Development of China's Transport

Economy
The State Council Information Office of the People's Republic of China published a white paper titled "Development of China's Transport" on Dec. 29, 2016.

China SCIOUpdated: January 10, 2017

The State Council Information Office on Thursday published a white paper on the development of China's Transport.

Following is the full text:

Development of China's Transport

The State Council Information Office of the People's Republic of China

December 2016

First Edition 2016

Contents

Preamble

I. Course of Development

II. Comprehensive Transport System

III. Playing a Basic, Pioneering and Serving Role

IV. Opening up and International Cooperation

V. Development Goals for the Next Five Years

Conclusion

Preamble

Since the founding of the People's Republic of China (PRC) in 1949, and especially since the introduction of the reform and opening-up policy in 1978, China's transport has undergone historic changes, making significant contributions to the country's social and economic development, and the people's safe and convenient travel.

Since the start of the 21st century, the Chinese government has furthered the reform in transport, built a modernized comprehensive transport system, improved the management system, and modernized management capacity in transport, bringing China's transport to a new stage that incorporates multiple modes of transport and promotes their coordinated development.

China intends to complete the building of a moderately prosperous society in all respects by 2020, which is the first of its Two Centenary Goals. For this end, transport should quicken its pace of development, and fully play its basic, pioneering and serving role as a vanguard and solid guarantee for completing the building of a moderately prosperous society in all respects.

I. Course of Development

When the PRC was founded in 1949, transport was underdeveloped. Total railway length was only 21,800 km, half of which was paralyzed. Highway traffic length was only 80,800 km, and civil automobiles numbered only 51,000. Inland waterways were undeveloped, and only 12 civil air routes were operative. Postal outlets were limited. The major means of transport were animal-drawn vehicles and primitive boats.

Following the founding of the PRC, the Chinese government decided to create the basic conditions to restore transport. During the economic recovery period (1949-1952) damaged transport facilities were repaired, and water, land and air transport were resumed. In 1953 China began to develop transport in a planned way. During the First (1953-1957) and Second (1958-1962) Five-Year Plan periods and the economic adjustment period (1961-1965) China tilted state investment in support of transport. It renovated and built a number of railways, highways, ports and piers, and civil airports; expanded the transport infrastructure coverage in the western and remote regions; dredged major navigation channels; opened new international and domestic sea and air routes; expanded the postal network; and increased the amount of transport equipment.

During the Cultural Revolution (1966-1976), transport was seriously disturbed, but facilities, equipment and routes kept increasing; in view of the severe delays in unloading and transshipment, and overstocking at major coastal ports, port infrastructure construction was accelerated; and pipeline transport developed.

The reform and opening-up policy adopted in 1978 ushered in a new stage of social and economic development, bringing about the rapid development of transport. The Chinese government prioritized transport development, increased pertinent policy support, made pioneering attempts to open wider the transport market and establish social financing mechanisms, and reversed the adverse situation that transport was unable to match social and economic development.

China implemented the contract responsibility system in railway operation; issued three policies for supporting highway development, namely, raising highway maintenance fee levied on highway users, collecting vehicle purchase tax, and building highways with loans and repaying the loans with tolls. Highway construction and water transport engineering projects started to adopt public bidding. Ports were the first to be opened up to the outside world, and sea transport was the first sector to go global. Civil aviation began to operate as an enterprise, and an air transport market took shape. The postal services management system was reformed, Express Mail Service (EMS) was set up, and postal savings services were resumed. Investment in transport development was increased and non-government capital was attracted to go into transport infrastructure construction. In 1988 the Shanghai-Jiading Expressway was opened to traffic, the first expressway on China's mainland.

In 1992 China set the reform goal of establishing a socialist market economic system. Reform and opening-up efforts were furthered in transport while the development of various modes of transport achieved breakthrough progress. Since 1997, it has raised its average railway speed six times as a result of large-scale construction. A plan was made to build a transport framework where highways, waterways and ports play the major role, and put in place an advanced transport support system. A goal was set to accelerate related construction. China began to collect civil airport construction fees, and set up a civil airport infrastructure construction fund, a railway construction fund and an inland water transport construction fund in succession. To address the Financial Crisis starting in Southeast Asia, China implemented proactive fiscal policies to speed up investment in highway construction, which spurred the emergence of large-scale expressway construction. Around that time, the country implemented the strategy of developing the western regions, and enhanced the construction of railways, highways, airports and major gas pipelines there. It set the goal of "building asphalt and cement roads in rural areas to facilitate urbanization," bringing a new upsurge of rural road construction. China furthered the reform of the port management system and accelerated the construction of ports. It separated postal services and telecommunications services, and government functions and enterprise operation in postal services, promoting modern postal services integrating information flow, capital flow and logistics.

The Chinese government issued the Medium- and Long-Term Railway Network Plan, National Expressways Network Plan and related programs, while vigorously improving basic transport public service capacity, urban and rural passenger transport, urban public transport and transport safety emergency rescue. In 2008 China's Ministry of Transport (MOT) was established, and efforts were made to put all management of transport by air, water and land, as well as postal services under the ministry. The same year, the Beijing-Tianjin Intercity Railway was opened to traffic, marking the start of China's high-speed rail era.

Since the 18th CPC National Congress in 2012, the construction of a modernized comprehensive transport system has been accelerated. In 2013 railway sector realized separation of government functions from commercial operations, and the institutional reform to establish an efficient government department to exercise unified management of transport by air, water and land, as well as postal services was basically completed. The transport sector has pushed reform to a higher level by enhancing law-based management, promoting comprehensive, smart, green and safe transport, and formulating development plans to serve the Three Initiatives - the Belt and Road Initiative, the Beijing-Tianjin-Hebei integration initiative and the Yangtze River Economic Belt initiative. China has expedited the building of a comprehensive transport infrastructure network, and reinforced the connectivity of multiple modes of transport, advancing modern logistics in this sector and securing comprehensive transport services. It has enhanced the supply and management of basic public services for transport, supporting the development of transport infrastructure in contiguous impoverished areas, urban and rural passenger transport and urban public transport. China has also promoted balanced development of transport in its eastern, central, western and northeastern regions. In this regard, western China has quickened its pace in developing high-speed railways, and overall central and western China' s transport conditions have been greatly improved. In 2013 the Motuo Highway in Tibet was opened to traffic, indicating that every county in China now had access to highways.

Over the past 60-odd years China's transport has undergone the phases of bottleneck, preliminary alleviation and basic adaptation to socio-economic development demands. China has narrowed its gap with world-class transport, and surpassed the latter in several fields. A modernized comprehensive transport system is now emerging on the horizon.

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