China’s Service Outsourcing market Grows

China’s service Outsourcing Industry reported stable growth in the first nine months of 2019, the latest data from the Ministry of Commerce (MOC) showed.

Chinese businesses inked service outsourcing contracts worth 886.4 billion yuan (about 125.29 billion U.S. dollars) during the January-September period, up 4.4 percent year on year.

Of the total, offshore service outsourcing contracts reached 538.04 billion yuan in value, rising 11 percent from a year earlier.

The industry’s structure improvement picked up with rapid growth of emerging productive service outsourcing business, including consulting, testing, e-commerce platforms and other fields, the ministry said.

Service outsourcing with countries along the Belt & Road totalled 65.28 billion yuan during this period in terms of the fulfilled contract value, MOC data showed.

Source: Belt and Road News Network 

Dated on: 28/10/2019


China’s Free Trade agreements along the Belt & Road Initiative

Rerouting Supply Chains to Reflect Growing Chinese Influence

The elimination of tariffs and taxes is always a boom for exporters, and is something that China has taken advantage of very effectively over the past two decades.

When China first began its journey towards becoming the massive manufacturing giant it is today, it attracted foreign manufacturers, from which the Chinese could learn, by eliminating or cutting profits tax rates for up to five years worth of profitable operations. This represented something of a boom time for foreign businesses in China, and arguably kick-started the entire Chinese economic growth.

China has also been very busy in agreeing Double Tax Treaties, which often contain clauses and reductions in taxes beneficial to the respective parties trade. China has also been active when it comes to participating in Free Trade Agreements; it has significant and wide ranging deals with the likes of ASEAN, Australia, Singapore, South Korea, and New Zealand among others and is actively engaged in negotiating several more.

These are important because they can and do direct and massively influence bilateral, and in some cases multilateral trade patterns. Taken overall, FTA impact upon and are the structural support for all global trade.

The current trade and tariff tensions between China and the United States has seen a resurgence of Chinese interest in developing free trade routes, and especially along the Belt & Road Initiative.

While not all products, and especially IT and hi-tech related components currently obtained from the US will be available from new suppliers, China will be investing in developing these, most notably with Russia. Meanwhile, staple items including energy resources, food and other consumables will increasingly be sourced from markets closer to home.

Consequently, the issue of Free Trade along the Belt & Road Initiative is a matter of keen interest. In fact, some agreements that impact this are already in position. Others are pending. This is an overview of how things stand at this moment in time.

The China-ASEAN Free Trade Agreement

This agreement has been in force since 2010 and was expanded in 2015 to incorporate an extension into the economies of Cambodia, Laos, Myanmar and Vietnam, who had asked for more time to adjust.

This agreement covers both goods and services provided by the above nations as well as China, Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand and essentially eliminates tariffs on some 95% of all traded goods and services. This covers much of the Belt & Road Maritime Routes.

China, Hong Kong Macau Closer Economic Partnership Agreements

Although Hong Kong and Macau are part of China, they have different customs and tax regimes. To cater for this, and also recognise the status of Hong Kong and Macau, these CEPA agreements have been entered into between them and China, which in certain cases provides investment incentives, especially in service areas, that only companies registered in Hong Kong and Macau can benefit from.

These include tax reductions as well as preferential market access to otherwise restricted investment areas in mainland China.

The China-Pakistan Free Trade Agreement

This came into effect in 2009, and has formed the backbone of Chinese investment into Pakistan. A direct result of this has been the Chinese development of Pakistan’s Gwadar Port, as well as the “China-Pakistan Economic Corridor” which ultimately aims to link China rail from Kashgar in its south western Xinjiang Province through to Pakistan’s rail networks at Islamabad. This route will allow Chinese goods to exit via the Arabian sea. To date much of the investment has been from the Chinese side.

The China-Gulf Co-Operation Council Free Trade Agreement

This deal, between China, and the GCC member states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, is still under negotiation. It includes details of goods and services, however given the nature of the GCC economies is largely focused on energy.

