Impact of the China-Pakistan Economic Corridor on the China-Europe and China-Middle East trading route selection

Abstract

This research examines the potential impact of the China-Pakistan Economic Corridor (CPEC) on the selection of trading routes between China, the Middle East, and Europe, with a specific focus on the transportation of a 40-foot standard container carrying general commodities. The study compares traditional routes with the new CPEC routes in terms of time, distance, and cost. The findings indicate that the new CPEC routes offer reduced travel time and distance when compared to the traditional routes across all provinces involved. The research reveals that the cost of road transportation along the new CPEC route is lower for Xinjiang province, but higher for the other provinces. By utilizing the new CPEC routes, the time required for goods to travel from China to the Middle East and Europe will be reduced by 10 to 20 days. Furthermore, the distance covered in this trade route will be shortened by 3,000 to 10,000 kilometres. Specifically, the province of Xinjiang in western China stands to benefit significantly from the new CPEC routes, saving approximately $2,000 on trade with the Middle East and Europe. These findings highlight the potential advantages and economic benefits that can be realized by leveraging the CPEC for trade between China, the Middle East, and Europe, particularly in terms of reduced transportation time and distance.