China is strategically developing new trade routes to Europe that bypass the South China Sea, aiming to reduce its reliance on maritime paths vulnerable to geopolitical tensions with the United States and its allies. These alternative corridors include overland rail links through central Asia and even Arctic shipping lanes, allowing China to sidestep traditional chokepoints like the Strait of Malacca and the Suez Canal.
Over the last few years, the city of Chongqing in China has become a popular spot for an overland trade route that some say could become the new land version of the Suez Canal. The rail-served route is rapidly emerging as a key player in Asia’s logistics network, with expectations that it will become the region’s most vital hub for trade and transport.
Its strategic location and efficient infrastructure make it ideal for moving goods swiftly across borders, offering a reliable alternative to traditional maritime paths.
The city has quickly emerged as a strategic fulcrum in China’s trade network, and its model—if it continues to succeed—could inspire the government to go for similar investments in the west of the country, reports The South China Morning Post.
The ambitious rail project is a key component of Xi Jinping’s controversial Belt and Road Initiative (BRI), which seeks to transform global trade – and gain economic influence around the world – by creating faster, more efficient connections between Asia and Europe. By linking approximately 60 cities across China to 50 destinations throughout Europe, the initiative uses high-speed freight rail to move goods swiftly across vast distances.
The land-based trade route through Chongqing offers a significant advantage over traditional sea transport, cutting delivery times by 10 to 20 days and streamlining customs procedures.
The launch of the ASEAN bullet train in 2023 further boosted efficiency, reducing shipping time between Hanoi and Chongqing to just five days. From there, goods can reach Europe in under two weeks, making it a highly competitive option for international trade.
Beyond its logistical benefits, Chongqing plays a vital role in global manufacturing.
It produces around one-third of the world’s laptops, serves as a key hub for electric vehicle production, and exports roughly a quarter of China’s cars, reinforcing its status as both a strategic transit point and an industrial powerhouse.