China is quietly building alternative routes to facilitate the export of goods to Europe without passing through the South China Sea, in order to avoid tensions with the United States and its allies in the region. The mountainous city of Chongqing in China has become a major hub for a land trade route that some say could become a new Suez Canal, according to Euronews.
The route is serviced by rail and is expected to become the most important logistics center in Asia. The South China Morning Post reports that the city has quickly grown into a strategic point in China’s trade network, and its model, if it continues to function successfully, could inspire the government to make similar investments in the western part of the country.
Every day, the city processes hundreds of shipments, connecting Southeast Asian countries like Vietnam and Singapore with Europe, including Germany and Poland, using fast freight trains. The land delivery time is shorter by 10 to 20 days compared to traditional maritime routes and significantly simplifies customs procedures. The launch of the ASEAN fast train in 2023 has reduced the delivery time between Hanoi and Chongqing to just five days, from where goods can reach Europe in less than two weeks.
In addition to its strategic location, Chongqing is also a major manufacturing hub, responsible for producing about one-third of the world’s laptops, a large center for electric vehicle production, and a key export center for a quarter of China’s cars. Some observers believe that China’s motives for utilizing this city are not only logistical but also geopolitical in nature. The trade war with the United States under President Donald Trump highlighted the dangers of relying on international maritime routes under Western influence, such as the Suez Canal and the Hormuz and Malacca straits. The coronavirus pandemic further underscored these risks, revealing the fragility of maritime supply chains.
