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ILSTC Accelerates the Influx of ASEAN Products into Chongqing

By CHANG CHEN|Aug 23,2024

Chongqing - The New International Land-Sea Trade Corridor (ILSTC) is transforming trade between China, particularly its western regions, and ASEAN countries. This shift has notably enhanced the quality and speed of ASEAN products entering Chongqing.

The dry port of the New International Land-Sea Trade Corridor is operating smoothly. (Photo/Zhang Jinhui, Visual Chongqing)

Southeast Asian fruits reach Chongqing at peak freshness

In the sweltering August heat of Chongqing, fruit vendor Li Minda loads crates of delicate Lao bananas onto his tricycle, noting their improved quality since 2023. This improvement is due primarily to the China-Laos Railway and the ILSTC. The railway, operational since December 2021, enabled renowned Lao bananas to enter the Chinese market via this route, with 60% of the 60,000-ton annual production now destined for the Chengdu-Chongqing region. These bananas, known for their superior quality, now comprise nearly half of Chongqing’s banana market.

Historically, Lao bananas were imported via road, often suffering damage due to rough conditions and inadequate cold chain logistics, especially during hot weather. Multiple freezing processes and insulating materials were used during transport, but quality often deteriorated, with bananas losing peak flavor by the time they reached consumers.

The ILSTC has revolutionized this process by using a cold chain rail service, ensuring stable transportation and precise temperature control. This method preserves the fruit's quality, allowing it to arrive in China in peak condition. Beyond bananas, other Southeast Asian fruits like durians, longans, dragon fruits, and mangosteens are also reaching Chongqing faster and fresher than before. For example, Thailand’s golden pillow durians now take just seven days to travel from the orchard to Chongqing’s supermarket shelves.

Containers on the first banana train heading to China via the China-Laos Railway are seen at the Vientiane South Station in Vientiane, Laos, on Dec. 6, 2022.(Photo/Kaikeo Saiyasane, Xinhua)

Lao beer taps into Chongqing's nightlife scene

Lao beer has become a hit in Chongqing's nightlife scene. Jin Long, a Lao national living in Chongqing, enjoys hosting BBQs and sports nights with friends, now featuring Lao beer, which he describes as having a unique, rich flavor due to its use of Lao sticky rice, German hops and French malt. Previously, he had to wait a week for online orders, but now Lao beer is available locally thanks to imports through the ILSTC. 

Chongqing's weekly return train service has facilitated the influx of Lao products, with Lao beer quickly selling out since its October 2022 debut. Local distributor Zhang Jihong notes that demand continues to rise, prompting regular imports.

Rising demand for Lao cassava flour

Ding Meijun, deputy general manager of the Lao branch of New Land-sea Corridor Operation Co., Ltd., has become a part-time promoter of Lao cassava flour, which is increasingly popular in China for trendy foods like bubble tea. With domestic production limited, over 80% of cassava flour in China is imported. While other Southeast Asian countries also produce it, Lao cassava flour has surged in popularity thanks to the efficient China-Laos Railway and the ILSTC. 

Previously, importing cassava flour required lengthy and costly sea and land routes, but the new rail service reduced transit time to five days, making it both faster and cheaper. This has boosted demand, with Chongqing emerging as a key distribution hub. 

The ILSTC has improved the quality and speed of ASEAN goods entering China, fostering trade and cultural exchange. Products like Lao bananas, beer, and cassava flour have reshaped markets and strengthened economic ties.

(The Chinese version of this report was contributed by Yang Jun, Wu Gang, and Ren Meilian, reporters from Chongqing Daily.)


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