Vice President: Lin Zhonghong Economic & Planning Research Institute Prospects For Economic Trade Development Between China, Europe and Hungary Vice President: Lin Zhonghong Economic & Planning Research Institute Chinese Railways April, 2005

CONTENT The Current Situation of the Chinese Railways The Development Plan of Chinese Railway Network The Economic Development of China, Europe and Hungary

The Current Situation of the Chinese Railways Achievements By the end of 2004, the route length of Chinese Railway was more than 74.4 thousand km Double track: 24.9 thousand km and the rate was about 34%; Electrified track: 19.3 thousand km, and the rate was 26%. The network size of Chinese Railway ranks the third in the world and the first in Asia. 74408 KM 24908 KM 19303 KM Total Length Double Track Electrified Track

The Current Situation of the Chinese Railways Achievements For Passenger Transportation: Traffic Volume: 1.1 billion persons Traffic Turnover: 571 billion person-km For Freight Transportation: Traffic volume: 2.5 billion tons Traffic Turnover: 1911 billion ton-km

The Current Situation of the Chinese Railways Speed-Raising Five times Speed-raising has been implemented since 1997. 16,500 km with speed at 120 km/h. 7,700 km with speed at 160 km/h.

The Current Situation of the Chinese Railways The Heavy Haul Railways The Length arrives at 5,355 km. Datong-Qinhuangdao railway is the first line with double track, electrified and heavy haul unit train for coal transportation. 153 million tons fulfilled in 2004. Chinese Railway also strives to develop container transportation with an increase of 16% annually in the late five years. In 2004, the dispatching volume of container transport accomplished was 3.36 million TEU.

The Development Plan of Chinese Railway Network Long-Medium Term Development Plan of Chinese Railway Network has been approved by China State Council in Jan, 2004.

The Development Plan of Chinese Railway Network Total Network: 85 thousand km Dedicated passenger lines: 5 thousand km Double track: 35 thousand km Electrified: 35 thousand km. KM 85000 35000 35000 5000 Total Length Double Track Electrified Track Dedicated Passenger Line

The Development Plan of Chinese Railway Network Total Network: 100 thousand km The rates of double track line and electrified line will get to 50%. Transport capacity can meet the demands of national economy and the social development. The main technology equipments will get to or close to the world level.

The Development Plan of Chinese Railway Network For Passenger Transportation Express passenger corridors between capital cities and medium cities will be built. By 2020, the route length of passenger transport line will amount to 12 thousand km.

The Development Plan of Chinese Railway Network For Modernization of Technology and Equipments Improving technology and equipments standard of locomotive and rolling stocks. Accelerating information construction for railway transport organization, transport management as well as passenger and freight marketing. For Container Transportation Chinese Railway will also make great efforts to develop container transportation, upgrade container transport lines and build up large size container stations. Chinese Railways also develop double-layer container transport, Europe-Asia Continental Bridge transport and multimode-transport.

The Economic Development of China, Europe and Hungary Overview China always pays great attention to economic trade cooperation with Europe. Europe has become the important trade partner of China and the main technology and capital supporting to China. Middle East European countries are also going to be the important trade partners of China.

The Economic Development of China, Europe and Hungary Achievements in 2004 The total trade volume of China’s imports and exports reached US$ 1154.8 billion, a rise of 36% over the previous year’s figures; Imports reached US$ 561.4 billion, a rise of 36%; Exports US$ 593.4 billion, a rise of 35%. In 2004,US$ 60.6 billion in direct foreign funds were put into use, up 13%. Import & Export Amount in 2004 1154.8 US$ Billion 593.5 561.4 36% 36% 35% Total Import Export

The Economic Development of China, Europe and Hungary Achievements in 2004 Imports and exports between China and Europe reached US$ 211.4 billion last year, a rise of 30% over the previous year. 84% of which or US$177.3 billion are with Europe Union, up 34% over the same time of previous year. Europe Union has become the first trade partner of China .

The Economic Development of China, Europe and Hungary Achievements in 2004 After China entering WTO, some enterprises of Europe Union have full confidences in China and put large foreign investments into China. China’s high-tech scientific technology enterprises also establish their factories, marketing centers and research institutes in EU. More closely cooperation in advanced technology.

The Economic Development of China, Europe and Hungary Friendship Relation with Hungary Traditional friendship with Hungary. Hungary is also one of the earliest countries that established foreign relations with China. In May, 2004, Hungary joined EU formally, which provides a bigger, integrated and stable market to China. Hungary is the first tourist country for Chinese people in Middle-Europe countries. China’s Bank also establishes the first branch in Hungary, which also the first one in Middle Eastern Europe. Hungary has become China’s biggest trade partners in Middle-Eastern Europe for three years. China becomes the biggest trade partner of Hungary in Asia.

The Economic Development of China, Europe and Hungary Trade Relation with Hungary In 2004, the amount of bilateral trade was up to US $ 3.1 billion; an increase of 19% over the preceding year. It should be noticed that the trade amount of China and Hungary accounted for less than 0.3% of that of China’ imports and exports. We are fully confident that the economic trade relations between China and Hungary in the future will leap on a new stage based on cooperation in the field of mechanical products, processing products and high-tech technology.

Prospects The Economic Development of China, Europe and Hungary For years, China has exerted to enhance carrying capacity for Europe-Asia Continental Bridge and has made great contributions both in train speed-raising and shortening traveling time. Currently, China has put large investments into transit transport for Europe-Asia Continental Bridge and for expanding carrying capacity of Lianyungang-Arlashankou corridor in order to make overall carrying capacity to a high level.

Prospects The Economic Development of China, Europe and Hungary China will continue to pay great attention to improving transport quality for Europe-Asia Continental Bridge and speeding up its infrastructure construction. The economic trade relations between Asia and Europe will be certainly improved following the economic globalization process. We firmly believe that the corridor of China’s sections in Europe-Asia Continental Bridge will play more and more important part in developing economic trade relations between China and Middle Europe countries.