XpressWest, a US private venture for construction of a high-speed rail line between Las Vegas and Los Angeles, announced that the deal with China Railway International had been terminated, the Los Angeles Times reported on Wednesday.
According to the company’s representative, this measure has been caused by “difficulties with timely performance and CRI’s challenges in obtaining required authority to proceed with development activities”.
The issue concerns primarily the requirement of a federal government that high-speed trains must be produced in the USA. Meanwhile, high-speed trains are not manufactured in the USA, says the company’s statement.
XpressWest formed the joint venture with China Railway International last September, investing $100 million into the project.
The news has become a blow to China, which hoped the project would help it enter the U.S. high-speed rail market. At present, CRI’s representatives aren’t available for comment.