ASSESSMENTS

The Ouster of China's Railways Minister

Feb 18, 2011 | 14:26 GMT

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Summary

Chinese Minister of Railways Liu Zhijun was fired Feb. 12 for corruption and likely also as a result of political pressures stemming from his successful push to vastly expand the railway system in the country. Under Liu, the rail system flourished — high-speed rail most of all. However, this came at the cost of enormous debt for the ministry and angst over its monopoly over the country's entire railway sector. Liu's ouster opens the door for possible reforms to the ministry — but also raises questions about China's railway expansion plans going forward.

The removal of China's powerful minister of railways opens the possibility of reform for the ministry but casts doubt on the future of the country's high-speed rail ambitions....

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