Maglev Train Production Line Suspended Amid Overcapacity Concern

China Railway Construction Corp., a top state-owned railway builder, has halted work on a new maglev train production plant in Changsha in response to the government’s tightening scrutiny of urban transportation investments. Central authorities are concerned that excessive local government transit projects will drive up public debt and create overcapacity.

The suspension of the facility, backed by CRCC’s subsidiary China Railway Construction Heavy Industry Co. (CRCHI) in central China’s Hunan province, came in early May shortly after the National Development and Reform Commission (NDRC) held meetings with several state-owned transportation-equipment makers regarding a March policy on railroad investment, multiple sources close to the matter told Caixin.