ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
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.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more