China plans to expand its rail manufacturing sector over the rest of the decade to a point where it predicts it will sell 650 billion yuan ($101.9 billion) worth of exports by 2020, reported Economic Information Daily citing a government plan.

Chinese high-speed trains
Chinese high-speed trains

A main driver of the industry’s growth is the One Belt, One Road government project. It’s China’s economic development framework for expanding trade and investment throughout Asia and into Europe and Africa.  The land-based component consists of the Silk Road Economic Belt and the water portion is the Maritime Silk Road.

As more nations seek to upgrade their transportation networks, China expects that the Belt and Road Initiative will increase its exports of high-speed rail technologies and related products.

Globally, the rail transit market is likely to grow 3.3% annually in the next five years, reported Economic Information Daily. Demand for vehicle equipment is projected to reach 53 billion to 61 billion euros.

The government plan, dubbed as the “roadmap for China’s manufacturing in key technology sectors by 2025” outlined industrial goals by each stage.

The country expects outbound sales of transportation equipment to further expand by 40% by 2025, when it holds a prominent position at the higher-end of global industrial chain.

China will focus on developing equipment including high-speed trains of its own standard, 30-ton-axle-load electric locomotives and high-speed surface transport, reported the newspaper.

Also, on Thursday, Saudi Arabia said it plans to enter into negotiations with China to join in the development of the One Belt, One Road project, according to al Arabiya News.

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