However, tourism and services are expected to be a large part of this, especially as the United Arab Emirates includes Dubai, a popular destination for Chinese tourists and businesses wishing to reach out into Arabia. The ninth round of discussions were concluded recently in Riyadh, and it is understood that most major points have been agreed.

The China-Sri Lanka Free Trade Agreement

This agreement is still under negotiation, although China has been investing in Sri Lankan Ports and road infrastructure for some time now. The country is also a preferred destination for increasing numbers of Chinese tourists.

There has been some resistance to this proposed FTA in Sri Lanka, notwithstanding recent scandals involving Chinese investment in the main Colombo Port. Sri Lanka is coveted by both China and India as a base for transshipment, as well as potential for Naval operations. In truth the Sri Lankans are probably content to play one off against the other. The fifth round of talks was held in Colombo in January 2017.

The China-Georgia Free Trade Agreement

This agreement, which gives China access to the Caucasus markets and through to the Black Sea, was “substantially concluded” as at the end of 2016. The agreement will mean that “Chinese enterprises and consumers will have greater access to high quality products like wine and fruits from Georgia, while Georgians will benefit from cheaper China-made industrial products” according to Chinese Commerce Minster Gao Hucheng.

Chinese buyers have already been to Tbilisi looking at purchasing products. However, a word of warning – the prices offered have been relayed to me as being so low that there is very little profitability in China trade for Georgian farmers and producers. It remains to be seen what impact this has on the Georgian economy, other countries such as Armenia, Azerbaijan and Turkey will be studying this closely.

The China-Eurasian Economic Union Free Trade Agreement

This agreement was signed off last year, although the real meat of the deal – which product categories will be included, is still under negotiation. When agreed, it will effectively bring the Free Trade of Chinese goods right up to the borders of the European Union.

The EAEU is a trade bloc, rather like ASEAN, but comprising of Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. If the EAEU were a country, it would be the fourth largest global economy, with a GDP in excess of USD4 Trillion. China is keen to get a deal done as these countries, and especially Kazakhstan, Russia and Belarus, offer China uninterrupted transportation of goods from China right up to the borders of the European Union at Brest, in Belarus, where Poland, and rail and road infrastructure leads directly to Germany.

This would be a significant trade development and would change the course of EU supply chains. This article The Eurasian Economic Union. About To Bring China To The EU’s Borders explains this scenario in greater detail. In the meantime, Singapore is also about to sign up an FTA with the EAEU while Vietnam and Serbia have already done so. The momentum for trade development with this particular bloc is highly significant.

The China-Regional Comprehensive Economic Partnership Agreement

This agreement has been touted by some as China’s answer to the TPP. It is between the ten member states of ASEAN (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam) and the six countries with which ASEAN has existing free trade agreements (Australia, China, India, Japan, New Zealand, and South Korea).

As such, it is a purely Asian deal. The main prize here for China would be to draw India and Japan into an FTA through the RCEP, which would give Chinese manufacturers access to two huge, dynamic, and powerful markets. China does not have full-blown free trade status with either, though it does with all other RCEP states via other multilateral agreements.

But getting Japan and India on board will not be easy. Japan has ongoing political tensions with China, particularly related to territorial disputes. Many Japanese businesses are wary of China, and keen to keep innovative manufacturing technologies such as advanced robotics out of China’s reach.

India, meanwhile, may slowly be beginning the process of taking over China’s mantle as workshop of the world. India will be wary of large quantities of cheap Chinese products entering their huge domestic market while Indian manufacturers are still in the process of upgrading and improving their own capabilities (the iPhone has begun production in India). Cheap Chinese imports flooding the market would be politically disastrous and interfere with India’s transition to a global manufacturing hub.

China, to be fair, probably agrees. A short-term gain in India is not want the Chinese want. Indeed, China will need Indian manufacturing capacity just to keep its own domestic consumers supplied with inexpensive consumer goods.

