broadsword
Brigadier
Is CRRC obligated to Buy America?
Chinese Economics Thread
- Thread starter Norfolk
- Start date
shen
Senior Member
That NYT article is clearly talking about CRRC factory in Springfield Mass to build Boston subway train car. The 60% figure clearly is in reference to that deal. So even if there is not required, CRRC is giving a large work share to the American factory to satisfy American nativist sentiment.
Don't try to confuse the issue by introducing the unrelated XpressWest deal in this discussion. But even in that deal, CRRC can offer the same deal to America that was offered to Indonesia, no government financing necessary.
SamuraiBlue
Captain
Yes IF they win the federal funded HSR bid that is scheduled in the future.
SamuraiBlue
Captain
No it's not the one has nothing to do with the other. Buy America act only applies when federal funding is involved. So the Chinese company was able to obtain an advantage in pricing due to lower labor cost. All transit factories in the US including Japanese are knock down factories by the way.
broadsword
Brigadier
But here the subject is the Boston transit deal, which we are discussing.
shen
Senior Member
If you think that's the deciding factor than you are truly confused and haven't followed the discussion. I think I'll end this discussion with you on the subject here.
broadsword
Brigadier
Laos-China rail expected to begin construction in November
Vientiane Times
Publication Date : 29-09-2015
The groundbreaking ceremony to begin construction of the Laos-China rail project to link Laos with China and other Asean member counties is expected to begin in November if things go as planned, a minister said on Friday.
Minister of Public Works and Transport Dr Bounchanh Sinthavong briefed the media on the progress made on the high-speed railway project at a press conference held shortly after the closing of the three-day biannual meeting between the Cabinet, Vientiane Mayor and provincial governors where the minister reported about the project.
Construction of the project, which was initially estimated to cost US$6.8 billion, will take about five years to complete.
The two governments agreed that state enterprises of both sides join in developing, managing and operating the railway project, which will connect the Lao capital of Vientiane with the Chinese border at a distance of 417 km.
“We are preparing to establish the Lao National Railway Enterprise to joint venture with the Chinese enterprise to develop, manage and operate the project,” he told the media.
The two governments agreed to directly contribute 40 per cent of the total investment for the project with the Lao government responsible for 30 per cent of this, amounting to $840 million, and the Chinese government contributing 70 per cent.
The enterprises of the two countries will source and be responsible for the remaining 60 per cent of the total investment.
In the event the Lao government struggles to make its contribution of $840 million, the Chinese side has agreed to provide a low-interest loan of $500 million to Laos while the rest will have to be sourced by Laos.
Revenue to be generated from a bauxite mine and three potash mines in Laos are to be used to secure the Chinese loan. The 20-year loan period will carry an annual interest rate of three percent with an interest-only period, i.e. no repayment of principle, for the first five years.
The minister gave assurance that the revenue to be generated from the mines would be sufficient to repay the loan.
In order to ease public concern that the government will have an untenable debt from the project, the minister said the Lao government is responsible for only $840 million as the remaining 60 per cent of the total investment will be sourced by and be the responsibility of the two enterprises.
Dr Bounchan said his ministry has prepared 11 frameworks for the project's implementation including preparing a draft of the co-finance master agreement.
The planned single track with a 1.435-metre standard-gauge rail network will have 31 stations, including five main stations, and 76 tunnels with a total length of 195.78 km. The line will also have 154 bridges of 67.15 km in overall length.
When being used for passenger transport the trains will travel at a maximum speed of 160 km per hour, but when goods are being transported the maximum speed will be 120 km per hour.
The Lao National Assembly approved the project in 2012 as part of plans to turn Laos from a landlocked country into a land-linked nation.
The planned rail project will form part of the regional rail link known as the Kunming-Singapore rail line over a distance of 3,000km. The high-speed line will link China's Kunming all the way down to Singapore, passing through Laos, Thailand and Malaysia
Vientiane Times
Publication Date : 29-09-2015
The groundbreaking ceremony to begin construction of the Laos-China rail project to link Laos with China and other Asean member counties is expected to begin in November if things go as planned, a minister said on Friday.
