Local officials say a signalling failure caused the crash Chinese state-owned train manufacturer, China CNR, will recall 54 bullet trains, as problems continue to plague the industry.
The particular models were used on the Beijing-Shanghai high-speed rail line, the firm said in a statement.The announcement comes a day after officials placed a temporary halt on all new high-speed rail projects.
The government continues to face public fury over a crash that killed 40 people last month.
The incident, which took place on a separate high-speed rail line near Wenzhou, lead to allegation of mishandling on the part of authorities and has called the country's flagship project into question.
This after the rail link between Shanghai and Beijing had already run into delays because of power cuts and technical reasons after it was launched in June.
The State Council said on Thursday that safety checks would be carried out on existing lines, speed limits would be enforced and the safety of all new projects would be re-evaluated before being approved.
"We will suspend for the time being the examination and approval of new railway construction projects," the council said in a statement.
However, the council also said: "China will unswervingly continue its development of high-speed railways."
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