Railway sector to receive $2b in stimulus

China’s railway sector will receive US$2 billion in investment this year as part of China’s US$586 billion stimulus plan, with much of the funds going to boost the domestic rail industry, the Ministry of Railway’s chief spokesman told the Wall Street Journal in an interview. Wang Yongping said the funds would come from government bonds issued late last year and could create 150,000 new jobs. Wang said China would spend most of the money on domestic firms and that foreign investors are welcome only as joint venture partners for domestic companies producing rail cars. In response to a question about previous controversies over the transfer of foreign railway technology to China, Wang said, “After studying the technology we don’t completely copy it; according to China’s situation we recreate it.”