BUSINESS

China Urban Rail Spending Set to Plunge in 2026

Published: Apr. 3, 2026 11:00 p.m. GMT+8

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The northern section of Tianjin Metro Line Z4 begins operations on Jan. 18, 2026. Photo: VCG

Investment in China’s urban rail transit networks is set to plunge nearly 34% in 2026, as local governments struggle with mounting operating losses and tighter project-approval requirements.

Spending is projected to fall to 272.7 billion yuan ($39.6 billion), following a 13.4% decline in 2025. The drop would mark the fifth consecutive year of declining capital expenditure since a peak in 2020, according to a report from the China Association of Metros.

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China urban rail investment to plunge 34% to 272.7 billion yuan ($39.6B) in 2026, after 13.4% drop in 2025; fifth year of decline since 2020 peak.
2025 operating cost 35.3 yuan/car-km vs 18.1 yuan revenue; mileage reached 13,000 km but passenger intensity/density fell.
Tighter approvals mandate 60% local funding, stricter benchmarks; China Railway contracts down 33.2% to 56.7 billion yuan.

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Who’s Who

China Railway Construction Corp. Ltd.: China Railway Construction Corp. Ltd. reported a 33.2% drop in new urban rail contracts to 56.7 billion yuan in 2025.

AI generated, for reference only