The launch of the China-Laos Railway express service in January 2022 has significantly lowered transportation costs for Southeast Asian fruit exports to China. According to recent reports, logistics costs have dropped by 60 per cent compared to traditional overland shipping, while average retail prices for these imported fruits in China have fallen by 30 per cent.
This reduction in transport costs has played a major role in improving market access and affordability. Xu Liping, director of the Center for Southeast Asian Studies at the Chinese Academy of Social Sciences, noted that infrastructure projects such as the China-Laos Railway are reshaping regional trade dynamics by improving supply chain efficiency and shortening delivery times for perishable goods like fruits and vegetables.
For Chinese consumers, the impact is already visible. In Beijing's Xinfadi wholesale market, durian prices have fallen significantly. A 16-kilogram box of Golden Pillow durian, previously priced between 1,100 and 1,200 yuan (US$153–167), now sells for 730–780 yuan (US$102–109), according to a local vendor.
Thailand, a key exporter of durian, mangosteen, longan, rice, and cassava, is positioned to benefit from the improved logistics. With China remaining Thailand's largest trading partner, the lower shipping costs are expected to further boost bilateral agricultural trade. In 2024, trade between the two countries reached US$133.98 billion, a 6.1 per cent increase year-on-year, according to China's General Administration of Customs.
Thailand is now intensifying its export strategy, prioritizing cassava and rice alongside existing fruit exports. Thai Commerce Minister Pichai Naripthaphan confirmed over the weekend that these efforts are part of a broader campaign to tap into growing Chinese demand and leverage regional infrastructure improvements.
The enhanced connectivity also supports the objectives of the Belt and Road Initiative (BRI), aimed at fostering economic cooperation and development across Asia. The China-Thailand High-Speed Railway, another BRI project, is expected to be completed by 2030 and will provide streamlined cargo services that further reduce time and cost in cross-border trade.
Xu emphasized that reduced transport costs benefit both sides, supporting Thai farmers and exporters by opening more competitive markets, while offering Chinese consumers more affordable, high-quality produce. He also pointed to ongoing regional integration through agreements like the China-ASEAN Free Trade Agreement and the Regional Comprehensive Economic Partnership, which are expanding access to Chinese markets and enhancing investment flows across the region.
Source: Global Times
