China's locally assembled bullet trains, which use Japanese technology, have began service on routes around Shanghai last week. The Ministry of Railways is claiming this as a triumph in "digesting" foreign technology, the Financial Times reported. "China Railways has the autonomous intellectual property rights for such trains," the ministry said in a statement. The trains, modified versions of Japanese E2-1000 Shinkansen trains, have been named CRH Model 2s. Nanche Sifang Locomotive indeed bought the train technology rights from a Shinkansen consortium in 2004. Nanche's usage rights are restricted to the current contract for 60 train sets.
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