Minister of Public Works and Transport Dr Bounchanh Sinthavong briefed the media on the progress made on the high-speed railway project at a press conference held shortly after the closing of the three-day biannual meeting between the Cabinet, Vientiane Mayor and provincial governors where the minister reported about the project.
Construction of the project, which was initially estimated to cost US$6.8 billion, will take about five years to complete.
The two governments agreed that state enterprises of both sides join in developing, managing and operating the railway project, which will connect the Lao capital of Vientiane with the Chinese border at a distance of 417 km.
“We are preparing to establish the Lao National Railway Enterprise to joint venture with the Chinese enterprise to develop, manage and operate the project,” he told the media.
The two governments agreed to directly contribute 40 per cent of the total investment for the project with the Lao government responsible for 30 per cent of this, amounting to $840 million, and the Chinese government contributing 70 per cent.
The enterprises of the two countries will source and be responsible for the remaining 60 per cent of the total investment.
In the event the Lao government struggles to make its contribution of $840 million, the Chinese side has agreed to provide a low-interest loan of $500 million to Laos while the rest will have to be sourced by Laos.
Revenue to be generated from a bauxite mine and three potash mines in Laos are to be used to secure the Chinese loan. The 20-year loan period will carry an annual interest rate of three percent with an interest-only period, i.e. no repayment of principle, for the first five years.
The minister gave assurance that the revenue to be generated from the mines would be sufficient to repay the loan.
In order to ease public concern that the government will have an untenable debt from the project, the minister said the Lao government is responsible for only $840 million as the remaining 60 per cent of the total investment will be sourced by and be the responsibility of the two enterprises.
Dr Bounchan said his ministry has prepared 11 frameworks for the project's implementation including preparing a draft of the co-finance master agreement.
The planned single track with a 1.435-metre standard-gauge rail network will have 31 stations, including five main stations, and 76 tunnels with a total length of 195.78 km. The line will also have 154 bridges of 67.15 km in overall length.
When being used for passenger transport the trains will travel at a maximum speed of 160 km per hour, but when goods are being transported the maximum speed will be 120 km per hour.
The Lao National Assembly approved the project in 2012 as part of plans to turn Laos from a landlocked country into a land-linked nation.
The planned rail project will form part of the regional rail link known as the Kunming-Singapore rail line over a distance of 3,000km. The high-speed line will link China's Kunming all the way down to Singapore, passing through Laos, Thailand and Malaysia
AssassinsMace
Lieutenant General
The only example of one country investing and trading with another pulling people of poverty is from China. Africa has been under the stewardship of Western private sector business for 400 years and no real growth until China entered the scene. Yeah it's trade all right but not private sector investment only. And they criticized China for investment and trade and not aid like the West did it?
broadsword
Brigadier
Props to him for admitting to his mistakes.
2015-09-28 09:00 | Global Times | Editor: Li Yan
Officials in the U.S. have declared "what amounts to a truce in their campaign over China's new Asian Infrastructure Investment Bank (AIIB)," claiming that they have secured commitments from the Chinese central government to ease Washington's concerns, the Financial Times reported Sunday, citing U.S. officials.
China will also "meaningfully increase" its financial contributions to the World Bank and other potential regional financial institutions, the Financial Times report said.
The AIIB, initiated by Chinese President Xi Jinping in 2013 to help finance infrastructure projects in Asia, is expected to be officially established by the end of this year.
A total of 50 prospective founding members of the AIIB signed in Beijing on June 29 the bank's articles of agreement that outlines the bank's governance structure.
The Obama administration, during last week's State visit by Chinese President Xi Jinping, also emphasized its pledge to back China's bid for the inclusion of the yuan in the basket of reserve currencies of the International Monetary Fund (IMF) as long as China is declared worthy by the IMF.
During President Xi's visit, Washington had secured a pledge from China to increase its financial contributions to the World Bank and regional development banks, the Financial Times reported, citing senior U.S. officials.