The RCEP has also not been without its critics. It has gained some notoriety over what have been called “the worst provisions ever drafted on copyright protection”.

While the negotiations continue – the 15th round was recently held in Tianjin the RCEP and China will need to provide major concessions to India and Japan to get anywhere fast. At present, these discussions look like they will be an ongoing saga for some time to come.

In addition to actual Free Trade Agreements, China is also busy developing specific zones, which are duty exempt and used to encourage the joint development of Chinese and other foreign companies in making end products using expertise from both.

Examples are the newly announced Heilongjiang Free Trade Zone on the border with Russia, & the Khorgos Gate FTZ in Kazakhstan. n overview of Free Trade Zones along the Belt & Road leading all the way to Europe can be found here

Source: Belt and Road News Network



Gwadar Port to become fully functional by next month

The government would make the Gwadar Port fully functional by next month (November) as necessary transhipment rules for bulk cargo are ready for final approval, sources revealed on Wednesday.

Officials of the Ministry of Maritime Affairs, on the condition of anonymity, disclosed that the Gwadar Port will be made fully functional as soon as transhipment rules for bulk cargo from the port to foreign destinations are approved by the Federal Board of Revenue (FBR) as well as the Law Division.

“The government is leaving no stone unturned to make the port fully functional by November 2019,” the officials maintained.

They informed that a committee, comprising Balochistan chief customs collector, Quetta collector, officials of the Model Customs Collectorate (MCC) Gwadar and MCC Appraisement-West (Karachi), was constituted recently to prepare the draft of transhipment rules.

Source: Pakistan Today

Dated on: 3/10/2019

Ahmad Ahamdani

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China is creating a New Global Data Highway

China has a massive blueprint for boosting its economic growth, and part of the project is called the “Digital Silk Road.”

Not to be confused with the online darknet marketplace, China’s “Digital Silk Road” refers to a route that lies alongside the country’s big infrastructure push across continents termed the Belt & Road Initiative (BRI) or the New Silk Road deeply integrating it with the rest of the world.

Over the past few years, China has poured billions of dollars into developing its digital capabilities in various ways from fostering homegrown talents like Alibaba and Tencent, to deepening its digital reach with other continents like Europe, ultimately hoping to “generate fresh economic growth, foster effective governance and control, and project global power,” according to a report by Berlin based Mercator Institute for China Studies (MERICS).

To be clear, “Digital Silk Road” is only one part of China’s grand plan to achieve those three objectives. And it’s a crucial story of the modern wold that involves players like the Chinese Communist Party, Huawei, and the U.S. government.

Digitisation Helps the CCP Reestablish Legitimacy

With the original BRI, a colossal project in its own right  China has pushed billions of dollars into various economies in Asia and Europe through opaque loans to expand influence around the world.

The BRI is envisioned as a revival of an ancient trade route between China and Europe, as well as a vehicle to boost economic growth and re-establish legitimacy among its people.

“The CCP’s legitimacy rests heavily on economic performance; stagnating or even declining growth poses a serious risk to its grip on power,” the MERICS researchers wrote.

As a result, digitisation was considered one of the best ways forward to “upgrading China from the ‘workshop of the world’ into a high-tech leader with globally attractive innovative products and services, and modernised manufacturing processes,” they added.

Digital Silk Road as a National Security Threat

But China’s goals aren’t singularly focused and that economic growth isn’t the only objective, argue experts.

The MERICS researchers say that China’s digital ambitions “combine economic goals with broader normative and security aims.”

The U.S. Government also sees Digital Silk Road projects like the Chinese and Russian tag team that’s building up cable networks connecting Asia and Europe overland to bypass “U.S. controlled data routes,” according to MERICS, or undersea cables laid out or upgraded by Chinese company Huawei as a national security threat.

Source: Belt and Road News Network


Chinese & Greek Diplomats pledge to strengthen mutual Cooperation

Chinese State Councillor & Foreign Minister Wang Yi and Greek Foreign Minister Nikos Dendias agreed on Wednesday here to strengthen all-round cooperation between the two Countries.

