Chongqing - On February 10, Chongqing officially established the International Exchange and Cooperation Coordinating Mechanism of the New International Land-Sea Trade Corridor (ILSTC) to boost cross-border communication, streamline logistics, and foster sustainable economic ties between China and Southeast Asia.
The ILSTC cooperation mechanism, formed under Chongqing's leadership and with ASEAN diplomats' participation, underscores China’s dedication to deepening regional economic collaboration.
New mechanism providing a "problem-solving" service
The newly established mechanism seeks to create an efficient and stable communication platform, focusing on policy dialogues, practical cooperation, and the sharing of experiences between China and ASEAN countries.
The mechanism aims to address barriers in logistics and trade by providing a "problem-solving" service, where cross-border businesses can access direct consultations. This will ensure that the flow of goods, information, and investment is uninterrupted. The mechanism will also facilitate updates to key trade policies, provide new opportunities for collaboration, and enhance the operational efficiency of the ILSTC by leveraging data and technology more effectively.
One significant feature of the mechanism is the "dynamic communication list," a tool that ensures effective and ongoing communication between the parties involved. The goal is to continuously enhance cooperation between Chongqing and ASEAN countries, ensuring that trade flows smoothly and barriers are removed.
The mechanism also aims to deepen cultural exchanges, making the ILSTC a platform for trade, logistics, and greater people-to-people connections between China and ASEAN through easier travel, educational exchanges, and cultural activities.
ILSTC drives significant growth in trade and cultural exchange
During the event, ASEAN diplomats, including Manichanh Sonekhamxay, the Economic and Commercial Counsellor of the Lao Embassy in China, emphasized the growing importance of the ILSTC, with Sonekhamxay highlighting how the China-Laos Railway has enhanced logistics and trade by significantly reducing shipping times compared to traditional sea routes.
"Previously, it took about 30 days to transport goods by sea from Laos to China. With the new rail route, transportation now takes only 3 to 5 days," she said in an interview with Bridging News.
Manichanh Sonekhamxay, the Economic and Commercial Counsellor of the Lao Embassy in China. (Photo/Foreign Affairs Office of Chongqing Municipal People's Government)
This railway, which connects Kunming in China to Vientiane in Laos, has become the core of Laos' logistics network, linking the country directly to China's southwestern regions and other ASEAN countries. According to Sonekhamxay, the improved transport efficiency has led to a substantial increase in trade, particularly with Chongqing.
"The volume of goods like cassava starch and Laos beer transported through the ILSTC has increased significantly, and our exports to Chongqing have grown in scale," she added.
Notably, Laos has successfully integrated its products into the Chinese market, meeting China's standards for packaging and quality, helping to open new market channels for Lao goods. "The ILSTC is not just a logistics route; it is a comprehensive platform for product discovery, standardization, and market access," said Sonekhamxay.
In addition to logistics improvements, the Lao government has introduced policies to encourage Chinese enterprises, especially from Chongqing, to invest in industries like motorcycles, new energy vehicles, and agricultural machinery. "These policies create opportunities for Chongqing businesses to cooperate with us in agriculture and green technology," said Sonekhamxay.
Pham Trong Tho, Vietnam's Consul General in Chongqing, also emphasized the growing significance of the ILSTC for enhancing trade ties between Vietnam and Chongqing. He mentioned that the direct rail connection between Chongqing and Haiphong port in Vietnam has cut down logistics time significantly.
"The transportation between Chongqing and Haiphong port now only takes two to three days by rail, and just two hours by air. This has greatly enhanced both economic and cultural exchanges between our two regions," Pham said.
Representatives from Southeast Asia conduct a field visit at the Dry Port of the New International Land-Sea Trade Corridor. (Photo/Foreign Affairs Office of Chongqing Municipal People's Government)
Pham added that in 2025, over 350,000 Vietnamese tourists visited Chongqing, marking a 40% increase. On the trade front, Vietnam has been Chongqing's largest trade partner in ASEAN for five consecutive years, with a growth rate of about 25%. More Chongqing entrepreneurs are considering investment opportunities in Vietnam, reflecting the expanding economic ties between the two regions.
Ayesha Y. Bahjin, the Philippine Consul in Chongqing, highlighted the Philippines' strong commitment to the ILSTC, noting a 24.2% growth in trade between Chongqing and the Philippines from 6.59 billion yuan in 2023 to 8.59 billion yuan in 2025. She emphasized Chongqing's growing role as a regional gateway and expressed readiness to enhance collaboration in trade, investment, e-commerce, and green logistics.
Chongqing, which is geographically positioned as the gateway between China's interior and the ASEAN region, continues to grow in importance. According to the latest statistics, Chongqing's trade with ASEAN countries reached 132.65 billion yuan in 2025, a 12.6% increase from the previous year. This growth has been driven by the increasing efficiency and connectivity provided by the ILSTC.