China’s world-class railway technology has already begun to pay geopolitical dividends with its neighbours, as numerous cross-border lines are helping to expand connectivity and enhance relations between Beijing and its regional trade partners.
At least four railway projects have been constructed or are being planned between China and nearby countries, including a connection project with Mongolia in the north, a 523km railway extending to Kyrgyzstan and Uzbekistan in the west, and high-speed links with Vietnam and Thailand in the south.
“Nearly 60 per cent of Asia’s trade takes place within Asia, and this will continue to grow in the coming years,” said Kyle Freeman, partner at consulting firm Dezan Shira & Associates. “So it makes sense that countries want to increase trade and transport connections with the largest economy in the region, in most cases also their largest trade partner.”
On February 14, China and Mongolia signed a strategic partnership agreement on the joint construction of the 19.5km Gashuunsukhait-Gantsmod cross-border railway.
“It is all about cargo terminals and transshipment; negotiations are under way,” said Gantumur Luvsannyam, Mongolia’s first deputy prime minister, in an interview with the Post. “Containerised shipments – it’s about the handling of those containers.”
