One of the biggest problems facing crowded cities today is transportation. If there is no existing subway or train system, building one can be extremely cost-prohibitive, not to mention disruptive to existing transit systems. The Shenzhen Hashi Future Parking Equipment Company has an idea that could address the issue at a tenth of the cost of installing a subway. It’s a train that straddles the existing highway.

While the train looks intimidating at first, it’s actually quite smart. Unlike a subway, which puts trains underneath roads, Shenzhen’s design requires minimal infrastructure, using the above-ground routes already constructed. Presumably, it requires only tracks on either side of the road to operate, and would run on solar and grid electricity. The cost for building it is estimated at 10 percent that of building an equivalent subway.

China has already commissioned a test section of 115 miles of track in Beijing’s Mentougou district to begin later this year. It will be interesting to see how it works out.

BusinessWeek has a great article explaining China’s investment in the oil fields of Iraq.

BP is the largest partner in the venture, but only by a dipstick: It has a 38% stake, while the Chinese hold 37% (the rest is owned by an Iraqi company). The media focus has been on BP’s decision to take up the Rumaila challenge for a low fee of only $2 for every barrel the venture produces. But the more important story could be China’s role. “CNPC’s involvement brings together the country with the most rapid growth in energy demand in history with the country that plans the greatest buildup of production capacity ever,” says Alex Munton, an Iraq specialist at Edinburgh-based oil consultants Wood Mackenzie.

There’s also some interesting information about China’s commitment to training workers who can work in the oil industry.

China is the low-cost provider in the industry. “As a general rule of thumb, Chinese management and labor costs are about one-third if not one-fourth of Western costs,” says Gao, the ex-CNOOC executive. Nine colleges and universities focus exclusively on oil studies in China: “The Chinese treat the industry as a life-and-death issue,” says Gao. The Western oil industry’s workforce is aging rapidly. “Analysts always mention that the oil majors face personnel shortages,” says Xu Xiaojie, an independent oil and gas adviser in Beijing. “In China we have a surplus.”

The Iraq ventures still face formidable obstacles—sectarian strife, corruption, and government instability, among them. The Iraqis also may not welcome large numbers of Chinese to their fields. “Yes, bringing in low-cost engineers is China’s advantage,” says Trevor Houser, a partner at the Rhodium Group, a New York-based research firm that studies India and China. “But that has created tensions [elsewhere]. Look at Zambia, where an election was pretty much fought over China.”

It will be interesting to see this play out.

Blogs covering China get venture capital funding

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