China will build a 430km/h magnetically levitated railway for CNY22bn ($3bn).
The route, part of China's high-speed railway network, will run between Shanghai and Hangzhou.
The line is scheduled for completion in 2014, according to bangkokpost.com.
China, which is planning to construct 36 passenger-dedicated high-speed railways with a total length of 13,000km by 2012, is expected to further extend its network to 18,000km by 2020.
The country currently has 6,552km of high-speed railways.
China’s total rail investment is expected to reach CNY2tn ($293bn) by the end of 2010.