As the clock struck midnight on January 1, 2025, a China-Europe freight train set off from Xi’an, carrying 50 containers packed with white goods, textiles, and chemicals bound for Tashkent, Uzbekistan. Beyond the symbolism of a New Year’s journey, this train represents something much bigger—a sign of how China’s western provinces are becoming pivotal in global trade.
The First China-Europe Freight Train (Xi'an) of 2025: Xi'an to Tashkent Express Image Source: Xinhua News Agency
The Growing Importance of the West
In recent years, exports like electric vehicles, solar panels, and household appliances from western China to Central Asia have surged.
At the same time, resources like grain and minerals from Central Asia are increasingly flowing into China.
However, compared to the booming eastern provinces, the west is still playing catch-up. Historically, China’s reform and opening-up strategy prioritized the east coastal regions, concentrating industries there to serve major export markets like the U.S. and Japan.
Take 2008, when China's foreign trade dependence peaked: that year, China’s GDP was $4.6 trillion, with trade with the U.S. reaching $333.74 billion, accounting for more than 7% of GDP; trade with Japan was $266.78 billion, accounting for about 5.7% of GDP.
This led to crowded cities, high living costs, and intense pressure on infrastructure in places like the Yangtze River Delta and Pearl River Delta.
A Turning Point: New Policies, New Opportunities
However, things have recently taken a turn for the better.
Western Development + BRI = Western Foreign Trade Boom
On January 5, the General Administration of Customs introduced 15 measures to further promote the formation of a new pattern for Western Development:
Support the construction of international aviation hubs in Chengdu, Chongqing, Kunming, Xi’an, Urumqi, and other cities.
Enhance the cultivation of branded speciality agricultural and food products, promoting exports of advantageous products like vegetables, fruits, tea, medicinal herbs, and alcoholic beverages.
The introduction of these 15 new policies by the General Administration of Customs makes it inevitable to connect the “Belt and Road” policy with “Western Development.”
Does it hold promise? Absolutely!
For instance, the Western Land-Sea New Corridor is a significant transportation infrastructure project under Western Development. This project not only enhances the level of openness in the Western region but also provides a more convenient logistics channel for economic development in the West.
From the map, the Western Land-Sea New Corridor is located in the heart of China’s western region. It connects the Silk Road Economic Belt in the north and the 21st Century Maritime Silk Road in the south, making it highly strategic.
Remember the China-Kyrgyzstan-Uzbekistan Railway we mentioned earlier? This railway runs from Kashgar in Xinjiang to Uzbekistan. Once Central Asia is connected, the central and western regions can directly export products to Central Asia, West Asia, and South Asia via rail, reducing logistics costs and improving the competitiveness of products, especially high-margin mechanical and electrical products.
Looking southward from the Western Land-Sea New Corridor, in December 2024, the corridor launched a Chongqing-Indonesia rail-sea intermodal express service, further facilitating exports to Southeast Asia for Western enterprises.
The Rise of Manufacturing
The western provinces aren’t just catching up; they’re leading in some sectors:
- Shaanxi produced over 1.5 million vehicles in 2024, with 68% being new energy vehicles.
- Xinjiang has become a solar energy giant, producing more than a third of China’s solar products.
- Foreign trade in Xinjiang grew by 28% in 2024, with exports of machinery and electrical products up by 45.4%.
This shift toward advanced manufacturing and high-value industries signals that the west is no longer just about agriculture, tourism, or raw materials.
Xi'an Geely Automobile Co., Ltd. Image Source: Shaanxi Daily
Why Should You Care?
Thanks to strategic initiatives like the Belt and Road, China's western and central regions are now bursting with potential.
For businesses worldwide, this means new markets, lower costs, and easier access to regions like Central Asia and Southeast Asia.
Now is the perfect time to explore how your business can be part of this exciting growth story.
Let’s Grow Together!
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