Perception of Chinese Respondents Towards the Impact of China’s High-Speed Rail Development on International Economy

Perception of Chinese Respondents Towards the Impact of China’s High-Speed Rail Development on International Economy

Zhang Pengquan* & Doris Padmini Selvaratnam

Faculty of Economics and Management, Universiti Kebangsaan Malaysia

*Correspondent Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.9020358

Received: 14 February 2025; Accepted: 18 February 2025; Published: 25 March 2025

ABSTRACT

This paper examines the development of China’s high-speed railway and its impact on the international  economy.  Through  questionnaire  surveys  and  statistical  analyses  of  108 respondents, the paper verifies the role of high-speed rail in enhancing the efficiency of international trade, attracting foreign direct investment, and promoting technology export. The findings show that the development of China’s high-speed rail improves logistics and transport efficiency, reduces trade costs, and significantly boosts the volume and flow of trade between China and other countries. As a modern means of transport, high-speed rail connects  more  global  markets,  becomes  an  important  bridge  in  international  trade,  and enhances China’s position in the global economy. The construction of high-speed railway projects has significantly increased foreign direct investment (FDI) in the regions along the routes  and  injected  new  impetus  into  local   economic  development.   China’s  successful implementation of high-speed railway projects in the international market, such as the Yavan high-speed railway and the Mocha high-speed railway, has demonstrated China’s advanced high-speed railway technology and management capability and has gained wide recognition and positive evaluation from the international community. The export of high-speed railway technology has not only enhanced China’s competitiveness in the international market but also promoted the development and progress of global high-speed railway technology.

Keywords China, high-speed rail, development, international economy

BACKGROUND

After more than 20 years of fast expansion, China’s high-speed railway has emerged as the world’s most advanced high-speed railway network, operating over 40,000 kilometers and holding the top spot globally. With its comprehensive nationwide coverage, the high-speed railway network has created an “eight vertical and eight horizontal” backbone structure that connects  significant  economic  zones  and  heavily  inhabited  places,  therefore  improving interregional  transit  convenience  and  economic  relations.  In  terms  of  speed,  efficiency, safety,  and  environmental protection,  China’s  high-speed railway has  achieved  incredible feats via independent research and development as well as ongoing technical innovation. With the launch of the Fuxing high-speed train, China has cemented its leadership in high- speed railway technology. The train’s exceptional design speed, operational stability, and ride comfort   have   significantly   enhanced   high-speed   railway   operations’   punctuality   and passenger  satisfaction.  In  addition  to  substantially  accelerating  urbanization  and  regional economic development, the building and maintenance ofHSR has also dramatically increased coordinated regional economic development.   Simultaneously, China’s high-speed railway has  actively  engaged  in  international  projects,  including  the  Moscow-Kazan  high-speed railway  in  Russia  and  the  Yavan  high-speed  railway  in  Indonesia.  These  projects  have showcased China’s high-speed railway’s advanced technological, operational management, and  standardization  capabilities  to  a  global  audience while  also reinforcing the  country’s competitiveness and influence in the global market.

China now possesses the most advanced high-speed rail network in the world, and it is a major  factor  in  the  advancement  of world  economy.  In  addition  to  enhancing  domestic transportation within  China,  its vast network coverage  and  cutting-edge technology have served as a valuable model and source of expertise for other nations and areas. China has successfully  established  the  largest  high-speed  railway  network  in  the  world  through independent research and development, innovation, and high-speed railway technology. This has not only increased the effectiveness of domestic transportation but also shown China’s leadership in the development of modern infrastructure.

Encouraging international trade and investment: By making logistics and transportation more rapid and effective, cutting down on costs, and shortening travel times, the expansion and upgrading of the high-speed rail network has encouraged the expansion of international trade and investment. High-speed rail, a contemporary kind of transportation, may link more global markets and serve as a vital bridge in international trade.

