Guangshen Railway Company, which operates a high speed line between Guangdong and Shenzhen, is part of a consortium which has been shortlisted to run the UK's planned HS2 line, the UK government announced. It is the first Chinese company to be part of a shortlist for a British rail project.

Guangshen, a state-backed company, has joined forces with a group that includes Hong Kong Metro Operator MTR, accountancy firm Deloitte and WSP Parsons Brinkerhoff.

They are bidding to operate Britain's existing West Coast Line and afterwards the HS2 route between London and Birmingham.

Chris Grayling, the transport secretary, said: “The West Coast Partnership will support growth and better services on the West Coast main line while helping to ensure that HS2 becomes the backbone of Britain's railways.

“This will create more seats for passengers, improve connections between our great cities, free up space on existing rail lines and generate jobs and economic growth throughout the country."

Guangshen is a wholly-owned subsidiary of the state-owned Guangzhou Railway Group.

The short list for the project, in which the winner will work with HS2 to provide services on the 55.7 billion pounds high-speed railway, includes two other groups, the Department of Transport said.

They are a joint venture between First Rail Holdings and Italy's Trenitalia, called First Trenitalia West Coast, and a team called West Coast Partnership, comprising a joint venture between Stagecoach Group, Virgin Holdings and France's SNCF.

The HS2 line is due to start operating by 2026.