China and Greece enjoy a friendship that goes back a long way, Wang said during their talks on the sidelines of the 74th session of the United Nations General Assembly.

Noting that Greece has been actively developing relations with China since the establishment of its new government, he expressed the hope that the two sides could give full play to the leading role of head-of-state diplomacy in bilateral ties, consolidate their long friendship, build political mutual trust and strengthen mutually beneficial cooperation.

This would further promote all-round cooperation between the two ancient civilisations and make new contributions to regional and world peace and development, he said.

It’s hoped that both countries would achieve common development and prosperity through the joint building of the Belt & Road, and cooperation between China and Central and Eastern European Countries, said Wang.

China welcomes Greece to attend the second China International Import Expo (CIIE) as one of the “countries of honour” this year, he said.

Emphasising the significance of advancing China-Europe relations in safeguarding multilateralism and the international system with the United Nations at its core, Wang also voiced the hope that Greece would continue to play an active role in the healthy development of China-Europe ties.

Dendias, for his part, said that Greece is committed to further strengthening its comprehensive strategic partnership with China.

Praising the role of Belt & Road Initiative (BRI) in promoting economic development for countries involved as well as Europe-China cooperation, he said Greece will continue to actively participate in the BRI and promote pragmatic cooperation within the framework of “17+1” cooperation.

Greece will be delighted to participate in the second CIIE and would like to play a constructive role in the development of Europe-China relations, he said.

Valuing China’s help to Greece during the financial crisis, the foreign minister said his country will continue to offer understanding and support on issues of major concern to China.

Greece expects more Chinese enterprises to invest there, he added.

Source: Belt and Road News 

Dated on: 27/9/2019


AIIB to Invest 1.09 Billion USD in ASEAN Countries to Boost Inter-connectivity

The Asian Infrastructure Investment Bank (AIIB) will invest in six projects with 1.09 billion U.S. dollars in countries of the Association of Southeast Asian Nations (ASEAN), AIIB President Jin Liqun has said.

The bank will play a bigger role in promoting interconnectivity between China, ASEAN and other Asian countries, Jin said at the 16th China-ASEAN Expo in Nanning, the capital city of south China’s Guangxi Zhuang Autonomous Region.

In the past four years, AIIB has invested a total of 1 billion dollars in 10 projects in six ASEAN countries, according to Jin.

“I am confident that members of ASEAN will gain greater benefits and dividends from our cooperation,” Jin said, highlighting the role of the Belt & Road Initiative in boosting interconnectivity in the ASEAN region.

Headquartered in Beijing, AIIB is a China-initiated multilateral development bank which focuses on infrastructure investment.

Beginning operations in 2016, the bank has expanded its membership to 100 and approved 46 loan projects with a total amount of 8.5 billion dollars for its 18 members.

Source: Belt and Road News 

Dated on: 23/9/2019

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UAE seeking investment avenues in multibillion China-Pakistan Economic Corridor

