Europe and Central Asia And China Connecting to Build a New Economic Powerhouse

CHina SUmmit

While the United States is separating its economy from Europe and many regions in Asia due to the latest tariffs by the Trump Administration, China is working overtime to rescue Europe and Central Asia to build an economic powerhouse.

Taking the rail from Europe to the Pacific, bypassing Russia, may also be a new tourism activity in the future. European Council President António Costa and European Commission President Ursula von der Leyen visited Uzbekistan in April to attend the inaugural Central Asia-European Union Summit. The presidents of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan participated in the summit.

The summit allowed the EU to show its interest in boosting bilateral engagement and expanding regional cooperation with Central Asian countries, demonstrating the growing strategic importance of the relationship between Central Asia and the EU in the changing Eurasian geopolitical landscape.

Last year, the G7 countries announced that they were ready to invest up to $200 billion in infrastructure projects in Central Asia.

Given the growing importance of the trade corridor connecting China with Europe and Central Asia, cooperation in regional transportation is set to substantially affect the economies of Europe, Central Asian nations, and China.

Rail freight volumes between China and Europe, via Central Asia, continue to grow rapidly. In 2024, trains made 19,000 trips, a 10 percent increase from the previous year. They transported over 2 million TEUs (twenty-foot equivalent units) of cargo, representing a 9 percent increase from the previous year. First launched in 2011 as part of China’s Belt and Road Initiative, the service has linked 227 cities across 25 European countries and more than 100 cities in 11 Asian countries. By Dec 3, 2024, more than 11 million TEUs of goods have been transported, with total value exceeding $420 billion.

European nations aiming to decrease reliance on the China-Russia rail route have spearheaded the creation of a more direct path through Central Asia, called the Trans-Caspian International Transport Route, also known as the Middle Corridor.

This network mirrors the historic Silk Road, connecting China and Europe through Central Asia, the Caspian Sea, and the South Caucasus, with the final destinations being Turkey and the Black Sea. Launched in 2017, the Middle Corridor is a versatile transportation system utilizing established rail and port facilities.

image 11 | eTurboNews | eTN

Freight traffic on the Middle Corridor surged by 63% in the initial 11 months of 2024, totaling 4.1 million metric tons. Concurrently, container traffic experienced a 2.7-fold increase, particularly with shipments from China soaring by 25 times. The World Bank anticipates that by 2030, the enhancement of transport infrastructure could elevate annual rail transport volumes on the Middle Corridor to 11 million tons.

To achieve this, the EU committed 10 billion euros ($10.8 billion) to infrastructure through its Global Gateway initiative and is contemplating increasing its involvement.

Despite the EU’s goal of advancing the Middle Corridor to avoid Russia, there is a possibility that this effort could unintentionally improve Russia’s global connections by linking the Middle Corridor with the upcoming International North-South Transport Corridor. This transport route spans 7,200 kilometers and integrates road, rail, and maritime passages through Azerbaijan and Iran.

The Middle Corridor will facilitate active trade between Central Asian and South Caucasian countries. To maximize its development, the EU could leverage it on two fronts. The first front is internal and concerns the Central Asian and South Caucasian countries. The second front is external and involves China and Turkiye.

The Middle Corridor could empower China to boost economic connections across the entire pathway towards the West. This expansion would bolster China’s economic impact in Central Asia and the Caucasus.. By granting China entry not just to Europe but also the Middle East, the corridor’s growth could transform the economic and geopolitical layout of Eurasia, significantly impacting global trade patterns and regional power structures.

Turkiye, as the primary entry point for the Middle Corridor into Europe, stands to benefit from its progress. This offers Europe an opportunity to underscore to Ankara the significance of Turkiye in the EU’s external matters. By proceeding in this manner, Europe can solidify Turkiye’s` backing of the EU’s initiatives for the Middle Corridor and enhance relations with Central Asian countries.

The EU’s current infrastructure commitment is expected to go beyond just connectivity. For the Middle Corridor to truly thrive, it should evolve into a comprehensive economic corridor that integrates energy and industrial ventures along its path, thereby boosting the regional economy significantly.

The East-West railway routes in Central Asia will soon meet the North-South railways being built. These railway lines will link Russia and Central Asia via Afghanistan, Pakistan, Azerbaijan, and Iran to the Indian Ocean’s deep-water ports. This convergence will turn Central Asia into a key transportation center for all of Eurasia.

The China-Europe railway bridge across Central Asia is a vital lifeline for all countries along the Great Silk Road. It symbolizes the revival of ancient trade routes and fosters cultural and humanitarian exchanges between the East and the West.

This new route will connect people and communities, strengthen cooperation, and open doors to countless opportunities for development and prosperity in the region. Further development of these railways will enable all countries along the legendary Silk Road to trade and collaborate, thereby enhancing the competitiveness of all parties involved.

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