From the viewpoint of the characteristics of passenger flow in China and that increasing the speed of transportation is essential to the social development, this article described that China needs high speed railway. The construction of Beijing—Shanghai high speed railway is a correct strategy choice in several aspects, such as the demand of socio-economic development of the related regions zones of optimal alternative of capacity enhancement of railways, and so on. The paper has also made a brief of the technical reservation and technical line of the construction of Beijing—Shanghai high speed railway, and given an account of forecasted demand, possible main technical alternatives and socio-economic benefits. Specific proposals have been raised for the construction of Beijing—Shanghai high speed railway, as well.