China Plans $13 Billion Xinjiang-Tibet Railway Linking Northwest, Southwest

China is set to begin construction this year on the Xinjiang-Tibet Railway, a strategic 2,000km rail line linking Hotan in northwest China’s Xinjiang region to Lhasa in Tibet, forming a crucial artery connecting the country’s northwest and southwest. The project is overseen by the newly established Xinjiang-Tibet Railway Company, fully owned by China State Railway Group, with a registered capital of approximately $13.2 billion. This railway is part of a larger plan to develop a 5,000km plateau rail network centered on Lhasa by 2035, complementing existing and planned lines connecting Tibet to Qinghai, Sichuan, Yunnan, and Gansu provinces. The railway will traverse challenging terrain, including permafrost and sub-zero conditions, and is expected to enhance economic integration and strategic connectivity across the region. Besides railway construction, the company’s business scope includes real estate development, tourism, catering, accommodation, and international project contracting. The launch of this project coincides with increased geopolitical sensitivities along the India-China border, as the railway route runs near contested areas, reflecting China’s broader infrastructural and strategic ambitions in the region.