More steps to unlock potential of trade corridor

The planned restructuring of Chongqing Port Co and Beijing-headquartered China Logistics Group Co (China Logistics) is expected to boost the growth of the New International Land-Sea Trade Corridor and further unlock the economic potential of China's western region, said market watchers on Wednesday.

Chongqing Port said on Monday that it had received a notification letter from its parent company, State-owned Chongqing Logistics Group, regarding a planned strategic asset integration with China Logistics.

This integration could potentially lead to a change in the controlling shareholder and the actual controller of Chongqing Port. The company emphasized that the integration is currently in the planning stages and will require approvals from relevant authorities before it can proceed.

This follows State-owned automakers Dongfeng Motor Corp and Changan Automobile — a subsidiary of China South Industries Group Corp — announcing plans to restructure their controlling shareholders on Sunday.

Zhao Yifei, an associate professor at Shanghai Jiao Tong University who specializes in the logistics sector, said this move is seen as a key step in deepening reforms at State-owned enterprises and accelerating resource integration in China's logistics industry this year.

"The potential merger is likely to boost the efficiency and capacity of the New International Land-Sea Trade Corridor, a key logistics network connecting China's western regions with global markets," said Zhao.

With an operational hub based in Southwest China's Chongqing municipality, this trade corridor connects global ports via railways, sea routes and highways through China's provincial-level regions such as the Guangxi Zhuang autonomous region and Yunnan province.

The Chongqing municipal government and China Logistics had conducted multiple rounds of talks to push the development of the New International Land-Sea Trade Corridor.

They signed an agreement to jointly establish a new logistics service company last year, aiming to expand services categories for manufacturing businesses, boost port logistics operations, and develop specialty goods logistics services and bulk commodity supply chain integration.

According to data released by the Chongqing municipal government, more than 251,800 20-foot equivalent units (TEUs) of goods were transported through Chongqing via the trade corridor in 2024, with the total value reaching 46.7 billion yuan ($6.39 billion), up 41 percent and 67 percent year-on-year, respectively.

Speaking at a news conference in Beijing last month, Lin Qingmiao, head of the bureau of enterprise reform under the State-owned Assets Supervision and Administration Commission of the State Council, said the government will prioritize the restructuring and integration of SOEs this year to further advance the structural adjustment and optimization of the State-owned economy.

Lin said that China will speed up the allocation of State capital to critical industries related to national security and the lifeline of national economy, public services, emergency response capabilities, public welfare and strategic emerging industries.

The strategic asset integration between Chongqing Port and China Logistics could lead to greater synergies in terms of operations, resource allocation and strategic planning, said Jiang Xiaobing, secretary-general of Chongqing International Logistics and Port Service Association.

By building large logistics service groups, modern transportation infrastructure, fostering innovation and attracting investment, Jiang said, China aims to create new economic opportunities in its western regions and reduce the disparity between regions, ultimately contributing to the country's long-term prosperity.