Inner Mongolia key hub to Sino-EU trade

China's ongoing industrial upgrading and the launch of the China (Inner Mongolia) Pilot Free Trade Zone in April will create fresh momentum for China-Europe freight train services and provide stronger support for the country's foreign trade growth, said supply chain experts and customs officials.

The new pilot FTZ, within North China's Inner Mongolia autonomous region, covers 119.74 square kilometers and comprises three sub-zones in Hohhot, capital of the region; Manzhouli, a northern border city; and Ereenhot, a land port on the China-Mongolia border, each featuring differentiated functions and the development of industries tailored to local conditions.

The growing role of Inner Mongolia as a key gateway for China-Europe trade highlights the significance of the new FTZ.

On Friday, a China-Europe freight train loaded with small household appliances departed from Ereenhot, pushing the cumulative number of freight train trips passing through the network's central corridor beyond 25,000, said China State Railway Group Co Ltd (China Railway).

Lin Meng, director of the modern supply chain research institute at the Beijing-based Chinese Academy of International Trade and Economic Cooperation, said the steady rise in shipments of machinery, vehicles and other industrial products reflects the growing competitiveness of China's manufacturing sector.

Continued growth in trade with European and Central Asian markets is expected to provide sustained support for freight demand, said Lin.

Chen Jianwei, a researcher specializing in foreign trade at the University of International Business and Economics in Beijing, said the development of the China (Inner Mongolia) Pilot FTZ is likely to draw greater investment in logistics, warehousing, processing and cross-border commerce.

"Together with ongoing infrastructure upgrades, the initiative is expected to enhance the efficiency and capacity of China-Europe freight train services," said Chen.

Ereenhot's railway port currently handles about 13 China-Europe freight trains daily. It is linked to 75 China-Europe freight train routes connecting more than 70 logistics hubs in over 10 countries, including Germany and Poland, said China Railway.

Freight throughput at Ereenhot railway port has maintained steady growth this year. As of June 11, the port had handled 2,137 China-Europe freight train trips, transporting 205,100 twenty-foot equivalent units and 1.97 million metric tons of cargo, up 15.1 percent, 9.7 percent and 28.6 percent year-on-year, respectively.

Mi Junming, deputy director of Manzhouli Railway Station Customs, said the rapid growth in freight volume has been accompanied by a notable upgrade in the cargo mix handled by Inner Mongolia's border ports.

Cargo once dominated by metals, chemicals, garments and footwear has increasingly given way to higher-value products such as electric vehicles, consumer electronics and household appliances, reflecting the upgrading of China's manufacturing sector and export structure, said Mi.

Statistics from Manzhouli Customs show that China's EV exports through Manzhouli railway port totaled 320 million yuan ($47.33 million) in the first five months, up 950 percent year-on-year.

Chinese EVs have gained increasing traction in overseas markets in recent years, supported by advances in battery technology, intelligent features and competitive pricing, emerging as an important contributor to China's export growth, said Chen Bin, deputy director of the expert committee of the Beijing-based China Machinery Industry Federation.

Contact the writers at zhongnan@chinadaily.com.cn