Inside China’s $380 billion Belt and Road export triumph From Beijing to Berlin

China has significantly expanded its influence across Europe without resorting to military force, achieving a staggering $380 billion in exports through its Belt and Road Initiative (BRI) since 2011. The cornerstone of this initiative, the China-Europe Freight Train service, has revolutionized intercontinental trade in just over a decade.

On July 1, 2024, Beijing launched its first train to Moscow for the year, marking a significant journey between the capitals of China and Russia. This service, managed by the China Railway Beijing Bureau Group Co., Ltd., has been running monthly since a trial run in March of the previous year, Caliber.Az reports, citing foreign media.

The China-Europe freight train, often referred to as a “steel camel caravan,” has been a tremendous success story over its 13-year history. Since its inception in 2011, the service has transported over 8.7 million containers valued at more than $380 billion. The annual value of goods transported has skyrocketed from $8 billion in 2016 to $56.7 billion last year, highlighting its growing importance in international trade.

The China-Europe Railway Express (CRE), a flagship project under the BRI, was initiated in 2011 by the China State Railway Group. It connects cities across Central Asia and Western Europe, beginning with the first freight train journey from Chongqing to Duisburg, Germany, via Kazakhstan, Russia, Belarus, and Poland. By the end of 2021, 49,000 freight trains had travelled between China and Europe, transporting 4.4 million containers.

Initially transporting IT products, the trains now carry over 50,000 varieties of goods across 53 categories, reflecting strong market demand. This includes a growing number of Chinese-made “tech-intensive green trio” products such as lithium-ion batteries, photovoltaic products, and new energy vehicles (NEVs). The maximum capacity of each freight train has increased from 25,000 tonnes to 30,000 tonnes.

The rail transport offers a balanced solution between the affordability of maritime shipping and the speed of air freight. It can transport a full load of 40x40-foot containers per trip, carrying up to 8 million pounds of goods—equivalent to two fully loaded Boeing 747s. In recent years, rail freight has emerged as a cost-effective alternative to air freight, providing faster transit times than sea freight, with transportation costs ranging from USD 7,000 to USD 9,000 per trip.

The CRE has established a comprehensive logistics network covering the Eurasian continent, facilitating international trade and broadening the channels for Chinese goods to reach global markets. It has connected 120 Chinese cities with 219 European cities, ensuring reliable international trade even during challenges such as the COVID-19 pandemic, when it delivered 9.97 million epidemic prevention and control items to European countries.

Launched by Chinese President Xi Jinping in 2013, the BRI aims to enhance land-based connectivity across Central Asia, Africa, and Europe, with investments in infrastructure such as railway networks and energy pipelines. It spans six economic corridors and extends to maritime regions, involving 140 countries and impacting more than 65% of the world’s population, with estimated costs reaching up to $8 trillion.

While the China-Europe freight train service stands as a testament to logistical achievements under the BRI, it also serves as a crucial piece in China’s geopolitical strategy. Defence analysts view the BRI as a means for China to exert influence, sometimes leading to concerns over debt entrapment among developing nations. With China’s economy rebounding and trade with the EU expanding, demand for the China-EU freight trains is expected to remain robust.

However, not all nations view the BRI favourably. India, in particular, sees it with caution, perceiving it as a means for China to expand its influence globally. In response, India has joined with other nations to challenge the BRI through initiatives like the India-Middle East-Europe Economic Corridor and projects such as the International North-South Transport Corridor (INSTC) with Russia and Iran.

As these freight trains continue to traverse Eurasia, they carry more than goods—they embody competing visions for the future of global trade and influence, shaping the geopolitical landscape of the 21st century.