Encouraging cooperation and technology export: China has proven its strong ability to export technology with the successful implementation of its high-speed railways in the international market, such as the Yavan high-speed railway in Indonesia and the Moscow-Kazan high- speed railway project in the Russian Federation. This not only increases China’s dominance in the world of high-speed rail technology, but it also  encourages international technological advancement and exchanges by fostering cooperation in the development of high-speed rail infrastructure and technology with other nations.

Raising the standard of infrastructure construction worldwide: China’s high-speed railway, with its cutting-edge technology and proven track record, can serve as a model for other nations and regions, offering valuable insights and lessons for infrastructure development worldwide.  More  nations  and  areas  can  be  encouraged  to  achieve  sustainable  economic development and transportation modernization through international cooperation on high- speed rail projects.

Overcoming the obstacles posed by globalization: In the context of globalization, having an effective transportation network is crucial for overcoming the obstacles posed by it. China’s high-speed railway can significantly contribute to the global response to climate change, the reduction  of  carbon   emissions,   and  the  achievement  of  the   sustainable   development objectives because it is an effective, ecologically friendly, and green form of transportation.

Research Questions that this paper seeks to address are:

1. how has the development of China’s high-speed railway contributed to domestic economic growth?
2. how has the development of China’s high-speed railway changed China’s trade relations with other countries?
3. whether the development of China’s high-speed railway has attracted more foreign direct investment

We will investigate how China’s development of high-speed rail has affected foreign direct investment, trade relations with other countries, and domestic economic growth. Using a questionnaire survey, we first examine how the building and operation of HSRs contribute to the GDP, taking into account increases in employment and infrastructure spending. Second, it looks into how China’s trade relations with other nations have evolved as a result of the HSR, particularly how this has affected trade volume and flows. In the end, it looks at whether the HSR has drawn additional FDI and examines how it has affected foreign-owned companies’ investment climate and location.

The outcome of this paper will be important as:

1. A reference for policymaking: The development and operation of high-speed rail (HSR) has been heavily funded by the Chinese government, and policymakers must comprehend the  financial  returns  on  these  expenditures.  This  study  will  offer empirical evidence for governments and policymakers in the fields of HSR planning, infrastructure investment, and international collaboration by quantifying the effects of HSR  on  domestic  economic  growth,  international  trade  ties,  and  foreign  direct investment. In particular, the government can benefit from the findings by having a better understanding of the financial advantages of HSR projects.
2. International Cooperation    and   Exchange:    As    China’s   high-speed    railway technology continues to advance and its global impact grows, the country’s exports of this technology have taken on a significant role in its foreign cooperation efforts. This paper’s research will show how the export of HSR technology affects other nations’ economic growth, particularly in terms of employment, local economic expansion, and  technological  advancement.  This  article  will   facilitate  China’s  international cooperation and exchange in the field of HSR and advance the global development of HSR  technology  by  analyzing  the  opinions  and  assessments  of  the  international community regarding China’s output of HSR technology.
3. Public Perception:   This   article   will   gather   and   analyze   public   and   foreign perspectives on China’s exports of HSR technology using questionnaire surveys. This section of the study is extremely important because it not only sheds light on how the world community views China’s efforts to develop its high-speed rail system, but it also offers insightful criticism that China can use to advance and enhance its high- speed   rail    technology    export   program.    In    the   process    of   promoting    the internationalization of HSR technology, China will be better able to shape its foreign image and increase the acceptability and acknowledgment of its technological output if it has a better understanding of public perceptions and attitudes.

LITERATURE REVIEW

Impact of HSR on Economic Growth

Transportation financing is expected to boost economic productivity and economic growth. Traditionally,  people  have  known  that  transportation  infrastructure  improvements  can promote economic growth in the region. In the classical location theory, the emphasis is on the role of transportation infrastructure in economic development. High-speed railways have brought market structure effects, labor pool effects, knowledge spillovers, and technological innovation effects to cities along the line [18]. High-speed railways may profoundly change China’s regional economy and people’s production and lifestyles.

