ILSTC Enhances Local Lemon Exports to Support Mixue's Global Demand

Chongqing - China's foreign trade significantly increased across its eastern, central, western, and northeastern regions in the first seven months of the year, leveraging each region's geographical advantages.

As the hub for the New International Land-Sea Trade Corridor (ILSTC), Chongqing is a key logistics center that boosts east-west connectivity and trade.

In July, chrome ore from South Africa arrived at Chongqing's Guoyuan Port. This key material, vital for manufacturing, is in high demand in Chongqing. The ILSTC now allows faster, cheaper direct shipments, replacing the slower, costlier river and sea transport.

Trucks deliver containers at Chongqing Guoyuan Port. (Photo/Tang Yi)

"Since last September, nearly ten batches of chrome ore, totaling over 10,000 tons, have been directly imported to Chongqing. We expect even more product diversity in the future," said He Li, an official with the Chongqing Customs District.

In the first half of 2024, Chongqing transported goods worth over 23.1 billion yuan (about USD 3.2 billion) via the ILSTC, an 89% increase from last year. This growth, driven by an integrated rail, road, water, and air system, is establishing Chongqing as a key inland trade hub in China.

"ILSTC now connects to 514 ports in 123 countries and regions," said Deng Qian, director of the marketing department of the New Land-Sea Corridor Operation Co., Ltd. "We've expanded our shipping categories from chemicals and motorcycles to over 1,000 varieties, including ores and agricultural products."

The corridor's development is boosting industries in Chongqing's remote areas. Wushan County, famous for plums, harvested 140,000 acres this year and independently managed exports for the first time. After exporting Wushan Crisp Plums to Singapore in 2022, they are now entering the Hong Kong market.

In the first half of 2024, Chongqing's agricultural exports surged to 750 million yuan, a 50% increase and the highest growth in five years. Wushan Crisp Plums and over 30 other specialty products are now being exported to countries like Singapore, Thailand, and Canada. The expanding ILSTC is driving industry integration and opening new markets for Chinese brands.

Chongqing's agricultural exports data in H1, 2024. (Graphic/Zheng Ran)

Xuewang Agriculture Co., Ltd., a Mixue Group subsidiary, has seen a surge in lemon exports from Chongqing's Tongnan District, shipping 103 containers in the first half of the year—a fourfold increase from last year. Exports are mainly to Vietnam, Indonesia, the Philippines, and Malaysia.

Mixue Group, China’s largest bubble tea chain, offers ice cream, bubble tea, and lemon tea. Since opening its first overseas outlet in Hanoi in 2018, it has about 4,000 outlets in 11 countries.

Consumers line up outside Mixue Group's first outlet in Sydney, Australia, on its soft opening day in February 2023. (Photo/China Daily)

Yu Yang, deputy general manager of Xuewang Agriculture, noted that Tongnan’s lemons, with an annual production of 350,000 tons, represent over 45% of China’s lemon exports.

"We estimate our lemon consumption this year will be between 110,000 and 120,000 tons, which will meet the needs of our stores worldwide," Yu emphasized.

Yu mentioned that the ILSTC had enabled the development of a more efficient supply chain, linking agricultural production directly with the consumer market.

Tongnan's lemons. (Photo/Tongnan District)