China Railroad Railway

China trusts its railroad trump card: CNR and CSR, one of China's leading train manufacturers, have merged. The merger, which is of great importance in terms of the financial and investment policies of the Chinese administration, has produced a giant with high international competitive power.
Chinese Prime Minister Li Kichiang highlighted railway projects at the summit held with leaders of Eastern and Southeastern European countries in Belgrade in December. The Chinese government offers projects along with their financing. Southeast Asia, Africa and Latin America are among the places where Chinese train manufacturers are active.
High-speed rail transport, financing and engineering services play an important role in China's new diplomacy strategy. In this context, billions of dollars of loans are extended to infrastructure investments abroad. Funds are allocated to economic corridors called the "New Silk Road" that will connect Europe and China. Observers point out that the merger of CNR and CSR is an important link in China's strategy to open up to new markets.
Advantage in global competition in China
The fierce competition between CNR and CSR weakened the companies' competitiveness in the international arena. China, so he lost some big tenders in Turkey and Argentina. Wang Mengshu, a specialist at the Chinese Academy of Engineering, said, "The new company that emerges from the merger will be in a more advantageous position in global competition with elements such as technological superiority, human capital and production capacity."
Since the domestic market is not sufficient, Chinese railway manufacturers are opening up to international markets. A multi-billion dollar deal in Mexico was lost in November due to insufficient transparency in the tender conditions. In response, CNR won the $ 567 million tender for the Boston Metro, a first in the US for Chinese companies. China will also supply a high-speed train line to California. The length of this line reaches one thousand 287 kilometers. The 4-kilometer-long line that will connect Brazil and Peru is another important project undertaken by Chinese manufacturers.
China in finance
Chinese public banks and investment funds that dominate billions of dollars are involved in the financing of the projects. Another financing option is the "Brics-Bank", a joint project of Brazil, Russia, India and South Africa. The Asian Infrastructure and Investment Bank (AIIB), also brought to the agenda by China, also provides resources for infrastructure projects.
China's Ministry of Commerce official Zhang Ji pointed out that Beijing is taking steps towards structural transformation, considering the slowdown in economic growth in the world. “The Chinese economy has entered a new 'normalization' process,” the Chinese official said. The government aims to create international brands in industries where it is advanced, such as rail transport and communications, in order to ensure quality growth ”.
Railways set an example for aviation
The merger in train manufacturers could set an example for other industries in China. Beijing aims to establish world-class leading companies in their field. A Chinese government official told the German Press Agency (dpa) reporter that the merger negotiations between aviation companies China Commercial Aircraft Corporation (COMAC) and China Aviation Industry Corporation (AVIC) are ongoing.
COMAC is currently working on two "domestic aircraft models" to compete with Airbus and Boeing. It is stated that the government is "impatient" due to the ongoing negotiations and the AVIC administration has been ordered to take over COMAC. The new company that will emerge with the merger is expected to have a high competitive power in the international arena and to operate more effectively.