ISLAMABAD: The United Arab Emirates has expressed its interest in exploring investment opportunities in the second and third phase projects of the China-Pakistan Economic Corridor (CPEC), Emirati officials announced on Tuesday, following talks with Chinese officials in Islamabad.
CPEC, which is valued at well over $60 billion is a part of China’s ambitious Belt and Road Initiative (BRI), with the two phases under discussion related to key infrastructure and development plans.
The UAE Embassy in Islamabad posted on its official Twitter account that its Deputy Head of Mission, Abdul Aziz Al Neyadi, had met the General Manager of China Road and Bridge Corporation (CRBC), Li Zhihuai, to discuss the ways of joint cooperation in the China-Pakistan Economic Corridor.
The CRBC and Chinese embassy officials did not respond to Arab News’ requests for comment.
Al Neyadi told Arab News that the meeting agenda with the representatives of China’s state-owned CRBC was held to explore “how UAE could participate and invest in the second and third phases of the China Pakistan Economic Corridor especially in the (projects associated with the) port, railways, and free zones.”
The UAE, he said, wanted to “encourage small and medium Emirati businesses to participate in these free zones,” to open new vistas for UAE enterprises which would bring foreign investment into CPEC, the linchpin of China’s BRI.
“UAE and China have common interests,” Al Neyadi said. Both are “ready to jointly work in a third country, as UAE and Chinese governments enjoy strong relations with Pakistan.”
In May this year, UAE Ambassador to Pakistan, Hamad Obaid Ibrahim Salem Al-Zaabi, said many companies in his country were keen to invest in the deep-sea port city of Gwadar, which is widely considered the crown jewel of the project.
An official statement quoting Al-Zaabi said, “Pakistan and UAE need to work together to further upgrade their ties aiming at developing a strategic partnership.”
Pakistan had last year emphasized the improvement of its railways, special economic zones and third-country participation during the eighth Joint Cooperation Committee meeting held in Beijing following the completion of the first phase.
The UAE is not the only Gulf state to see potential in CPEC. Saudi Arabia and Pakistan signed three major investment deals for China-Pakistan Economic Corridor (CPEC) projects in September 2018. Riyadh will also be investing in an Aramco oil refinery project that will be constructed in the southwestern province of Balochistan and house a petrochemical complex project at Gwadar’s deep-sea port.
Speaking with Yao Jing, Chinese Ambassador to Pakistan at the PM office on Tuesday, Prime Minister Imran Khan reiterated his resolve to complete ongoing projects under the CPEC which had contributed substantially to Pakistan’s development and prosperity, reported state-owned news agency, APP.

Source: Arab News 

Dated on: 22/9/2019

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‘China, Pakistan working on multiple cultural exchange programmes’

ISLAMABAD: Chinese and Pakistani authorities are working on multiple cultural and educational exchange programmes to strengthen ties between the two countries, Zhang Heqing, cultural counsellor at the Chinese embassy, said on Saturday.

Mr Zhang, the director of the China Cultural Centre, was speaking after the opening of the Wuhan Photography and Intangible Cultural Heritage Exhibition and Art Workshop at the Pakistan National Council of Arts.

Speaking to Dawn, he said the event is part of various programmes and cultural exchanges celebrating the 70th anniversary of the foundation of the People’s Republic of China (PRC).

“The aim of organising such cultural events is to make Pakistani students and people understand the rich cultural heritage of China and promote people-to-people contact, which is one of the core objectives of CPEC’s second phase, and to celebrate the mid-autumn festival,” he said.

He added that both countries have a rich cultural heritage and tourist attractions that need to be explored and promoted.

Under the 2019-2022 Cultural Exchange Programme, China and Pakistan are working on six agreements to strengthen ties in the field of culture, education and tourism.

A Pakistan cultural week will be held in Beijing mid-October to showcase cultural heritage and a large exhibition of Gandhara art will be displayed at the National Museum of China in May 2021, Mr Zhang said.

The other agreements to be signed in the near future include the promotion of tourism, recognition of diploma and certificates in higher education, youth exchanges, promotion of co-production and exchange of films and television shows and the protection of cultural products and artefacts from trafficking.

Currently, 7,000 Pakistani students are studying at Chinese universities, he said, adding that a youth delegation of 100 people from Pakistan will visit China in the second week of November.

Speaking about progress on projects under the China-Pakistan Economic Corridor (CPEC), Mr Zhang said major projects in energy and infrastructure have been completed and are near completion.

CPEC is a unique model of connectivity, trade and development which is an important part of the Belt and Road initiative,” he said.

Meanwhile, more than a hundred students and 15 teachers from public and private schools and colleges in the twin cities participated in an art workshop that included workshops on sculpture, embroidery, calligraphy and more.

The sculpture workshop was conducted by Hu Zuolin, a famous clay sculptor from Hubei province. He had made sculptures of Jack Ma, the cofounder of the Alibaba Group, as well as others.

