It is not an understatement to say some of the HSR lines in Western China are indeed overbuilt. For example, the whole Lanzhou - Urumqi section 350kph capable line is unnecessary. Now it is used to operate 160-200 kph conventional passenger trains since it is so underused by high-speed EMUs. That section would have been far better served by quadrupling conventional rail (two tracks for 120-160 kph passenger train, two for freight). High speed passenger dedicated lines above 250 kph should only be built EAST of the Tengchong-Heihe line, along with the Guanzhong (Xi'an) and Sichuan (Chengdu and Chongqing) plains due to population density reasons.
It is totally wrong to look at such infrastructure from the lens of profitability which is a western/capitalism/privatism standing point. I am sure you grow up in such enviroment. China is none of them ever.
In a society where state is paramount, the state (King, Emperor or President) acts as head of a family. Some brothers live and work in the city like the eastern populations you mentioned, others live and work in the country-side managing summer house, farm lands etc. The father is responsible to make sure all members have the same living standard. To sustain a equal living condition for the forest house as in center of a mega city is NOT a business, nor is the father going to make a profit from himself or his children, nor is any children to complain about each other spending undue money.
Another example is China's "telephone to every village and later 4G to every village" programs. This will never happen in a capitalist country because operators will never build fibre lines or cell towers that does not make profit.
In short, China's seemingly "costly/wasteful" infrastructure program is like a person buying a summer house at high price for leasure. In the west it is a money making business of a property owner lending out apartments to tenants.
That is not to say that China ignores economic consideration, but that is like how one would consider where and how much to pay his summer house.
Very true, but for strategic and military reasons, you don't need 350 kph capable tracks. Those 350 kph capable tracks and associated systems are simply too expensive. The more affordable 160-200 kph capable dual passenger-freight heavy tracks (like the ones used for the Sichuan-Tibet, Chonqqing-Lanzhou, and the new Chengdu-Kunming lines) are the most fit for Western China, especially sparsely populated areas with significant strategic importance. For example, you can have temporary 200 kph semi high speed EMUs running on Chongqing-Lanzhou and the new Chengdu-Kunming lines during peak seasons like the Chinese New Year. Once the peak seasons end, all passenger trains return to 120-160 kph services, whilst 100-120 kph freight trains resume normal schedules.
Not really right. the cost difference is the operation (electricity cost), not much of the line. 350 train and 250 trains are nearly the same cost to produce, but running at 350kmph consumes much more electricity than running at 250kmph. What was done was building 350 capable infrastructure at similar cost of 250 line and run at 250kmph to save electricity. It may further reduce to 200kmph because of the strong side wind that is frequent in the Hexi coridor and desert. There was many times that trains (any type) were forced to stop due to such wind. But in calm days, you can run up to 250.