Chinese railways reform is full of opportunities and challenges and has attracted the world’s attention since the end of the twentieth century. This chapter analyses the railway reform in China from 1980 to 2015. Section 1 introduces the status and characteristics of Chinese railways. Section 2 reviews the process of railways reform, which can be divided into five stages. The first stage is the decentralization and economic contract responsible system during the early years of “open door and reform” policy (1980_1990). Second, Chinese railways took a market-oriented reform in the beginning of the 1990s. The third stage is the research and the exploration of the railway system reform from 1996 to 2002. The fourth stage is the reform in the period of a large-scale construction stage starting from the year of 2003. The fifth stage is the separation of the Ministry of Railways’ government functions from enterprises in 2013. Finally, section 3 concludes the study.