ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconFacebook IconIcon FacebookGoogle Plus IconLayer 1InstagramCreated with Sketch.Linkedin IconIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerIcon Opinion QuotePositive ArrowIcon PrintRSS IconIcon SearchSite TitleTitle ChevronTwitter IconIcon TwitterYoutube Icon
Business

End of L.A.-Vegas high-speed train hits China rail shares

HONG KONG -- Privately held U.S. company XpressWest said Wednesday it will terminate a joint venture with a consortium led by China's state-owned China Railway that was planning to build a high-speed rail line between Las Vegas and Los Angeles.

Construction had been scheduled to start as early as September. The announcement sent shares of Chinese railway operators skidding in Hong Kong on Friday, including CRRC, the country's largest manufacturer of train cars. The stock ended down 4.45%.

Other railway infrastructure companies, such as China Railway Construction and China Railway Group, saw their stock prices tumble as well.

XpressWest said the the main reason for the decision was construction delays that it blamed on its Chinese partners. It had become difficult to obtain the approvals needed to move the project forward, XpressWest said. The company said it plans to find a new partner to build the rail link.

Chinese media reported the same day that a China Railway International executive responsible for the venture told Xinhua News Agency that XpressWest was irresponsible to make such a statement while talks with CRI were still going on, vowing to defend its interests.

The decision to proceed with the project was taken before President Xi Jinping's visit to the U.S. in September 2015 as part of Xi's "going out" strategy.

You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

Get unlimited access
NAR site on phone, device, tablet

You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

3 months for $9

Get unlimited access
NAR site on phone, device, tablet

Your trial period has expired

You need a subscription to...

See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

See all offers
NAR on print phone, device, and tablet media