How can competition be introduced into Chinese railways?

This paper addresses the issue of railway reform in China. It begins with a description of the strengths and the weaknesses of Chinese railways. There follows a review of the different ways of putting competitive pressure on railways and an analysis of their application to Chinese railways. Intermodal competition, parallel competition, competition for and in the market are analyzed from this perspective. Finally, some recommendations are put forward regarding a gradual reform process for Chinese railways. In particular, the possibility of an on-track duopoly for passenger railways is analyzed.