From Mu Chunshan in The Diplomat
China’s Railways Ministry isn’t like other ministries – indeed, it has its own security, prosecution and judicial system. It also has its own nursery, primary and secondary school, and even a university. Land within a few hundred meters of the tracks is considered within the ministry’s jurisdiction, and it can develop these areas by building residential or office buildings or hotels. Some of the heads of the railways bureaus in smaller cities hold a status not far off the mayor in these places.
In 2005, there was talk here that some reforms might take place, including merging the transport ministry with the railways ministry, which would have greatly reduced the latter’s power. However, following strong protests from Liu Zhijin – the former railways chief who was sacked in February after being found guilty of corruption – the plan was shelved.
One of the privileges that the railways ministry enjoys is that it can issue corporate bonds, short-term bonds, medium-term notes and other financial products – all under the government’s name. However, this latest accident has raised real questions about its ability to continue on its current path.
The prevailing view over Liu’s sacking is that it was done because the ministry had become too powerful, leaving few checks on senior officials. This power had left Liu to act with virtual impunity, seriously undermining the public images of President Hu Jintao and Premier Wen Jiabao.
http://the-diplomat.com/china-power/2011/08/01/chinas-troubled-railways/.
