project’s biggest hurdle was a federal requirement that high-speed trains be manufactured in the U.S., Chief Executive Tony Marnell said in the statement. He urged the government to adopt a “more flexible and realistic approach to support high-speed rail.”"

"Write to Te-Ping Chen at te-ping.chen@wsj.com"

===============

Comment: A high speed rail line from So. Calif. to Las Vegas would go broke due to lack of ridership. It's a terrible idea to begin with. In any case, per the article, the US requires high speed trains for use in the US be made here. Why not let a US company "secure a greater foothold" in the US market? This is logical if only for safety and maintenance reasons. Both sides must have known of this requirement from the beginning.
 
 ================

Added: 2015 WSJ article linked above:

In 2014 Communist China won contract to supply trains for Boston subway system:

9/17/2015, "Chinese Officials Unveil Energy, Railway Tie-Ups With U.S. Companies," Wall St. Journal, Lingling Wei  

"Last year, China CNR Corp. was awarded a $567 million contract to supply trains for Boston’s subway system, representing China’s first rail-related deal in the U.S....

Meanwhile, companies from both China and the U.S. will contribute to a planned a planned $3 billion fund to invest in energy-efficient projects in China, according to Fang Xinghai, an official at the Office of the Central Leading Group.

The intent of the fund is “to accelerate the deployment of U.S. technology and expertise in the Chinese market to substantially reduce CO2 and other climate-related emissions,” said a statement issued by the Paulson Institute, a think tank founded by former U.S. Treasury Secretary Hank Paulson that has been advising the Chinese side on the initiative.

Bo Bai, managing director of Warburg Pincus, a U.S. private-equity firm that has also been advising on the fund, said details of the fund would be “determined through negotiations that will continue over the next six months.”"...


.................. 


No comments:

Followers

Blog Archive

About Me

My photo
I'm the daughter of an Eagle Scout (fan of the Brooklyn Dodgers and Mets) and a Beauty Queen.