Corridor

Corridor Of Power: China’s Inland Hub Connects to ASEAN

Thanks to the New International Land-Sea Trade Corridor, trade and economic cooperation between inland China and Southeast Asia are growing fast.

China’s New International Land-Sea Trade Corridor (New ILSTC) is a critical component of the Belt and Road Initiative (BRI), linking the western inland regions to global maritime routes and—it is hoped—enhancing connectivity with ASEAN countries.

Last year was a very, very good year for the New ILSTC. And momentum is expected to continue in 2026.

The corridor’s rail-sea services handled 1.425 million TEUs of cargo in 2025. That’s up 47.6% year-on-year and surpassing 1 million tons for the first time with some 1,300 to 1,316 categories shipped, including electronics, vehicles, auto parts, and machinery. Trade value between January and October of last year saw combined imports and exports via the New ILSTC reach 1.35 trillion yuan ($196 billion), up 17.9% year-on-year.

“Trade between China and ASEAN has surged since 2017, when the New International Land-Sea Corridor was introduced, with ASEAN’s share of China’s exports surging from 12.4% to 17.6% in 2025,” notes Lynn Song, chief economist, Greater China at ING in Hong Kong. “It seems like there are local plans to continue to expand these logistics channels, which should continue to contribute to trade growth between China and ASEAN overall.”

From Beijing’s perspective, trade growth was nothing short of spectacular in the first two months of this year.

Shipments from China to Southeast Asia in dollar terms surged by 29.4% in January and February. Overall Chinese exports grew by 21.8% during that period, defying a Reuters economists’ poll in December that predicted 7.1% export growth. Chinese imports also increased overall, rising 19.8% during the same period. But China still booked a record $213.6 billion trade surplus for a 25.3% gain over the same period in 2025: a year when the country’s trade surplus hit an all-time high of $1.2 trillion.

“The share of exports from China to ASEAN economies has steadily grown from around 5.5% in 2000 to more than 15% in 2024,” says Professor Christoph Nedopil Wang, director of the Griffith Asia Institute at Griffith University in Brisbane. “However, there was no significant breaking point: rather, it was a general growth in line with the ASEAN economies’ overall growth. Imports from ASEAN countries, meanwhile, have stagnated over the past five years at around 15% of total imports to China.Chongqing is still relatively small, handling about 251,800 TEU or only 0.5% of Shanghai’s 55 million TEU.”

That is expected to change as the Guangxi Pinglu Canal opens for 5,000-ton vessels later this year, offering river-sea access from inland hubs to southern ports and the ASEAN countries.

“Once the Pinglu Canal is opened at the end of 2026, with its 89 million tons annual capacity, Chinese southwestern inland provinces will be better connected to ASEAN economies by reducing transport times from weeks to days, says Nedopil-Wang. “Furthermore, several ASEAN countries, such as Singapore or Malaysia, could identify new opportunities to fill existing agreements with live programs, such as the Singapore-Chongqing Connectivity project.”

The latter was established in 2015 to enhance connectivity between the two countries and also between landlocked western China and ASEAN. Last December, the links grew closer when Singapore’s Infocomm Media Development Authority and China’s National Data Administration signed an MoU for a Digital New ILSTC, focusing on AI, blockchain, data analytics, and digital economy cooperation. The same month, the People’s Bank of China provided a further boost to the New ILSTC when it outlined a raft of financial support measures aimed at expanding supply chain finance and infrastructure funding for the project, encouraging the use of digital renminbi for settlement and aiming to broaden intra-Asian trade.

“The Land-Sea corridor is likely further strengthening opportunities for China’s exporters,” observes Nedopil-Wang. “But to what extent ASEAN members will benefit from improved export opportunities to China through the corridor depends on their ability to provide attractive industrial or consumer goods relevant to the southwestern regions of China.”

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Corridor for Brits’ holidays is shrinking and is now just 50 miles wide

A crucial 50-mile airspace route through Azerbaijan has become vital for European travellers as Middle East airspace restrictions impact millions of passengers

The flight corridor that dictates whether vast numbers of passengers can reach their destination is getting narrower.

32,432. That’s the number of Middle East flights that have been scrapped since Israel and the US began bombing Iran at the end of February. The tally of affected passengers now runs well into the millions.

Whilst the daily cancellation figure has now dropped considerably to 11% per day, according to analytics firm Cirium, the knock-on effects of the disruption are still being experienced and will continue for some time.

One way the conflict has and will continue to affect travel is by constricting flight corridors. Now, many European holidaymakers are dependent on a roughly 50-mile route spanning three countries.

The flight corridor over Azerbaijan is one that numerous commercial aircraft have been using to travel from Europe to Asia since early March, when the country closed portions of its airspace following drone strikes the Azerbaijani authorities claim had been launched from Iranian territory, reports the Express.

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Author avatarMilo Boyd

Prior to the Iran war, the Azerbaijan path was 100 miles wide at its narrowest points, owing to the Russian invasion of Ukraine to the north. It is now 50 miles wide, with airspace to the south closed off by the Azerbaijan authorities.

Almost three weeks into the Iran war, this route through Azerbaijan, Georgia and Turkey is one of just two available for a majority of long-haul flights between Europe and Asia. The alternative route passes through Saudi Arabia and Egypt. The shortage of accessible airspace is fuelling rivalry amongst airlines competing for routes. It is also rendering air travel more costly and environmentally harmful.

Prior to 2022, flights linking much of Europe and Asia travelled over Russia, via the “Siberian Corridor.” That was regarded as one of the most direct ways to connect the two continents.

Following Russia’s invasion of Ukraine, Western airlines were denied access to the airspace. Now a flight from northern Europe, which would have passed directly over Russia, must take a lengthier route either over the North Pole or around the Black Sea. This can tack on roughly three hours to a nine-hour journey, consuming thousands of pounds more jet fuel and emitting dozens of tonnes more CO2e into the atmosphere.

The alternative route from Europe to Asia that is presently available takes passengers south, via Egypt, Saudi Arabia and the United Arab Emirates. Whilst it is returning to capacity following weeks of disruptions and cancellations, the escalating conflict in Iran means its viability in the long or medium term remains uncertain.

Dubai International Airport is typically one of the globe’s busiest travel hubs, averaging approximately 1,200 departures and landings daily. It, like numerous airports in the region, is still functioning considerably below its standard capacity. This is partly due to the aerial battles taking place overhead. On Friday, the UAE government reported that it had intercepted 338 ballistic missiles, 15 cruise missiles, and 1,740 drones since February 28, Forbes reports. Despite these efforts, at least eight people have been killed in the UAE, and over 150 have been injured.

Ian Petchenik, the communications director for the flight-tracking site FlightRadar24, fears that the narrowing of flight corridors and the uncertain status of major travel hubs is driving up the cost of plane tickets. He told the New York Times: “At some point, we get to the point where airlines have to make the decision: Is this route still economically viable? Is this a route that we can continue to operate long term within these parameters?”

Mr. Petchenik characterises the flight corridor above Azerbaijan as “a very narrow strip of land.”

To increase the number of planes that can fly on a restricted flight corridor, air traffic controllers instruct aircraft to fly at varying altitudes – effectively spreading them out.

However, according to Graham Wild, a senior lecturer of aviation science and technology at the University of New South Wales in Australia, this can trigger other problems. Planes flying at lower altitudes are more vulnerable to weather and turbulence and also consume more fuel, as the air is denser. Extended flight times and the potential for diversions also present staffing challenges for pilots and flight crews.

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