official investigation's conclusions at a cabinet meeting on Wednesday.

The accident occurred after one train stalled following a lightning strike, and then a second high-speed train ran into it. Four carriages were thrown off a viaduct.

The report found that serious design flaws in control equipment and improper handling of the lightning strike led to the crash.

More serious penalties could follow for some of the 54 officials criticised in the report.

Among the officials singled out was the former railways minister, Liu Zhijun, who was sacked before the crash, accused of corruption.

Liu "has the main leadership responsibility for the accident," the report says.

Following the accident, the authorities called a temporary halt to new high-speed rail projects and placed speed restrictions on trains.

High-speed ambitions

China had planned to lay 16,000km (10,000 miles) ofhigh-speed track by 2015, which would make it the biggest high-speed rail network in the world.

It had hoped to make its rapidly developing railway technology an export success: Chinese train companies were aspiring to compete with Germany's Siemens and Canada's Bombardier by selling their technologies to foreign companies.

Image caption China aspires to export its high-speed rail technology

But after July's crash that looks less likely.

The railways ministry said on Friday that it planned to invest 400 billion yuan ($63bn; £40bn) in infrastructure construction in 2012, which is lower than the figure for this year.

The current minister, Sheng Guangzu, said that rapid railway development should be maintained, as it "plays an important role in the country's social and economic development, especially in boosting domestic demand," according to the Chinese government's