China moves up the exports value chain

It began operations in July 2015. The plant makes trains for the entire ASEAN region. It has annual production capacity of 100 rakes, including locomotives and light rail cars.

Zhou Qinghe, president of CRRC ZELC, said as the Chinese railway network expands, it is time for exporting technology, expertise and services.

"Because most countries in Southeast Asia have just kicked off construction of new railway lines, the demand for technological support from China is very high," said Zhou. "We can also share our experience in daily operations, maintenance and staff training."

CRRC ZELC, a subsidiary of China Railway Rolling Stock Corp, the largest train manufacturer in the country, has bagged 8 billion yuan worth of deals in five rail equipment and service projects in Malaysia, including a 200-kilometer high-speed rail line between Kuala Lumpur and the northern city of Ipoh.

The Chinese company now owns three subsidiaries in Malaysia. Around 90 percent of its employees are locals. Collectively, the subsidiaries make up the biggest rail transportation equipment provider in Malaysia, accounting for 85 percent market share.

Luo Chongfu, CRRC ZELC's vice-general manager, said even though export of trains is a profitable business, the company is trying to reach out to its arms for maintenance services, to ensure long-term gains.

Lan Lan in Beijing contributed to this story.