Transporting new energy vehicles by Eurasian freight train, a positive signal coming?

On September 5, China’s Ministry of Commerce stated that it will study the expansion of export transportation channels, including transporting new energy vehicles through the Eurasian rail connection and the China-Europe freight train.

In recent years, China’s automobile industry, especially the new energy automobile industry, has developed vigorously. From January to July this year, the export of new energy vehicles increased by more than 90% year-on-year, becoming a highlight of foreign trade. However, the railway transportation of new energy vehicles is strictly restricted in China because of the lithium battery products. New energy vehicles are unable to be shipped to Europe via the fast-growing China-Europe freight trains.

For the past two years, numerous companies have called on China’s railway authorities to loosen restrictions on the transport of dangerous goods. One of the most famous is Geely Automobile. Geely Auto is the first private enterprise in China to be approved to produce cars. The founder Li Shufu has repeatedly said that the railway transportation of new energy vehicles should be promoted.

In addition, a number of European companies and railway operators, including Deutsche Bahn, have also expressed their hope to see progress in China in loosening restrictions on the transportation of dangerous goods.

This is the first official statement made by the Chinese government on railway transportation of new energy vehicles. Experts believe that this move has released a positive signal for the transportation of dangerous goods by railway in China. China Railway and its research institutions may have completed relevant investigations and studies in the past two years and achieved positive results. This is also one of many measures China is taking to deal with the slowdown in economic growth, experts said.

In addition, the Chinese Ministry of Commerce also stated that it will work with relevant departments to provide more convenience and support for foreign trade enterprise personnel to carry out business activities abroad.

Due to strict epidemic prevention and control, it is very inconvenient for Chinese and foreign business people to enter and leave China, which has largely affected bilateral economic and trade cooperation over the past two years.