China’s historic hub of Xi’an revitalised as key trading crossroad under Belt and Road Initiative
The city was the eastern starting point of the ancient Silk Road, one of the world’s most famous and oldest trade routes, but faced a long period of decline with the fall of the Tang Dynasty in the tenth century.
The capital for 13 dynasties in Chinese history, Xi’an is once again a critical hub today, this time for a contemporary infrastructure project which aims to connect Asia, Europe and Africa.
XI’AN: China’s former imperial capital of Xi’an has emerged as an important crossroad on the trading route from eastern China to central Asia with the development of the Beijing-led Belt and Road Initiative (BRI).
The city has seen the creation of new jobs and a boost in total imports and exports due to improved connectivity brought about by the multi-billion-dollar project, which marks its 10th anniversary this year.
China marked the occasion by hosting a two-day forum in its capital Beijing attended by Russian President Vladimir Putin, which started on Tuesday (Oct 17).
It is the first major multilateral event since the start of the pandemic which China is hosting in relation to the BRI.
IMPORTANT CROSSROAD
Xi’an was identified as a key node due to its strategic location in the heart of China, along with its historical significance.
It was the eastern starting point of the ancient Silk Road, one of the world’s most famous and oldest trade routes, but faced a long period of decline with the fall of the Tang Dynasty in the tenth century.
The capital for 13 dynasties in Chinese history, Xi’an is once again a critical hub today - this time for the contemporary infrastructure project which aims to connect Asia, Europe and Africa.
Specialty food products from Central Asia, such as snacks, edible oil and honey, are now easily spotted in the supermarkets of Xi’an, thanks to a vast infrastructure network in the region.
Most of the goods arrive via the Xi’an International Port, the largest inland port in the city from where more than a dozen cross-border freight trains also run daily between Xi’an and Central Asia and Europe.
The first train service was launched 10 years ago, and has now expanded to 17 international lines, with regular stops in 45 countries along the BRI network.
The freight train has cut travel time to Europe by a month. It now takes just 10 days, compared to between 45 and 55 days in the past overland and by sea.
“When the Chang An China-Europe freight train service was first launched in 2013, it was mainly carrying local products such as Shaanxi's local brick-making machines, petroleum machinery and equipment, and plastic films. Today, the source of goods comes from more than 23 provinces and cities,” said Mr Yuan Xiaojun, general manager of Xi’an Free Trade Port Construction and Operation.
Shaanxi is the province in which Xi’an is located.
BOOSTING JOBS AND EXPORTS
Aiju Grain and Oil Industrial Group, which has been making use of the cross-border freight train service since 2015, regularly imports grains and vegetable oil from farmers in Kazakhstan.
It plans to invest another US$20 million this year to expand the range of goods traded with the Central Asian country.
Mr Liu Dongming, the firm’s general manager, told CNA: “The Belt and Road Initiative is beneficial to the country, the people and the enterprises. We have driven local agriculture.” He added that his company has employed more than 100 people locally.
“Of course, with the continuous expansion of the scale of our enterprises, we have created more jobs, which has led to the expansion of upstream and downstream enterprises. For Kazakhstan, our imported grains bring them foreign exchange income,” he said.
Beyond freight trains, Xi’an now also has direct flights to all five Central Asian countries.
The improved connectivity has increased total imports and exports in Shaanxi Province to about US$70.4 billion in 2021, five times more than in 2012.
“The market share has grown. At the same time, at the national level, we have more agricultural products to supplement our country, which ensures that we have stability in not only quantity but also quality,” said Mr Liu.
MORE SOPHISTICATED
Apart from benefitting China alone, the BRI has also become a major force in global capacity building, according to analysts.
“It has gone on to evolve into sophisticated infrastructure, which includes the Digital Silk Road, the Arctic Silk Road, the Polar Silk Road,” adjunct senior research fellow Lim Tai Wei from the National University of Singapore’s East Asian Institute, told CNA.
“The Polar Silk Road, in that sense, is rather sophisticated because you need special ships to travel through those regions. The Digital Silk Road certainly will involve Industry 4.0 technologies. And then during the pandemic, it evolved into the Health Silk Road with the emphasis on vaccines and personal safety equipment.”