The rapid development of high-speed railways has dramatically improved the connectivity between  regions  and  strengthened  the  economic  connection  between  markets.  The  rapid development of China’s HSR has shortened people’s travel time, improved travel efficiency, and increased economic and personnel communication between different regions and cities. There  is  a  positive  impact  of  transportation  infrastructure  on  economic  growth,  trade, resource  flow,  employment,  and  other  aspects.  It  seems  that  transportation  promotes economic growth, increases regional trade integration, and improves national income level, which creates a spillover effect. As one of the most crucial transportation infrastructures between cities, the high-speed rail may have a substantial economic impact on the cities along the line and has a specific impact on the economic gap between cities. As efficient transportation infrastructure, high-speed rail (HSR) has affected cities’ economies along the route directly and indirectly and had a considerable impact on cities’ economies.

Impact of HSR on Quality of Place

In Europe, the development of high-speed railways has dramatically reduced travel time between cities and reduced space. In addition to promoting the flow of human resources, natural resources, capital, and technology, high-speed railways will also accelerate the flow of knowledge,  information  and  promote  closer  economic  and  personnel  links  between regions.  High-speed  railways  will   significantly  reduce  passengers’  time   on  travel   and accelerate human resources flow. The implementation of HSR has led to the development of the city around the railway station and is said to promote its economic development; most notably, it has led to the reconstruction of many urban  station areas. Cultural amenities, crime, green spaces, and congestion are a few of the factors determining the local quality of place.  Disciplines  including  public  health,  psychology,  economics,  and  sociology  have developed tools for analyzing the QOL experienced by individuals and groups. High-speed railway stations may impact central cities’ economic activities and medium-sized surrounding cities. The economic activities gradually transfer from the central city to the surrounding small cities.

More and more studies have examined the potential impact of high-speed rail in China from various aspects, including accessibility , regional development , and the real estate market. High-speed rail can significantly improve the accessibility of Chinese cities. The time–space effect of the “shrinking continent” of high-speed rail will  significantly  change  economic geography, forming a corridor of employment, housing, and innovation, and individuals and businesses  will  be  distributed  densely  around  the  site.  As  an  efficient  transportation infrastructure, high-speed rail (HSR) has affected cities’ economies along the route directly and indirectly and had a considerable impact on cities’ economies.

Theoretical Basis For High-Speed Rail Perception

Technology  Acceptance  Model,  TAM : The  model  points  out  that  the  acceptance  of technology is affected by perceived usefulness and perceived ease of use. High-speed rail technology is more likely to be perceived by the public due to its high efficiency, safety and convenience.

Diffusion of Innovations Theory：This theory holds that the dissemination and acceptance of new technologies  will affect people’s cognition and behavior. As an innovation, the popularization and promotion of high-speed rail can enhance the public’s cognition and acceptance of high technology.

RESEARCH HYPOTHESIS

H1:  The  development  of  China’s  high-speed  rail  has   significantly  promoted   domestic economic growth

High-speed rail is a convenient and efficient form of transportation that has a major positive economic  impact.  In   addition  to   directly  generating  a  significant  number  of  jobs,  its construction and operation also indirectly stimulate the growth of adjacent businesses like manufacturing,  services,  and  construction.  During  the  XRL’s  development  and  operating phases, regional infrastructure investment rises and transportation conditions are improved, increasing  GDP.  As  a  result,  the  cities  along  the  XRL  routes  gain  economically,  which encourages the integration and coordinated growth of the regional economy.

H2: China’s high-speed rail development has improved China’s trade relations with other countries

By linking key trade corridors, high-speed rail not only makes domestic travel easier for citizens  and  businesses,  but  it  also  improves  China’s  trading  relations  with  neighboring nations. The construction of high-speed rail contributes to lower logistical costs and more effective transportation, which raises the level of competition in global trade. High-speed rail is  anticipated to improve trade  structure  and  encourage  an  increase  in trade volume  and flows.

