Yiwu has long been recognized as one of China's largest export hubs, a bustling center where containers are filled with goods destined for markets around the globe. However, it has also been taking on another role: serving as a consolidation point for European products entering China and, in some instances, being re-exported to third markets. This development provides valuable insight into the potential growth of China-Europe trade relations. According to a report by Yiwu Fabu, the city's official social media account, from January to August, goods arriving through the “Yiwu-Xinjiang-Europe + B Bonded Logistics” model in Yiwu reached CNY2.236 billion, up 60.29% year-on-year. The model relies on the Yixin'ou (Yiwu-Xinjiang-Europe) China-Europe Railway Express, which has been in service since 2014, and has become a crucial trade route connecting Europe with Yiwu. In Yiwu, there is a bonded logistics center where goods imported to Yiwu via the China-Europe Railway Express can then be re-exported through the “B Bonded Logistics” system, utilizing sea-rail intermodal transport or road transport to reach countries like Vietnam, Malaysia, and Thailand.
The China-Europe Railway Express has played an important role in enabling the fast and cost-effective transport of made-in-China products to Europe. However, the issue of what goods are brought back on the return trips and whether there is an imbalance in the number of journeys in each direction has been a topic of discussion in recent years. Yiwu has developed an efficient rail transport network with numerous European cities via the China-Europe Railway Express. This network provides a faster alternative to sea freight and is more cost-effective than air transport, making it easier for European businesses to export to China. The efficiency and convenience of this network have made it an appealing choice for European companies aiming to enter the Chinese market.
Yiwu has a strong re-export capability. Goods imported from Europe can be distributed not only within China but also to other countries and regions through Yiwu's extensive sales network. This makes Yiwu a key distribution hub for European imports, enhancing its role in global trade and offering European exporters wider market access beyond Yiwu. The city's dedication to increasing imports from Europe is evident in its proactive policy measures. This year, the Yiwu Bonded Logistics Center has taken advantage of a new wave of comprehensive international trade reforms to boost openness and growth. From January to August, the center achieved a significant increase in import value, setting a new record and surpassing last year's total.
Yiwu is not unique in its approach. Other hubs along the China-Europe rail network are also enhancing their import strategies. For instance, in June, a shipment of vehicles arrived at a bonded warehouse in Chongqing Municipality before being distributed to 4S dealerships across China's western provinces. According to the People's Daily, since 2014, more than 40,000 European cars have been transported to Chongqing by rail and subsequently distributed to more than 10 provinces in the southwest and northwest. This mirrors the pattern seen in Yiwu: inland gateways using rail to bring European goods closer to end-markets and then using logistics to finish the job. The model of utilizing return trips on the China-Europe rail network to boost exports to China shows potential for further growth. Of course, challenges persist, and continued efforts are necessary. The diverse efforts taking place in various Chinese cities highlight the untapped potential of China-Europe trade, paving the way for increased European exports to China, the Global Times reports.
