A sleeping giant awakens; Chinese Railways is being reorganized along more market-oriented lines and is opening itself to advanced technology from outside as it tries to satisfy a voracious national appetite for rail capacity - Company Profile - Industry Overview

Railway Age, April, 2003 by Mike Knutton

The Ministry of Railways is still responsible for the China Railway Materials and Supply Corporation, which is involved in purchasing raw materials such as diesel oil, electro-mechanical products, spare parts, and import-export activities.

The Chinese railway manufacturing and supply industry is building up its export business, primarily--but by no means exclusively--with other developing countries, as both Australia and the U.S. have purchased, respectively, railcars and freight car components. Dalian Diesel Locomotive Works has exported locomotives to Myanmar, North Korea, Nigeria, Tanzania, and Zambia, while the Xi'an Locomotive Rolling Stock Factory builds about 3,000 tank cars annually for customers in Africa.

Foreign companies planning to get a slice of all this action need to do some careful homework as differences in culture and business practice are significant, and the quality and commitment of a joint-venture partner can make or break any deal.

"The first step for a foreign company is to establish contact with CR's International Cooperation Department," says Cao Jing. The department also organizes visits and meetings for foreign delegations. The level of access to senior CR managers provided for these delegations led consultant Bob McIntire, the leader of a recent Railway Supply Institute International Trade Committee/Federal Railroad Administration-sponsored U.S. delegation to say: "Any U.S. supplier not already well placed in China would find it exceedingly difficult, if not impossible, to achieve what this group accomplished in understanding the rail picture and malting meaningful contacts throughout this complex system."