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Chapter 3 Infrastructure Development in China-china infrastructure development

Chapter 3
Infrastructure Development in China
Liang Chuan
Yunnan Academy of Social Science
March 2008
This chapter should be cited as
Liang Chuan (2008), `Infrastructure Development in China', in Kumar, N. (ed.),
International Infrastructure Development in East Asia - Towards Balanced Regional
Development and Integration, ERIA Research Project Report 2007-2, Chiba:
IDE-JETRO, pp.85-104.
Chapter 3: Infrastructure Development in China
Liang Chuan
Abstract
This report summarizes the current status of infrastructure development in China and
the infrastructure construction demand for infrastructure development. The optional
investments on infrastructure are described based on the poverty alleviation goal and
economic trade goals. The finance investment mechanism for infrastructure in China is
also depicted. The key issues in relate with infrastructure construction and infrastructure
investments, infrastructure technology and management, policy issues, and institutional
reform issues are discussed. Policy recommendations are made based on the discussion
on key issues.
1. INTRODUCTION
Infrastructure development in China has rapidly upgraded within the last five years (the
Tenth Five-Year Plan). Infrastructure investment has been the engine driving the
economic growth of China. The gross domestic production of China reached 22 trillion
yuan, increasing at an annual rate of 10.8 percent in 2006. Infrastructure development
and economic growth are mutually pursued.
The economic structure has transformed into a socialist market-orientated economy
since 1986, which has been consolidated in the early 1990s. Export-orientated economy
supported by infrastructure development contributes largely to the economic growth.
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2. CURRENT STATUES OF INFRASTRUCTURE DEVELOPMENT
IN CHINA
2.1. Roads
Road length has increased 250,700 km in China from 2000 to 2005, reaching 1,930,5
00km in 2005. The layout of road network has further improved. The technical grades
and road surface grades have been both upgraded. Highway construction has broken
through the historical records. Road length in the counties and towns have continuously
and rapidly increased. The road density has also increased, and the accessibility by
roads has been improved. Passenger transport and freights through roads are up 26
percent and 29.2 percent, respectively, of the number of passengers transported by all
the transport tools.
2.2 Railways
By the end of 2005, the length of running railways was 75,000 km, 9.9 percent up from
2000. It included double tracked rail of 25,000 km and electrified rail of 20,000km, 19.4
percent and 35.6 percent up, respectively, from 2000. Passengers by rail in 2005 reached
1.156 billion, which grew 1.92 percent from the previous year. The turnover of
passengers was 606.2 billion in 2005. Freight and turnover both grew 10 percent.
2.3. Airline
The civil airline of China became the second large air transportation system in the world,
next to the United States, in 2005, based on data on the total turnover of regular airlines
by the International Civil Airline Organization of the Member States.
2.4. Waterway
The transportation capacity of the internal waterway increased from 20.37 million tons
in 2000 to 30.35 million tons in 2004, 50 percent up. The average transportation
capacity per ship rose from 104 tons to 216 tons. The fright capacity by sea rose to the
fourth place globally, while finished freight by sea accounted for 7 percent of the
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