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Khorgos expands role as major trade hub

Rising workforce, mutual visa-free policies and logistical innovations elevate business opportunities to new heights

By Ren Qi | China Daily | Updated: 2025-09-18 09:29
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Ferrywoman Gao Yun has the car's QR code scanned for Customs clearance at an inspection site at the Khorgos land port in the Xinjiang Uygur autonomous region on June 11. CHEN SHUO/XINHUA

Khorgos, located in the Ili Kazakh autonomous prefecture of Northwest China's Xinjiang Uygur autonomous region, carries a name that reflects its past and present. In Mongolian it means "the place where camel caravans pass", while in Kazakh it is understood as "the place where wealth accumulates".

Laden camels once moved through this key node of the ancient Silk Road with silk, porcelain and tea, forming a living bridge of trade and cultural exchange between East and West. Today that overland spirit has been reimagined as the border city evolves into China's largest land port for automobile exports.

A new kind of caravan now departs daily — lines of gleaming Chinese-made new energy vehicles bound for Central Asia.

Local drivers call themselves ferrymen, and they pilot newly produced units across the border, park them at designated handover points inside Kazakhstan for inspection and acceptance, then board international coaches to return and repeat the cycle. This so-called ferryman self-driven delivery model has become a distinctive logistical innovation rising from the frontier.

Compared with traditional multilevel car-carrier trailers, the ferryman approach is more flexible, quicker to organize and lower in cost, sharpening the price competitiveness of exported vehicles.

Overseas importers have increasingly adopted the method. Last year, it helped companies save about 150 million yuan ($21.1 million) in logistics costs via Khorgos Port, while ferrymen collectively earned over 90 million yuan in income.

Meanwhile, the expanding workforce has generated new local jobs and even attracted labor from inland provinces to seek opportunities in Khorgos.

The mutual visa-free policies between China and Kazakhstan, coupled with streamlined coordination among Customs, immigration and other border authorities, have enabled a more convenient outbound clearance path.

At daybreak, before the first shaft of light fully washes over the highway port, operations are already in motion.

Gao Yun, a 45-year-old ferrywoman and one of a growing number of female drivers in the field, arrived early for another run. Vehicle checks, document verification and careful, low-risk driving: she executed each step with silent precision.

"Don't underestimate these trips," Gao said. "Every car carries the quality and image of China's new energy sector. We cannot afford a single mistake."

As China's NEV industry scales up, demand from Central Asian markets has risen, and Chinese electric and hybrid models have become a familiar sight on the urban streets of Kazakhstan.

"NEVs are gaining more popularity overseas. Being part of that process feels especially meaningful," she added, pride evident in her voice.

Data from the Khorgos border inspection station show that by June 13 this year, 56,000 China-made vehicles had exited via the ferryman model, a year-on-year increase of 21.6 percent.

Yet automobiles are only one dimension, as Xinjiang is leveraging the geographic advantages of Khorgos to consolidate its role as a gateway channeling diversified Chinese goods into Central Asia's evolving consumer and industrial markets.

At the Khorgos Yiwu International Trade Center, most clients arrive from neighboring Central Asian countries. Deputy General Manager Ma Tingting said repeat buyers frequently become close friends.

"They often bring specialties from their countries — melons, felt hats or handicraft ornaments. I give small gifts in return and invite them to sit for tea. Business keeps growing through these exchanges, but compared with the orders we sign, the friendships are more precious," she said.

Chen Yu, deputy director of the Institute of Eurasian Studies at the China Institutes of Contemporary International Relations, noted that Xinjiang's unique position enables it to play a pivotal role in aligning the Belt and Road Initiative with mechanisms such as the Eurasian Economic Union.

In 2024, over 16,000 China-Europe (and China-Central Asia) freight railway express trips passed through just the two Xinjiang ports of Alashankou and Khorgos, accounting for more than half of the national total. The intensity of traffic underscores how inland regions are transforming geography into structured openness, Chen said.

Building on physical connectivity, Xinjiang has pursued institutional innovation to facilitate higher-level openness under the BRI-Eurasian Economic Union interface, Chen added. New models such as "highway port plus inland direct linkage "and mutual recognition that allows foreign vehicles to circulate through multiple ports have emerged, he noted.

The China (Xinjiang) Pilot Free Trade Zone, occupying only one ten-thousandth of the region's land area, now generates about 40 percent of Xinjiang's total foreign trade, said Chen. Policy experimentation at scale has become a catalyst for broader integration.

Logistics advantages are also being converted into industrial competitiveness, marking a shift from "channel economy" to "industrial economy", said the expert.

Chen hailed Xinjiang as a pioneer of the "freight train plus overseas warehouse" model that allows the region's dried fruits to reach Central Asian supermarket shelves within 48 hours while trimming logistics costs by 30 percent.

In the first five months of this year, Xinjiang's total imports and exports with the five Central Asian countries exceeded 100 billion yuan, representing 39.4 percent of China's overall trade with the region.

Exports of NEVs and large-scale equipment surged 102.4 percent year-on-year, while agricultural product exports rose 100.1 percent, reshaping a pattern once dominated by mineral commodities.

Xinjiang's bond with Eurasian Economic Union members extends beyond commerce. It is rooted in cultural affinity and mutual benefit for livelihoods — an intangible competitive edge. Within the first three months of the establishment of the China Xinjiang-Central Asia Tourism Cooperation Alliance, three cross-border tourist routes were launched.

"This emotional linkage translates directly into economic resilience, making cooperation more sustainable," Chen said, highlighting how people-to-people trust underpins long-term frameworks.

Since 2023, Khorgos has unveiled platforms including the China Khorgos-Central Asia Joint Media Workstation, a China-Kazakhstan joint media workstation and an all-media exchange base.

Branded as a media center for exchanges between Chinese and Central Asian outlets, the hub has attracted more than 40 media organizations from home and abroad.

Supported by agricultural exhibitions and China-Kazakhstan trade fairs, it regularly hosts international media salons to foster dialogue.

Yevgeny Kochetov, deputy minister of culture and information of Kazakhstan, said regular interactions and joint interviews are elevating people-to-people exchanges to new heights, reinforcing mutual trust and paving the way for expanded cooperation.

In addition to media exchanges, Xinjiang is also playing an important role in people-to-people interaction between China and Central Asian countries, as a growing number of Central Asians are studying Chinese in the region.

In a classroom at the Khorgos Yiwu International Trade Center, students of the Kazakh-Chinese International Language Institute sit in a circle, carefully following a Chinese teacher as they read aloud the words written on the blackboard.

In April, as part of the first cohort to arrive in the Khorgos section of the China (Xinjiang) Pilot Free Trade Zone, they began internships at enterprises such as the Yiwu International Trade Center while simultaneously receiving training under "Chinese plus cross-border e-commerce" and "Chinese plus international trade" curricula.

This marks the entry of the dual-track "Chinese plus vocational skills" talent training model, jointly developed by Khorgos and the Kazakh side, into a practical phase of integrating industry with education.

For 18-year-old Kazakh student Rufina Chepasova, new opportunities are tangible. She has been simultaneously studying Chinese and learning cross-border e-commerce livestreaming techniques.

"Chinese teachers show me how to interact with viewers and enhance user experience," she said. Her phone stores numerous clips of Chinese presenters selling goods — videos she replays during breaks.

"When I first arrived, I could only manage simple greetings; now I can confidently pitch products. I hope to make more Chinese friends and introduce more quality goods from Kazakhstan to China — and from China to Kazakhstan through Xinjiang," she said.

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