China's Trillion-Dollar Bet on High-Speed Rail Transformation

China's high-speed rail network has rapidly expanded under President Xi, but faces financial challenges due to mounting debt and liabilities. Despite plans for further expansion, newer lines in rural areas struggle with low ridership, leading to questions about economic viability. Flagship routes between major cities remain profitable, but ticket prices are kept low for public access, limiting profit potential. The railway operator accumulated nearly $1 trillion in debt, requiring significant funds for debt service. Despite these challenges, plans are in place to add 15,000 more miles by 2035, raising concerns about the sustainability of the network. The expansion has become a symbol of China's technological advancement, but also highlights the need for a balance between infrastructure development and economic viability.