The Chinese state-owned enterprise, China Railway Fifth Bureau Group Co., Ltd. (referred to as “China Railway Fifth Bureau”), has been ordered to suspend operations and rectify for 180 days by the Ministry of Housing and Urban-Rural Development. The specific reasons for this action remain unclear. Analysts suggest that it may be due to losing support from higher-ups, but there seems to be some leeway in the handling of the situation. Over the years, many construction-related state-owned enterprises in China have been plagued by issues such as shoddy construction projects.
According to a report by China’s Economic Reference News on January 8th, the national construction market supervision platform recently disclosed that the China Railway Fifth Bureau was ordered to suspend operations and rectify for 180 days by the Ministry of Housing and Urban-Rural Development. The decision was made on December 16, 2025, and the suspension is effective until June 14, 2026. During this period, the company is prohibited from taking on new construction projects as the general contractor with special qualifications. The specific reasons for this action have not been disclosed.
Attempts to contact China Railway Fifth Bureau through the contact information provided on their official website were unsuccessful.
This is not the first time that the company has faced scrutiny in recent years. In October 2024, a sub-company of China Railway Fifth Bureau, China Railway Fifth Bureau Group Mechanization Engineering Co., Ltd., failed to comply with safety regulations during construction in the security protection zone of seven springs on the Geku Railway, resulting in damage to cables and causing a railway traffic incident. On April 10, 2025, the Lanzhou Railway Supervision Administration imposed a fine of 60,000 RMB on the company.
Commentator Li Lin mentioned that under China’s authoritarian system, state-owned enterprises at the central level are often protected and not easily subjected to public penalties, as they are shielded by higher-ranking officials. The fact that action is being taken now may indicate a shift in the political landscape. The 180-day suspension without specific reasons suggests that there is still room for maneuvering. Therefore, it cannot be assumed that the authorities are taking decisive action just because they are addressing the situation.
According to the official website, China Railway Fifth Bureau is a key member enterprise of China Railway Corporation, founded in 1950 as the Fifth Engineering Bureau of the Ministry of Railways. In 1999, it was restructured as China Railway Fifth Bureau Group Co., Ltd., overseeing 18 subsidiary companies, 7 regional headquarters, 33 operational branch companies, 18 overseas branch offices, and a design research institute. The company is mainly involved in domestic and international construction projects, including investment, design, construction, and operation management.
It is worth noting that “China Railway” typically refers to China Railway Group and China Railway Construction Corporation, each of which has multiple engineering bureaus (such as China Railway First Bureau to Tenth Bureau under China Railway Group, and China Railway Eleventh Bureau to Twenty-fifth Bureau under China Railway Construction Corporation), totaling to 25 numerically named engineering bureaus, as well as specialized bureaus for bridges, tunnels, electrification, and more.
Chinese state-owned construction enterprises have long been plagued by negative incidents related to project quality.
Just last year, on August 22, a steel cable broke at the construction site of the Jiatuzha Yellow River Extra-Large Bridge on the Qinghai section of the Chuanyin Railway, resulting in 12 deaths and 4 missing persons. An official announcement revealed that the bridge was being constructed by China Railway Bridge Bureau Group Co., Ltd., a wholly-owned subsidiary of China Railway Group. The incident occurred during the installation of auxiliary steel beams when the front end of the hoist cable tower suddenly failed.
On March 28, 2025, a skyscraper in Bangkok, Thailand collapsed during a powerful earthquake. The building, constructed starting in 2020, was built by China Railway Group’s subsidiary, China Railway Tenth Bureau (Thailand) Company.