H3: China’s high-speed rail development attracts more foreign direct investment (FDI)

The development of XRL can improve the investment environment and enhance regional accessibility and economic vitality, making it more attractive to foreign enterprises. Regions along  the  XRL  routes  have  attracted  more  foreign-funded  enterprises  to  set  up  offices, factories or R&D centres in these regions due to the improved accessibility and logistics efficiency. The XRL project is expected to significantly increase FDI inflows.

H4: The international community has a positive attitude towards China’s high-speed rail technology exports

China has been encouraging the sale of high-speed railway technology worldwide in order to foster  international  cooperation  and  technology  exchanges,  as  its  high-speed  railway technology  continues  to  evolve  and  its  impact  grows  internationally.  The  international community is generally aware of China’s advanced high-speed rail technology and thinks that the country’s output of this technology benefits local economic development by, for example, enhancing  infrastructure,  increasing  transportation  efficiency,  and  spurring  the  growth  of related industries.

H5: High-speed rail projects have a positive impact on the quality of life and economic welfare of local residents

In  addition  to  altering  the  pattern  of regional  transportation,  high-speed  rail  has  greatly enhanced the standard of life and financial security of the communities along its path. It is anticipated that high-speed rail development and operation will enhance the ease of transit, reduce travel times, boost local economic activity and job prospects, and enhance quality of life. Additionally, there has been an improvement in the financial well-being of those living near the high-speed train.

RESEARCH METHODS

This position used a questionnaire to explore the impact of China’s high-speed rail on the international economy. We sought to gather particular data about the research topic by giving target participants  questionnaires  connected  to  the  study.  The  information  gathered  from these surveys offered insightful analysis and substantial data support, which enhanced the study’s claims of scientific validity

Subjects of Research

The participants in this study were over 18 years of age, which was chosen because they had a  good understanding  of  high-speed  rail  and  would  be  immediately affected by  the development of high-speed rail in China, which is closely related to the topic of this paper.

Information Gathering

In this paper, we used a questionnaire to collect data and the results were systematically collated and validated. The sources of our data collection came from different professions, in order  to  make  the   collection  more   diverse.  We  used   some  precautions  to   ensure  the legitimacy  and reasonableness  of the  collection process.  Because  they  are  crucial  to my research.

Information Gathering

Following collection, the information was meticulously sorted and cleansed to get rid of any incorrect or incomplete answers. For our dataset to remain intact, this step was essential. After the data had been cleaned, analysis was done to find important trends  and insights pertaining to the study hypotheses.

Analysis of Data

The information  collected  from the  questionnaires  and  interviews has been  appropriately coded and thoroughly checked, and has been successful in ensuring accurate representation of the data and good interaction with the following analytical tools. Descriptive statistics were used to carefully collate the economic impact of HSR development in China, the impact of HSR on international trade, and the impact of HSR on economic welfare and quality of life. Inferential statistics are used to investigate the relationship between explanatory variables and the final results. A variety of analytical techniques, including multiple regression analysis, have been used to improve these correlations, accuracy and clarity. By anonymising the data and storing it using a safe and secure method. Ensuring the confidentiality of all personal information obtained from the promising party, thus ensuring the privacy and identity of the participants.

RESULT AND DISCUSSION

The  statistical  analysis  of the  sample  book  data  in  this  study  is  done  using  IBM  SPSS STATISTICS 26  software. The primary  statistical analyses performed are multiple linear regression models, descriptive statistical analyses, and analyses of questionnaire data.

A total of 108 data points were collected, of which  35 were females, accounting for 32.4 percent. Seventy-three women accounted for 67.6 percent. The largest number of people were between 18 and 35 years of age, totalling 50 percent, and the smallest number of people were between 36 and 45 years of age, totalling 13 percent.

