[norwaypinesavage]

“China Railway’s debt is government-backed,” says Li. “It won’t default.”

Riiiiiiight. Railways everywhere have the same problems as US railways: The value of the assets vastly exceeds the income generated. The Return On Net Assets (RONA) is miniscule. A very large chunk of the assets is land. As the country prospers, the asset value increases (the price of land goes up), and the revenue doesn't necessarily follow. High speed rail is even worse. The cost of the ultra smooth rail, aerodynamic equipment, high power locomotives, and fast ingress/egress gates is also much higher. An inherently corrupt communist governmental system exacerbates the problem even more. I wouldn't count on it lasting forever.

[Mr. Lucky]

Not to be argumentative, but US railroads tend to be reliably profitable and have no trouble raising capital in the open market.

Union Pacific, for instance, had net income of $6 Billion last year.