Chongqing to Extend Freight Cost Deductions to China-Laos & China-Vietnam Railways

Chongqing—On February 7, Sun Xiyong, deputy director of the Chongqing Municipal Commission of Commerce, announced plans for 2025 to support the city's foreign trade growth. Key measures include digital trade, cross-border e-commerce, and overseas warehousing.

Officers of Chongqing Customs District are conducting on-site supervision of imported and exported vehicles at the Chongqing Railway Port. (Photo/Chongqing Customs District)

In 2024, Chongqing's foreign trade reached 715.42 billion yuan (about USD 98.18 billion), showing positive growth and positioning the city among the top performers in Western China. 

Sun emphasized expanding exports of EVs, lithium batteries, solar cells, and auto parts while boosting imports of high-end equipment. Chongqing aims to develop auto parts and electronics hubs and adopt bonded maintenance and remanufacturing to drive foreign trade growth.

In 2024, Chongqing's foreign investment grew by 5.3%, with Singapore as the top investor. The China-Singapore (Chongqing) Demonstration Project on Strategic Connectivity (CCI) saw 32 new projects worth $300 million, and cross-border financing hit $1.1 billion. The New International Land-Sea Trade Corridor (ILSTC) cargo volume rose 41%, with a 67% increase in value.

Li Yan, deputy director of the Port and Logistics Office of Chongqing Municipal People's Government, outlined plans to expand transportation routes in 2025, with regular service to Jakarta, Haiphong, Ho Chi Minh City, and the Laem Chabang route. Additionally, the city aims to test new rail-sea intermodal routes and cross-border schedules involving Laos, Thailand, and China in the first quarter.

China-Laos-Thailand-Malaysia cross-border railway train service achieves two-way operation. (Photo/Chongqing Municipal Commission of Commerce)

Sun also outlined plans for Chongqing's digital transformation. The city aims to launch comprehensive foreign trade platforms by 2025 and offer full-chain support for businesses. The Free Trade Zone will drive innovation in intelligent,, connected new energy vehicles, enhancing the city's automotive competitiveness. Additionally, Chongqing is collaborating with Singapore to secure regional certification for its meat products, expanding export opportunities.

Chongqing's unique inland position and customs supervision areas, such as bonded zones, play crucial roles in its foreign trade growth. The city's seven bonded zones currently cover rail, road, water, and air transport, and in 2024, these zones accounted for 64.7% of the city's total import-export trade.

By 2025, Chongqing plans to foster the differentiated development of its various bonded zones. The Jiangjin Comprehensive Bonded Zone will focus on building a hub for bulk commodities like non-ferrous metals and minerals, while the Yongchuan Comprehensive Zone will become a manufacturing base for high-end equipment and automotive parts. The city is also exploring new business models in its bonded zones, such as developing aircraft engine maintenance services and supporting the automotive industry with key parts testing.

As of the end of 2024, the CCI has seen significant success, with 323 projects totaling $25.75 billion signed and $21.3 billion in cross-border financing projects. Singapore has remained Chongqing's largest foreign investor, and the city's land-sea trade route to Singapore saw a 59.9% increase in transportation volume.

2025 marks the 10th anniversary of CCI's launching. (Graphic/Zheng Ran)

Sun noted that 2025 marks the 35th anniversary of China-Singapore diplomatic relations and the 10th anniversary of the CCI. Moving forward, Chongqing will work with Singapore to elevate the international cooperation of the ILTSC. The city aims to exceed 270,000 TEUs in cargo volume and facilitate $1 billion in cross-border financing. The city also plans to explore new pilot projects in digital currency and cross-border settlements.

Chongqing's government has rolled out the domestic section of the ILSTC freight cost reduction policy, reducing tax burdens on businesses by 60%. Chongqing Customs District also announced plans to extend this cost reduction to the China-Laos and China-Vietnam freight routes to further facilitate trade.