On June 9, US railway firm XpressWest made unilateral announcement that their joint venture with China Railway International (CRI) USA have been terminated.

This is just yet another latest example of the setbacks faced by the China Railway when venturing abroad. Having considered these backgrounds, we recommend China Railway to adjust their strategy when 'going abroad'.

Externally, China Railway should change their overly eager attitude that they are willing to close the deal without any regard to the cost of business. China Railway should instead proactively fight for the project by taking the cost of business into consideration.

Internally, in order to avoid massive overcapacity in high-speed rail sector, China Railway should cut overcapacity modestly by slowing down the manufacturing of high-speed rail.