China railway restructuring: Analysis on effective competition

The restructuring of railways in the world started from 1980s. Every country broke monopoly, introduced competition as the aim of restructuring and put various kinds of restructuring models into practice. Though the restructuring of the world railways have been carried out for decades, China railway still maintains the railway bureau model in the charge of the Railway Ministry. Based on the background, the paper makes an analysis of China railway restructuring and building an effective competition. The paper believes that China railway is not qualified to introduce internal competition at this stage. It would be better to encourage external competition in a certain period before the time is proper to build internal competition, which would be more accordant with the actual situation of China railway.