Thing about China's railway needs is that it has population density. That makes it a lot easier to charge a cheaper price for tickets that look affordable and worthwhile to passengers, and still turn a healthy profit for the operator.
If you have to rent a car on arrival, might as well fly.
The density of customers also has to be adjusted for affordability. Lots of Chinese will continue to use conventional trains, which have enormous capacity and cheap prices. Train station crowds in China can be epic.
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