Questionnaire data statistics

High-speed rail construction is important to local economic growth

High-speed rail operations are important for infrastructure investment

High-speed rail development is important for trade flows between China and other countries

High-speed rail development is important for the volume of trade between China and other countries

Income Range Distribution

Importance of High-Speed Rail Construction for Local Economic Growth

Importance of High-Speed Rail Operations for Infrastructure Investment

Importance of High-Speed Railway Construction for Attracting Foreign Investment

Importance of High-Speed Rail Projects for Foreign-Invested Enterprises’ Location Decisions

Importance of High-Speed Rail Project Construction for Improving the Investment Environment

Importance of High-Speed Rail Technology to Public Perception

Importance of High-Speed Rail Technology Exports for China’s Economic Impact

High-Speed Rail Importance to the Quality of Life of Residents Along the Line

High-Speed Rail Importance to the Economic Welfare of Residents Along the Line

Descriptive Statistical Analysis

Pearson Correlation Analysis

Note:

• Significance levels: All values with ** indicate a significant correlation at p < 0.01 (2-tailed).
• N = 108 for all correlations.

Pearson’s  correlation  test  is  to  get  whether  the  two  variables  show  a  linear  relationship between the two variables, and at the same time to get the correlation coefficient between the independent variable  and  the  dependent  variable,  and  at  the  same  time  can  be  obtained through the algorithm of the correlation coefficient to determine whether it is significant, and at the same time to get whether it is positively correlated or negatively correlated, but also can further verify the linear correlation between the independent variable and the dependent variable.

As shown by the above Pearson correlation analysis results: High-speed rail construction is important to local economic growth and High-speed rail technology exports are important to China’s impact on the economic development of other countries. The correlation coefficient between  is  0.571,  p<0.01.This  independent  variable  is  linearly  related  to  the  dependent variable;

High-speed rail operations are important for infrastructure investment and High-speed rail technology exports are important to China’s impact on the economic development of other countries. The correlation coefficient between is 0.469, p<0.01.This independent variable is linearly correlated with the dependent variable

High-speed rail development is important for trade flows between China and other countries and High-speed rail technology exports are important to China’s impact on the economic development of other countries. The correlation coefficient between is 0.361, p<0.01.This independent variable is linearly correlated with the dependent variable

High-speed rail development is important for the volume of trade between China and other countries and High-speed rail technology exports are important to China’s impact on the economic  development  of  other  countries. The  correlation  coefficient  between  is  0.487, p<0.01.This independent variable is linearly correlated with the dependent variable

High-speed  railway  construction  is  important  for  attracting foreign   investment与High-speed   rail    technology   exports    are important to China’s impact on the economic development of other countries.The correlation coefficient between is 0.535, p<0.01.This independent  variable  is  linearly  correlated  with  the  dependent variable

The  high-speed  rail  projects  are  important  to  the  location  decisions  of  foreign-invested enterprises and High-speed rail technology exports are important to China’s impact on the economic  development  of  other  countries.The  correlation  coefficient  between  is  0.470, p<0.01.This independent variable is linearly correlated to the dependent variable

High-speed rail project construction is important to improving the investment environment and High-speed rail technology exports are important to China’s impact on the economic development of other countries.The correlation coefficient between is 0.408, p<0.01.This independent variable is linearly correlated with the dependent variable

Multiple regression model

Model Overview

ANOVA

4.4.2 Model Coefficients

Key Notes:

• Significance Level: p < 0.05 is marked with bold in the “Sig.” column.
• Tolerance & VIF: These values indicate multicollinearity, where VIF > 10 suggests a potential issue.

Based on the results of correlation analysis, it is shown that there is a significant positive correlation between each independent variable and the dependent variable, the impact of High-speed railway technology export on China’s economic development to other countries, so we choose to construct a multiple linear regression model.

