Chongqing - Chongqing reported a 19% increase in transport activity via the New International Land-sea Trade Corridor (ILSTC) from January to September 2023. This growth equates to 126,000 TEUs, bringing the cargo value to 19.33 billion yuan (about 2.65 billion U.S. dollars) for the year so far, data shows in a press conference on October 10.

Additionally, the ILSTC has successfully coordinated the movement of 18,000 TEUs with the China Railway Express and 140,000 TEUs with the Yangtze River Golden Waterway. “Chongqing has firmly established itself at the crossroads of the Belt and Road Initiative and the Yangtze River Economic Belt,” said Yang Lin, director of the Chongqing Port and Logistics Office.

Yang highlighted Chongqing’s five-type national logistics hub, the first in China that includes a maritime port, a land port, an airport, production services, and trade services.

The ILSTC now spans 69 cities and connects to 138 railway stations across 18 provinces and regions within China. This year saw the inclusion of 9 new cities and 22 additional stations. 

On the international front, the corridor’s reach has expanded from 393 ports in 119 countries last year to 473 ports in 120 countries currently.

ILSTC helps with local firms’ cross-border industry layout

ILSTC is put into consideration when the Chongqing Municipal Commission of Economy and Information Technology sets sights on developing a modern manufacturing cluster system. This aims to foster a cross-border industry and supply chain grounded in international firms.

The ILSTC has paved the way for companies such as Changan and Quanta to establish factories in ASEAN countries like Thailand and Vietnam. An example is the Chongqing Sokon Industrial Group Co., Ltd, which invested in Indonesia to construct factories. Their production efforts resulted in shipping over 10,000 TEUs of vehicles and parts through the ILSTC, valued at two billion yuan.

Thanks to the ILSTC, the Chengdu-Chongqing region is seeing an influx of high-quality resources, greatly enhancing its industrial profile. Coal from Inner Mongolia and Shaanxi is being brought in to combat local coal deficits. Additionally, with an eye on supporting the growing automobile sector in the area, glass imports from Guangxi are on the rise through the corridor.

Furthermore, the Chongqing Customs District has been backing the ILSTC through enhancements in customs clearance, radiation scope, and cargo volume handling.

It’s worth noting that the customs clearance times for imported and exported goods in Chongqing currently stand at 25.39 and 0.66 hours, respectively, both figures above the national average.

Key industries and projects to further boost foreign trade

Chongqing has prioritized attracting critical sectors and businesses to bolster foreign exchange. This strategy has resulted in over 20 institutions and projects, including the China-Laos Economic and Trade Promotion Association, establishing a presence in Chongqing.

Data shows the import and export value of regions along the ILSTC with ten ASEAN countries has surged from 691.6 billion yuan in 2019 to 881.7 billion yuan in 2022. This marks an average annual growth rate of 8.91%.

To tap into international markets via the ILSTC, the Chongqing Municipal Commission of Commerce has promoted Chongqing-produced electric terminals, automobiles, motorcycles, and general machinery to ASEAN countries.

Forecasts indicate that by 2027, trade between Chongqing and ASEAN countries will exceed 170 billion yuan, maintaining an average annual growth rate of over 5%.