China is expected to put hyperloop - or ultra-high speed pipeline maglev system - into operation by 2035, South China Morning Post reported on Sunday.
The 150km-long in-vacuum tunnel is aimed to allow maglev trains to travel at speeds of up to 1,000km/h, the report said.
Several major cities were considered for the mega project and the first hyperloop train line is likely to be built between Shanghai and Hangzhou.
China is already a leader in high-speed rail technology and investing in hyperloop technology could help maintain its position as a global leader in transport innovation, the report said, citing an assessment team.
The assessment team is led by Zhang Yunjiao, a senior engineer with the State-owned China Railway Engineering Design and Consulting Group in Beijing.
China's high-speed rail service has reached 42,000 kilometers, ranking first in the world by the end of 2022.
With characteristics including high security level, low energy consumption, noise and pollution levels, the hyperloop would travel 10 times faster than traditional high-speed trains and five times faster than commercial passenger planes.