CHONGQING — China is establishing a new, land-based trade corridor that is being hailed as an overland alternative to the Suez Canal. This ambitious project, centered in the mountainous city of Chongqing, aims to provide faster and more secure freight routes for Chinese exports to Europe, sidestepping maritime choke points and growing geopolitical risks.
The new rail-and-sea network significantly reduces shipping times, offering a delivery period that is 10 to 20 days shorter than traditional sea routes. The route uses a combination of high-speed rail and intermodal transport, with goods from Southeast Asia reaching Chongqing before being transported by train to European destinations like Germany and Poland. The recent launch of the ASEAN bullet train has cut the travel time from Hanoi to Chongqing to just five days, from which products can reach Europe in less than two weeks.
While the new route offers clear logistical advantages, observers note that it has significant geopolitical dimensions. The project is a key component of China’s broader “Belt and Road Initiative” (BRI), a global infrastructure development strategy. The COVID-19 pandemic and the ongoing war in Ukraine have highlighted the fragility of traditional maritime supply chains and the risks of relying on Western-influenced sea lanes such as the Suez Canal and the Straits of Hormuz and Malacca. By developing a comprehensive overland network, China is seeking to reduce its vulnerability to potential disruptions or blockades.
The route also allows China to bypass Russia, a crucial move following concerns over the seizure of Chinese shipments in 2023, despite strong bilateral trade ties between the two nations. This has prompted Beijing to push for the development of a “Middle Corridor” through Kazakhstan and the Caspian Sea, further diversifying its options and avoiding a single-point dependency.
Despite its strategic importance, the project faces several challenges. These include potential customs delays, high operational costs, and the need for continuous infrastructure improvements across multiple countries. Many of the routes, especially those under the BRI, have relied on substantial government subsidies to remain financially viable for exporters.
Nevertheless, Chongqing’s strategic location and economic power make it an ideal hub for this new trade model. The city is a major manufacturing powerhouse, responsible for producing about one-third of the world’s laptops and serving as a key base for electric vehicle and car exports. This combination of production capacity and a streamlined logistics network strengthens China’s ability to control its supply chain and enhance its position in global trade.