Chinese Railway Goes to Britain

Chinese rail firms are on course to win the contract to operate HS2 trains because domestic bidders are overwhelmed with problems, it was reported last night.

MTR, which runs the rail network in Hong Kong, and Guangshen Railway Co, part of the Chinese state rail company, are the frontrunners to operate the 220mph trains, sources told the Times.

The shortlist of three also includes two British-led entries - one led by First Group and another from a consortium involving Virgin.

But the British firms are beset with crises and are reluctant to burden themselves with the financial risk that would come with winning the tender, the newspaper added.

First Group's chief executive resigned last month amid reported losses of ￡326million, and Virgin Trains was forced to hand back control of the east coast mainline last Sunday after overbidding for the franchise.

The news is likely to cause concern over the security implications of involving the Chinese in such a project.

Government support for the Hinkley Point nuclear power plant was delayed by Theresa May due to apprehension about China's role in Britain's nuclear industry.

And MPs have also expressed concern after Chinese investors acquired London-based data storage firm Global Switch.