The 180-mph passenger trains, which can carry 600 passengers, will begin operations in 2008 on the Beijing-Tianjin route.
The first three of the so-called CRH3 trains and key locomotive parts will be designed and manufactured in Siemens' plant in Krefeld-Uerdingen, Germany. The rest of the trains will be built in a Chinese plant in Tangshan, north China's Hebei Province.
"In the next 15 years, China will lay 12,000-km-long (7,200 miles) rail track for passenger trains. The signing of the deal marks another step of Siemens' market success in China," said Klaus Kleinfeld, chief executive of Siemens, in Shanghai.