Ali, a Chinese student from Hunan province studying at the Islamic International University Islamabad, was all praise for Mr Hu and his art, and was also impressed by the talent shown by the Pakistani students.

Mr Hu has had a considerable influence on folk art in China and enjoys a reputation as a ‘clay sculpture camera’.

The art of oil-paper umbrellas was demonstrated by artist Su Feng, who has inherited the art form that has a more than 150-year history integrating the refined umbrella making techniques from the Hunan, Hubei and Zhenjiang provinces.

In Chinese the ‘oil-paper umbrella’ is homophonic with ‘having children’, and symbolises the eastern ancient thought of integration of ‘man and nature’.

A Han embroidery technique workshop was conducted by Ren Wei, a famous embroidery artist and craftswoman from Hubei province.

Ms Ren is vice president of the Wuhan Han Embroidery Art Research Institute. The art, based on Chu and Han embroidery techniques, is mainly popular in Wuhan, Jingzhou, Honghu, Xiantao and other parts of Hubei.

In 2018, Han embroidery was included in China’s National Intangible Cultural Heritage List.

Fang Qixiong conducted a workshop on Hongmen Fist, demonstrating various techniques of the traditional Chinese boxing martial art.

Mr Fang is the president of the Wuhan Caidian Martial Arts Association.

Mr Yang Xianvi conducted a workshop on Shuanggou calligraphy, an ancient Chinese art. He is a master of the technique of making hollow looking characters featuring fine brushwork and continuous strokes.

His work has been used in stamps released on the 70th anniversary of the foundation of the PRC.

Published in Dawn, September 15th, 2019

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Iran’s interest in CPEC strengthens regional integration

Iranian Ambassador to India, Ali Chegeni, was reported by India’s The Hindu newspaper on September 10 as telling members of the Indian Association of Foreign Affairs Correspondents that “Iran is now discussing an Liquefied Natural Gas (LNG) pipeline to China along the China-Pakistan Economic Corridor (CPEC), as India is not expected to retain its prior interest in LNG imports from Iran.” This remark hasn’t received the attention that it deserves, however, despite it being a visionary proposal for strengthening regional integration.

First things first, it’s important to explain the context in which it was made. Ambassador Chegeni was talking about the consequences of India’s decision to comply with the U.S. unilateral sanctions against his country’s energy industry, which he was understandably displeased with. Still, he remained very professional when addressing this issue, even saying that “We love the Indian people. But we cannot force somebody to love us. The government of India has to decide according to its national interest. Just as the Chinese have.”

It’s here where one can better understand why the diplomat decided to reveal the existence of hitherto unreported discussions between his country and China over the proposal to build an LNG pipeline to the latter via CPEC. China, unlike India, only complies with international law and not the dictates of any individual country like the U.S. whose demands run contrary to the aforesaid, which is rightly respected by Iran. Furthermore, there has previously been news about connecting the Iranian port of Chabahar with CPEC’s terminal one of Gwadar.

It therefore makes sense for Iran to consider how it could take ties with China to the next level by including an energy dimension into its plans to integrate with CPEC, which is the flagship project of the Belt and Road Initiative (BRI), after India is no longer regarded as a reliable customer of its resources. A CPEC-parallel pipeline (E-CPEC+, with the “E” referring to “energy”) would be the natural outcome of the unfortunate situation that Iran has found itself forced into and thus help turn a regrettable situation into a positive one for all.

The South Pars gas field in the southern port of Assaluyeh, Iran, July 19, 2010. /VCG Photo

Strengthening regional integration is the embodiment of the win-win outlook on international relations, yet doing so in the manner proposed by the Iranian Ambassador to India might cause some concern among his hosts who remain opposed to CPEC because of their claims to the Kashmir conflict that have resulted in them holding the official position that the project transits through disputed territory that they consider to be their own.

