【By Observer Net, Qi Qian】Recently, the California high-speed rail project, which has been under construction for 17 years without completion and has cost nearly $7 billion, has sparked fierce disputes between the Trump administration and the California government. The Trump administration terminated federal funding, while California Governor Newsom played the "China card" and even announced a lawsuit.

At the same time as both sides were "fighting fiercely", on July 18th, representatives from Chinese and American industries gathered at the China International Supply Chain Expo's "Sino-US Railway Transportation Industry Roundtable Meeting" to discuss Sino-US railway cooperation. According to the South China Morning Post, Everett Wakai, the Commercial Counsellor of the U.S. Embassy in China, stated at the meeting that both countries have their own strengths in the railway industry and look forward to cooperation.

Wakai said that the United States has long been a leader in freight railways and urban transportation, while China has become a global power in high-speed railways. He believed that there is potential for deepening cooperation between the two countries in the railway transportation field.

Wakai also boasted that as a long-term leader in freight railways and urban transportation, the United States can still provide rich experience to China.

In the Spring Festival of 2018, hundreds of EMUs were gathered on the storage line of the Wuhan EMU Depot, ready to depart. Visual China

Guan Jiaxin, Vice President of China Railway Construction Corporation, said that the company has widely cooperated with American companies in equipment, and "we look forward to exploring more cooperation opportunities in markets where American companies have strong influence, such as Latin America, the Middle East, Africa, and Europe."

The South China Morning Post reported that some industry representatives mentioned that for many years, American railway equipment manufacturers have provided equipment for China's railway projects, covering domestic and overseas projects, including urban rail transit systems (such as subways) and conventional railway projects.

Cui Yao, President of Westinghouse Brake (China), said that over the past two decades, the company's revenue has grown from almost zero to an average of $500 million per year, with $300 million coming from sales in the Chinese market and $200 million from products made in China and exported to overseas markets. He called it a "huge success".

During the event, another American company representative said, "Our business has not been affected by the Trump tariffs because the products supplied to Chinese projects in third countries are not subject to US-China tariffs." The representative also said that their supply to Chinese local projects has not been interrupted yet, thanks to the company's high degree of localization, including establishing several joint ventures with Chinese enterprises.

Subsequently, this American company representative reminded that Chinese railway equipment manufacturers may find some opportunities in the U.S. subway market, but there is almost no space for them in the railway sector, as the sector will be strictly dominated by local American companies.

Slow progress of the California high-speed rail project, U.S. media

However, just as U.S. diplomats boast and American companies refuse to let Chinese companies enter the U.S., the only high-speed rail project in the United States is facing difficulties.

As a "long-standing problem" in the field of U.S. infrastructure, the history of the California high-speed rail project dates back to 2008. After multiple delays and cost reductions, the project now only has about 275 km of track remaining. However, the cost of just this section alone is as high as $3.5 billion, exceeding the original budget of the entire project, and there is a $7 billion funding gap.

Trump has long been dissatisfied with the California high-speed rail project. In February this year, the U.S. Department of Transportation launched a compliance review of the project's funding. A report in June indicated that the project had "missed deadlines, insufficient budgets, and questionable passenger volume forecasts."

On the evening of July 16th, U.S. Transportation Secretary Sean Duffy announced the decision to withdraw $4 billion in project funds. On the same day, Trump wrote on social media that he would rescue American citizens from funding California's "disastrous, severely over-budget 'high-speed rail to nowhere'". He said, "Thanks to Duffy, no more federal funds will be spent on this Newsom scam."

Later that evening, California Governor Gavin Newsom issued a statement responding, saying the Trump administration's decision was "unlawful" and vowing to fight back. He also brought up China, claiming that Trump's move was "trying to hand the future over to China," and said that California "will not let him succeed."

Reuters reported that despite California government repeatedly playing the "China card", the dispute between Newsom and Trump over the California high-speed rail project is related to the U.S. two-party struggle. The report pointed out that the Trump administration's termination of federal funding marks the latest confrontation between the Republican president and the Democratic governor, who is widely seen as a top candidate for the 2028 presidential nomination.

On the 17th, the California High-Speed Rail Authority filed a lawsuit in the U.S. District Court in Los Angeles against Trump's decision, calling it an "arbitrary and capricious" abuse of power. The government agency also stated that the U.S. investment in high-speed rail is minimal compared to other countries, especially highlighting China.

The California High-Speed Rail Authority said that China "invested up to $1.4 trillion, building a high-speed rail network of nearly 28,000 miles." According to data from the China State Railway Group, currently, China's high-speed rail operating mileage reaches 48,000 kilometers, accounting for more than 70% of the world's total high-speed rail mileage, covering 97% of cities with a population of over 500,000.

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