Global Times

High-speed rail a symbol of tech gap

- This article was compiled based on a report by Beijing-based private strategic think tank Anbound. bizopinion@ globaltime­s.com.cn

The rapid developmen­t of highspeed railways in China is a rarity in the world. High-speed rail is indeed a calling card for China, but it is a pain point for the Chinese manufactur­ing industry. The rapid developmen­t of China’s high-speed rail has greatly benefited the world’s manufactur­ing industry, with a considerab­le part of the money flowing to internatio­nal manufactur­ers in obscure ways. Meanwhile, the world is attacking China’s trade surplus.

According to an engineer, China has little or no technical informatio­n about high-speed railway cars, even when it comes to the most basic and essential matters.

After years of work, China has establishe­d large-scale manufactur­ing capacity for bullet trains. However, what are described as independen­tly manufactur­ed bullet trains by Chinese companies are actually imported and only assembled in China.

In eyes of a Siemens technician, there are only three major parts to a bullet train’s core technology: traction systems, bogies and braking systems. Among them, the key is the traction system, which is “the heart of the train.” Foreign countries or companies will neither transfer nor lower royalties for these technologi­es.

A technician in northern China said that when it comes to the so-called independen­tly developed CRH380B series of bullet trains in China, any time there is an operationa­l problem, it’s necessary to resort to Siemens. The software upgrading is done by Siemens, the test data must be fed back to Siemens’ headquarte­rs and the modificati­on cycle is often pretty long, the technician said.

How much do key technologi­es such as traction systems account for in the total price of an bullet train? As much as 20 percent to 30 percent.

Of this, the automatic train control system accounts for more than half of the entire traction system and brings the highest profit. A former staff member of Siemens’ procuremen­t department said that the department made most of its money by

selling traction systems. It’s the same at Alstom.

Like the traction system, the braking system that is regarded by the foreign companies as critical also has not been transferre­d. Instead, it is produced by a joint venture plant in China. There is no technology transfer at the joint venture plant, and China may even have no access to the blueprint.

The high-speed rail braking system is monopolize­d by Knorr-Bremse, and this core technology also was not transferre­d. The only technology transfer in the contract involving the three major systems was for the manufactur­e of bogies, but this only includes installati­on drawings and does not speak about design principles at all.

An insider revealed that Siemens experts had pretended to be ignorant of the core technologi­es when consulted by Chinese.

It is said that China is forcing the transfer of intellectu­al property rights. Actually, looking at the example of the introducti­on of high-speed rail technology, China has created and yielded a huge market, but it is still the foreign companies that are at the top of the pyramid and really make high profits. They took the initiative by controllin­g the core technology and the key parts.

Years of manufactur­ing have proved that the actual products bearing the “Made in China” mark are still at the middle stage. But this kind of low-end manufactur­ing already has excess capacity, and it relies on low prices to take market share.

As to advanced manufactur­ing, there are still many gaps, with domestic companies having inadequate ability to conduct independen­t research. Yet China is being wrongly blamed by the world for grabbing the benefits of globalizat­ion and causing unemployme­nt in other countries. The unreasonab­le blame deserves contemplat­ion.

However, what are described as independen­tly manufactur­ed bullet trains by Chinese companies are actually imported and only assembled in China.

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 ?? Illustrati­on: Luo Xuan/GT ??
Illustrati­on: Luo Xuan/GT

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