Being aware of this backdrop, it’s more newsworthy that it was Ambassador Chegeni who revealed the existence these pipeline discussions and not any other Iranian official because it shows how seriously the country is considering this, but also that it cares about not offending India’s sensitivities too. That’s why it was Iran’s top representative to India who broke the news and explained why his country was pursuing that possible course of action, chiefly in response to India’s voluntary compliance with the U.S. sanctions regime.

In the event that the negotiations are a success and eventually lead to E-CPEC+ entering into activity sometime in the future, then it would represent a pragmatically reliable form of indefinite sanctions relief for Iran, the strengthening of regional integration processes, and ultimately an exemplary form of South-South cooperation between the three countries involved. In addition, these positive outcomes might convince India to moderate its uncompromising position against both CPEC and BRI and therefore accept that both of them are here to stay.

Even if it remains opposed to them, Iran nevertheless has the sovereign right to participate in any regional integration projects that it wants to, especially those such as E-CPEC+ which could ensure its long-term economic security amidst the U.S. ever-tightening sanctions pressure that already compelled India into discontinuing its import of its historic partner’s resources. It would be best for everyone if India supported Iran’s pipeline plans, but its lack of support wouldn’t have any influence on stopping this proposal in that case.

Editor’s note: Andrew Korybko is a Moscow-based American political analyst. The article reflects the author’s opinions, and not necessarily the views of CGTN.

Source: CGTN 

Dated on: 17/9/2019

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Belt & Road Trains drive Chinese & European Industries Closer

In the plant of the world’s top auto glass manufacturer Fuyao Group in Changchun, capital of Northeast China’s Jilin Province, forklifts are busy transporting windshields into standard containers.

These windshields, designed for the medium and high-end models of Audi, will be transported to Heilbronn, Germany by the Changchun-Manzhouli-Europe cargo trains before arriving at Audi’s assembly plants there.

The return trip of the train will carry auto components from Germany to Volvo’s Daqing factory in Heilongjiang Province, which neighbours Jilin.

The China-Europe cargo trains have closely linked the old industrial base in northeastern China to the manufacturing bases in Europe and led to increasing industrial cooperation which is mutually beneficial and has contributed to the economy for both.

Advantaged Cooperation

A cargo train loaded with containers carrying windshields, wooden flooring, activated carbon and auto components left Changchun on Thursday night to deliver the cargo to Russia, Belarus, Poland and Germany along the Changchun-Manzhouli-Europe route.

As an important project for Jilin to join the construction of the Belt & Road, the Changchun-Manzhouli-Europe cargo train line was launched in 2015

The route starts from Changchun, exits China via Manzhouli, the largest land port on the China-Russia border, and passes through Russia, Belarus and Poland before arriving at the terminus of Nuremberg, Germany.

It measures about 9,800 km, and a single trip usually takes 14 days, saving more than 20 days compared with sea transportation, said Wang Yue, Chairman of the Changchun International Land Port Development Co., Ltd. (CCILP), which operates the cargo trains on the route.

The inbound trains carry imports of engines, gearboxes and steering shafts from Europe and outbound trains have exports of goods like windshields, brake pads and bearings made by Chinese companies.

Since the Changchun-Manzhouli-Europe cargo train service was launched in August 2015, it has transported over 43,000 standard containers with the value of over 13.8 billion yuan (1.94 billion U.S. dollars).

Demi Ben, Managing Director of the CCILP GMBH, said, Changchun and some other northeastern Chinese cities are home to a number of top auto manufacturers and auto components enterprises, while Bavaria, where Nuremberg is located, is a major German automotive manufacturing base.

The similar structure of the industrial clusters in northeastern China and the European country has paved the way for further cooperation.

The Nuremberg warehouse for the Changchun-Manzhouli-Europe railway has been very busy since it was put into use in June 2018, said Demi Ben, who is also in charge of the warehouse.

The auto components such as windshields and bearings from northeastern China are usually put into the warehouse for short-term storage and then sent to the appointed places required by the local business customers via the “door-to-door” service.

Source: Belt and Road News 

Dated on: 9/9/2019