Japanese companies are not expected to win the contract for construction of a $16 billion high-speed rail line between Beijing and Shanghai, a state-run newspaper reported Tuesday.

China will "most likely" build the 1,300-km railway with domestic technology and equipment, China Business Weekly quoted an expert as saying.

Still, imported equipment will be used to supplement the construction, the paper said.

"When making a decision on such a pivotal project, development of domestic technology is a very important consideration," said Sa Shuli, one of the experts working with the Railways Ministry on the initial stages of the planned rail link.

Sa, a professor of railway technology with Northern Jiaotong University, reportedly said Japan's bullet-train system is not the best system technically but is economical and efficient. "Even if the highest decision-makers decide not to use Japan's shinkansen to build the high-speed railway, technical and operational cooperation with Japanese firms will be beneficial," Sa was quoted as saying.

The final decision on the technology and equipment to be adopted could be delayed due to various complex issues, Sa reportedly said.