China Makes Immense Investments in Railroads, Highways & Airports

Some of the most ambitious transportation infrastructure investments the world has ever seen are taking place in China. Chinese companies are manufacturing state-of-the-art high-speed passenger rail equipment, and the Chinese have a joint venture with Airbus to manufacture passenger aircraft within China. They have also developed their own jet, the COMAC C919 for airline use. About 20+ aircraft were in service as of late 2025, operating limited routes, with a major route being Shanghai to Hong Kong. The COMAC ARJ21 is actively flying in commercial service, with over 100 delivered by early 2026, primarily within China. The 90-seat regional jet is operated by major Chinese carriers like Air China and Chengdu Airlines and has expanded internationally with Indonesia’s TransNusa Airlines. Transportation use of all types is soaring in China, including the movement of passengers and freight by air, rail and highway.

In order to boost economic growth within the interior of the nation, China has been forced to boost investment in rail systems. These railways are often capable of running above 250 km per hour.

China’s Belt and Road Initiative (BRI, sometimes referred to as “Silk Road”) is an ongoing project of an enormous network of highways, railways, energy grids and port facilities that could connect dozens of countries in Asia, Africa and Europe. The Asian Infrastructure Investment Bank (AIIB) raised $1.7 billion in capital for the project, in addition to a $40 billion Silk Road Fund set up by the Chinese government. This ambitious funding and development project has stirred up controversy. Much of the funding has been provided to underdeveloped nations, which are encouraged to create major infrastructure projects. The funds were often provided in the form of loans, and the construction fees are often paid to Chinese firms. It may look good on paper, but in practice, some nations have had significant problems keeping up payments on the loans and may have been too ambitious with their borrowing. For example, in the nation of Sri Lanka, a Chinese state-owned operator took control of a port after the related loan went into default. BRI is now focusing more on smaller, less costly projects that involve less risk.

China’s largest cities are home to some of the world’s newest and most advanced airports. Highways and light rail leading to the airports have also been extensively improved and modernized. The Beijing Daxing International Airport is the world’s largest terminal at 7.5 million square feet. It is expected to handle more than 100 million passengers by 2040. The facility has eight runways and an expected annual capacity of 40 million passengers initially. The airport features a “food street” that offers a wide variety of Chinese and foreign dishes, a massive indoor playground for children, spas, workout facilities with showers on a pay-per-hour basis, free Wi-Fi for all, and a variety of hotels within walking distance of gates.

Airbus and two of China’s major aviation companies, AVIC 1 and AVIC 2 have extensive, long-term joint ventures and industrial partnerships. Major collaborations include the Airbus Tianjin A320 Family Final Assembly Line, A320 fuselage equipping projects and partnerships in helicopter manufacturing, forming a key part of Airbus’s supply chain in China. Boeing has a significant presence in China, including a major 737 MAX Completion and Delivery Center in Zhoushan.

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