According to the model profile, the R-square value of the model is 0.483, which indicates that the constructed multiple linear regression model has a good fit and can explain 48.3% of the actual problem of the dependent variable. According to the ANOVA ANOVA overall, the hypothesis test results of the regression model, showing F=9.047, P=0.000<0.001, indicate that the constructed regression model is statistically significant, and that there is at least one variable that has a significant positive impact on the decision-making of the impact of China’s high-speed rail development on the international economy.

Based  on  the  coefficient  results,  it  can  be  seen  that  only  the  impact  of high-speed  rail construction  on  local  economic  growth  p=0.000<0.001,   indicating  that  the   established regression  model  is   statistically  significant  and  at  least  one  variable  exists  to  have  a significant positive impact on decision-making about the international economic impact of China’s  high-speed  rail  development.  05,  there  is  a  significant  effect  on  the  dependent variable, all other have no significant effect on the decision-making, VIF are less than 5, there is no problem of covariance, from the results of the  figure, we can see that the regression equation of the model is: High-speed rail technology exports are important to China’s impact on the economic development of other countries = 0. 549+0.2*High-speed rail construction is important  to  local  economic  growth+0.088*High-speed  rail  operation  is  important  to infrastructure investment-0.12*High-speed rail development is important to China’s impact on the trade with other countries+0. 12*High-speed rail development is important to China’s impact  on  the  trade  with  other  countries+0.123*High-speed  rail  technology  exports  are important to China’s impact on the trade volume with other countries 0.123* Importance of HSR construction in attracting foreign investment +0.058* Importance of HSR projects to the location  decisions  of  foreign-invested  enterprises  +0.  056*  Importance  of  HSR  project construction  in  improving  the  investment   environment  +0.151*  Importance   of  HSR technology  to  public  perception”  +0.118*  Importance  of  HSR  to  the  quality  of  life  of residents along the routes +0.052* Importance of HSR Importance to the economic welfare of residents along the route

CONCLUSION

The development of China’s high-speed railway has not only significantly improved domestic transport efficiency, but also boosted economic vitality and employment in the regions along the route  and  contributed to  the  growth  of gross  domestic product  (GDP)  by  enhancing regional economic linkages and facilitating the flow of resources. In addition, high-speed rail improves logistics and transport efficiency, reduces trade costs, boosts trade volume and trade flows between China and other countries, and serves as an important bridge in international trade, enhancing China’s position in the global economy. At the same time, the construction of high-speed railway projects has significantly increased foreign direct investment (FDI) in the regions along the routes, injecting new impetus into local economic development.

China’s successful implementation of high-speed railway projects in the international market, such as the Yavan high-speed railway and the Mocha high-speed railway, has demonstrated China’s  advanced  high-speed  railway   technology   and  management   capability,  and  has received wide recognition and positive evaluation from the international community. The export of HSR technology not only enhances China’s competitiveness in the international market, but  also  promotes  the  development  and  progress  of  global  HSR  technology.  In addition, the construction and operation of high-speed rail has not only improved transport conditions,  but  also  significantly  enhanced  the  quality  of  life  and  economic  welfare  of residents along the routes.

In order to have a more comprehensive understanding of the development of XRL and its impacts, future studies could be conducted in assessing the long-term impacts of XRL on the regional economy, examining the differential impacts of XRL on the economic development of different regions, exploring in depth the contribution of XRL to environmental protection and sustainable development, and analysing the role of XRL technological innovations in driving the technological advancement in other areas. Based on the research results, policy recommendations on the planning and investment of HSR are provided to the government and  decision  makers  to  achieve  more  efficient  and  sustainable  economic  development. Through this paper, we demonstrate the significant impacts of China’s high-speed rail on domestic and international economies, and provide valuable references for future research and policy formulation.

ACKNOWLEDGEMENT

This paper results from an academic exercise for EPPE3996 funded by EP-2018-001 at the Faculty of Economics and Management, Universiti Kebangsaan Malaysia.

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