China redraws trade routes with new railway to Europe

With rising global tensions and growing risks to shipping, China is reshaping its trade strategy by constructing a new railway to Europe — one that deliberately avoids its close ally, Russia.

The new railway, which runs through Kyrgyzstan and Uzbekistan, is designed to provide a more direct and reliable connection to European markets — bypassing Russian territory entirely. Since Russia’s invasion of Ukraine in 2022, the traditional overland route through Russia has become less dependable due to sanctions, higher insurance costs, and mounting safety concerns. As a result, many European companies have turned away from it.

Now, freight is being routed through Kazakhstan to the Caspian Sea, and from there via Azerbaijan and Turkiye — a path known as the “Middle Corridor.” The railway under construction aims to enhance this corridor by shortening the route and boosting efficiency. Spanning 520 kilometers, the new line is supported by a $2.35 billion loan from China to Kyrgyzstan to fund its development.

While this alternative route is still more expensive and slower than the Russian path, recent upgrades have significantly reduced travel times — from over 50 days to just under 23. For comparison, shipping goods by sea typically takes around a month. Despite these challenges, rail trade between China and Europe has grown dramatically — from $8 billion in 2016 to $57 billion in 2023.

The importance of the Middle Corridor has increased even further following Houthi attacks in the Red Sea, which have intensified concerns over the security of sea-based trade.

Although China continues to maintain strong trade ties with Russia — especially for energy and raw materials — it is actively seeking faster and safer export routes to Europe. Both China and the European Union are looking to bypass Russia, though each has its own strategic motivations for doing so.

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