China to London freight train kicked off as Xi boosts trade
text size

China to London freight train kicked off as Xi boosts trade

China started a freight train to London as part of President Xi Jinping’s efforts to strengthen trade ties with Europe, according to state-owned China Railway Corp.

The train departed Yiwu in eastern Zhejiang province on Sunday and will cover more than 12,000 kilometres in about 18 days before reaching the British city, China Railway Corp said in a statement on its website on Monday.

The freighter, carrying garments, bags and suitcases among other items, will pass through Kazakhstan, Russia, Belarus, Poland, Germany, Belgium and France, the Xinhua news agency reported the service earlier.

London is the 15th city in Europe to be added to China’s freight train services to the continent as Xi seeks to reinforce commercial links with markets across Asia, Africa, the Middle East and Europe.

In 2013, Xi unveiled his so-called Belt-and-Road initiative, making transport lines the centerpiece of his efforts to create a modern Silk Road.

China has initially set aside about $40 billion in a fund to finance roads and railways abroad under the plan, while the nation’s trade with countries along the routes could reach US$2.5 trillion in about a decade, Yao Gang, the then vice chairman of China Securities Regulatory Commission, said in 2015.

Railways is one of the top priorities of President Xi and only last month, the country announced that it plans to spend 3.5 trillion yuan ($503 billion) to expand the national railway system by 2020.

The high-speed rail network will span more than 30,000 kilometres under the proposal, according to details released at a State Council Information Office briefing in Beijing Thursday. The distance, about 6.5 times the length of a road trip between New York and Los Angeles, will cover 80% of major cities in China.

China has also used railways as a diplomatic tool overseas. Chinese domestic train manufacturers have targeted emerging markets in Africa, Latin America and Southeast Asia for rail-related orders while also bidding for high-profile contracts in the developed world.

Rail trade between Asia and Europe is rather unique when bulk of the goods between the two continents travel by ships. Goods sail about 10 days to reach Los Angeles from Asia, and could take as many as 30 days to Rotterdam.

China’s economy is on pace to meet the official growth target, posting 6.7% expansions in the first three quarters of 2016.


Do you like the content of this article?
COMMENT (2)