Study on Reform and Countermeasures of China's Railway Sector under the Debt Crisis

In recent years, high-speed railway construction in China has entered a stage of rapid development. However, due to the ministry of railways' own systemic problems as well as the bad financing channels, railway constructions mainly rely on debt financing. It causes the whole railway system to build up a huge debt. The ministry of railways had to slow down the pace of high-speed railway construction. In 2012, there are only nine new construction project plans. It has a huge drop comparing to 70 ambitious goals of the program in early 2011. But even so, the huge debt of the ministry of railways has also seriously affected the development of the whole railway industry. To solve the debt crisis has become the most urgent thing at the moment. This paper attempts to analyze the debt problems of the railway sector and obtain the reasons of the debt crisis, and then explore ways to resolve the debt crisis. In this paper if we want to solve the debt crisis, we should solve the problem of the institutional mechanisms of the railway sector firstly. The railway sector should be reformed rationally in essence. Study on reform countermeasures of China's railway sector under the debt crisis is of great significance to the reform of railway sector.