China Railway Corporation Established by Government Session
The Chinese State Council has just authorised the creation of the China Railway Corporation as a state-owned central enterprise funded by the Chinese central government. It is now under the supervision of both the Chinese Transport Department and the Chinese National Railway Bureau.
The former Chinese Railways Ministry has now been split into three:
- China Railway Corporation — mostly for railway operations and for business as an enterprise, not as a government ministry
- National Railway Bureau — mostly for administrative business that are the matters of a government organisation
- Chinese Transport Ministry — it now will take over planning and policy for China’s railway systems
The railways have not in any way been privatised, nor has the network been split from the operators. China Railway Corporation continues to maintain control over the general despatch system in China.
The registered capital of the newly-formed China Railways Corporation is CNY 1.036 trillion. It is exempt from capital evaluation. The central government decides on who shall be a leader at the new railways company. All 18 current railway bureaus and enterprises, as well three additional transport companies and the interests of other organisations, are now transferred to the new China Railways Corporation.
Finally, the Chinese government has also stated it will not change its policies in support of the railways. This enables the transition to be completed as smoothly as possible.