A $33 billion high-speed rail line connecting two of the world's largest cities made its debut on 30 June. The Beijing-to-Shanghai high-speed train has been operating on a trial basis since May, and is finally ready to open to the general public, reported constructiondigital.com. This line is expected to help improve China's overloaded transportation system. The country has been pursuing several large-scale infrastructure projects to help cut down on airport delays and cancellations. However, the entrance of the new high speed rail line has led some airlines to slash ticket prices by as much as 65 percent amidst concerns that the new rail line could cause a negative effect on the air travel industry. One-way tickets prices will range from US$ 63-270 compared to about US$ 200 for a flight on an airplane between Beijing and Shanghai. This new high-speed rail line is opening a full year ahead of schedule despite delays in construction as a result of safety concerns. Construction began in April 18, 2008. Once operational, the new Shanghai-to-Beijing line will cut the travel time between the two cities in half to under five hours. The rail line will be capable of carrying about 80 million passengers a year, twice the current capacity for the 1,318 kilometre route. The line carries 90 pairs of trains every day, including 63 pairs that run at 300 kilometers per hour, which can reach the terminal in 4 hours and 48 minutes, and 27 pairs that travel at 250 kilometers per hour, which can reach the terminal in 7 hours and 56 minutes.

A major European financial services company warned that signs point to China's recent construction boom hitting a wall soon. French investment bank Societe Generale released a report warning that demand for construction services and products was softening, signaling a potential downturn after a year of substantial growth, reported constructiondigital.com. "We believe the current pace of construction activity is unsustainable and a painful adjustment will come sooner or later," an analyst for Societe Generale stated. Among the signs that Societe Generale pointed to in its reports was sales for excavators, which had fallen by 65 percent in May compared to the same month last year. Bulldozers and loading equipment also took a dip compared to May 2010. The report also stated that China's cement consumption was unsustainable and outpaced healthy levels. The country accounted for 55 percent of the world's cement consumption during 2010. Societe Generale believes China is setting itself up for a construction bubble that won't last. Last year China's construction industry received a huge boost in the housing sector as members of the rural population moved into cities. Across China about 1.8 billion square meters of new apartments and condos were built, enough room to house 60 million people. Construction in 2011 has the country on pace to add housing for an additional 300 million residents by 2015, including 36 million units of affordable housing as part of the government's five-year plan. According to the International Monetary Fund's estimates this amount of housing would match China's projected urban needs in 2030, meaning the country is building more housing over the next four years than it will need in the next two decades.

As reported news agency Xinhua, construction of a tunnel that will traverse Trola Mountain in southwestern Sichuan Province began on June 1. At an altitude of 4.24 to 4.38 kilometers, the Trola Mountain tunnel will be the world's highest on a highway. As part of Sichuan-Tibet Highway that links Chengdu, Sichuan in the east with Lhasa, Tibet in the west. The 7-kilometers tunnel will shorten travel time across the mountain from more than two hours to only about 10 minutes, construction manager Li Ming said. He also added that, workers must first build an approach that is 14.06 kilometers long on the east side of the mountain. The tunnel is scheduled to be completed in four years with an investment of $US173 million. The 2,415 thousand kilometers Sichuan-Tibet highway is considered one the world's most deadly as it traverses a dozen rivers and 14 mountains with altitudes of 4 to 5 kilometers. China has spent nearly $ US 21.6 billion on development of 188 key projects in Tibet between 2005 and 2010, and key among them are projects that link Tibet to the rest of China. And the governments of Sichuan and Tibet are planning to build more tunnels on several key mountains to improve traffic.

During a joint Australia-China business forum on April 26 in Beijing, a prominent Chinese leader announced that the country plans to take a more active role in Australia's economy. Chinese Vice Premier Li Keqiang announced that China wants to play a key role in the construction of Australia's infrastructure. In construction sector Li Keqiang pointed to port and rail construction in Australia as potential areas that China could have greater involvement in. The Australian government is also planning an expansion of its National Broadband Network and Keqiang believes Chinese construction companies could play a role in the project. Australia is also in dire need of key transport infrastructure, with the existing network unable to cope with the rapid increase in export demand for the country's mineral resources. "We would encourage capable and responsible Chinese companies to take part in Australia's construction sector," said Mr. Keqiang. China's construction companies and equipment manufacturers have built up a presence overseas, predominantly in developing countries where, backed by cheap funding from Chinese banks, they are building much needed infrastructure. But despite Australia's need for infrastructure, China's involvement in the sector may still face some roadblocks. Chinese construction companies operating in the developing world often bring in their own labor, causing some tension in the local communities in which they operate. Many countries are now turning to China, which has accumulated huge foreign exchange reserves ($ 3.05 trillion- I qr., 2011.), and which quite willing to invest in various projects abroad. However, many appreciate such an active economic expansion not only as a cost-beneficial cooperation, but also as a sharp increase in China's political influence in these countries and in the world at large.

Last year China passed a law that allows individuals or companies to hire uninhabited islands off the country's coast. In April China's Ocean and Fisheries Bureau announces the list of the 176 uninhabited islands, part of which can be offered for rent. These islands are to everyone's taste - most have an area of 500-1.000 square meters. There are islands at the north-eastern Liaoning province and by the tropical island of Hainan. The islands that are not classified as protected national areas and with the area more than 500 square meters can be rented for 50 years. There is no legal reason why foreigners or foreign companies cannot hire one for themselves. The prices for hiring an island has not been confirmed yet, most likely it will be set for each particular case and the closer the island to the shore the more it will cost. In case there are several bids for one island, the owner will be chosen through the auction by a high bidder. Those who wish to rent the island will need to submit a detailed plan for the future use. Officials are also interested in how the owner will decide the matter of waste disposal and landscaping of the island. Ocean and Fisheries Bureau continues an inventory of all the islands, which belong to China. According to data of 1998, China owns about 7 thousand islands with the area of more than 500 square meters. At the end of last year marine patrol services found more than 30 cases of illegal exploitation of the coastal islands. China's desire to use the offshore islands efficiently is quite logical and economically reasonable. However there are a lot of problems concerning with islands development, and first of all - high cost for the construction works (material supply and etc.), as well as providing drinking water, electricity and so on.