Are these supposed to make a profit? Isn't this a state-run project, like highways?
Aren't the debts covered by the state anyways, via taxes?
Also, economic justifications are broad concepts.. how would it compare against a country like the US that has oil and people can therefore drive cars for cheap, whereas China doesn't have oil?
Is high-speed rail a more economically efficient system than cars?
> Are these supposed to make a profit? Isn't this a state-run project, like highways?
Yes, high-speed rail could be worthwhile even if it doesn't make a profit. I haven't seen any figures about high-speed rail so it may be a good investment. But in general I think China's investment boom is bad in the long term. By taking on so much debt to fund projects that have little economic return China is setting itself up for a lost decade or two like Japan.
> Aren't the debts covered by the state anyways, via taxes?
Yes, the debt is effectively passed on to taxpayers.
> Also, economic justifications are broad concepts.. how would it compare against a country like the US that has oil and people can therefore drive cars for cheap, whereas China doesn't have oil?
Sure, you need to look at the economy as a whole and the cost of energy is a factor. But that would include the cost of coal-fired power to run the trains - including costs of pollution.
> Is high-speed rail a more economically efficient system than cars?
China already had slow-speed trains and fast airplanes. So the better comparison is between (a) upgrading the capacity of the existing rail and airport systems; (b) building an entirely new rail network.
Aren't the debts covered by the state anyways, via taxes?
Also, economic justifications are broad concepts.. how would it compare against a country like the US that has oil and people can therefore drive cars for cheap, whereas China doesn't have oil?
Is high-speed rail a more economically efficient system than cars?