China's High Speed ​​Train Diplomacy

China, known as the best use of soft power strategy, after the 2000 102 sold 370 billion dollars worth of railway vehicles in the country and undertook train tenders. Now, with its One-Way Single Generation and Silk Road projects, 60 is located on the Asian-European route, and is knitting the country with tens of thousands of kilometers of international iron networks.

It is estimated that the world's population will reach 2050 billion in 9.7 and 70 will live in cities. It is expected that sea, land or air transport will be overcome by the complex transportation needs of this crowd. In the future, the belief that the most fundamental solution to traffic fright comes from railways is becoming an increasingly general trend all over the world.

In the long run, this projection, which carries the railways to the heart of the world transportation sector, has fueled a ruthless competition in order to have a share in the future of the global railway sector. The main axis of the competition is China, North Europe and North America based companies.

Thanks to the huge projects carried out in and out of the country, only the 10 has become the biggest player of the global railway industry in the XNUMX year. The first strategic answer to the Chinese player, who started to install rails in Europe in the middle of Europe after Asia and Africa, came from two European wagon manufacturers.


The CRRC, which initially took train jobs in Asian and African countries, has taken over the 1.6 billion-dollar high-speed train line between Hungary and Serbia in the last few years, penetrating into Europe; project, the two leg of the European train companies have put a foot. German Siemens and French Alstom, who have seen precisely that they cannot compete with China in terms of cost and profitability, announced last month that they have taken the world's biggest merger decision in the train sector. If the 67 bin employee of the new company is saved, it can politically force Macron.

Two European giants united their forces under a jointly established company. Siemens Alstom was the name of the new company where Siemens had a share of just over 50. The company's CEO will be French and the Chairman of the Board will be German. Even though there was a debate in France about the control of the Germans, Europe had a strategic attack against the Chinese threat.

Siemens Alstom emerged as a new rail company with a total sales revenue of 15.3 billion euros and profit before 1.2 billion euro tax-interest. However, it did not even reach the half-size of the Chinese CRRC, with sales revenue of 37 billion euros. The rumor spread that the Canadian rival Bombardier could also join the duo. But Bombardier denied it. CRRC and other competitors can compete on their own. Actually, it is said that Siemens made a merger meeting with Bombardier before Alstom, but resulted in a negative result.


China state train manufacturer firm CRRC, not 2003 2 in 5 is the world's largest 2005 with billion-dollar turnover. the train manufacturer. He surpassed his American rival, General Electric, at 2008 and outperformed the Canadian Bombardier, the German Siemens and the French Alstom at 2016. With an annual 37 of billion euros as of 4, the CRRC earns more than its current 2015 competitor. The company was at the 500 line in the Fortune Global 266 list at XNUMX.

According to the 2016 report of the SCI Verkehr research firm that closely monitors the world train industry, China's CRRC is making the 30 of the world wagon production alone. Leader in the electric locomotive market with a share of 46 percent. The market share in the high-speed train sector is 65. In the production of global subway vehicles, it has a share of 47. 102 is the country that exports its wagons to the country.

China began to work on the railroads to go to the global league by embracing their own territory with a network of railways. Despite its wide and challenging geographical conditions, 10 established the world's most advanced rail network throughout the year. He carried out his advanced technology challenge through the railways. 102 has sold 370 billion dollar wagons in the country. High-speed train or rail projects from sub-Saharan Africa to Latin America, Northern Europe to the Middle East have been undertaken and completed.


Now, on the historical trade route Ipekyolu and Spice, 30, which is on the Asian-European route and constitutes the 60 of the world economy, is implementing an option to sell goods more easily. This route offers more safety and shorter distance than sea routes. In order to achieve this, China launched the Single Path Single Generation and Silk Road projects in 2013, and implemented its soft power strategy by linking the countries of trade with the ironworks. It guarantees both its trade and promises to increase trade with its neighbors.

Investments in the railway infrastructure of the countries on the route are attractive to everyone. China's high-speed train diplomacy is based on the win-win principle. The fact that China has not rejected the Silk Road project so far shows that the strategy has worked. Although the US President is a heavier strategy than Trump's showing a security stick and winning hundreds of billions of dollars in the Middle East and Asia, it is clear who will win in the long run. This new diplomacy, described by international analysts as 'High Speed ​​Train Diplomacy', is met with enthusiasm in the target countries. In this way, China guarantees deeper political links in the target countries with the use of soft power.

The main growth backbone of the sector is the rail investments of the countries in China's Single Road Single Belt project. China is applying a very flexible model in these projects. If there is a local railway company in the relevant country, it does not insist on making the project for honey alone and also includes local firms in the project. If there is a financing problem in the local country, China also provides financing to the project by introducing its own banks. Funding and partnership policy are the backbone of soft diplomacy. Because many countries have heavy investment budgets for railways, or very limited. According to the size of the Chinese project, 10 projects over $ 1 billion and even financed projects.

  • The broad format of this paper was published in the November 2017 issue of Derin magazine.

Source : I



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