In 2012, China started to implement a decentralized rail freight subsidy system aimed at stimulating exports from the country’s western and central provinces, such as Chongqing, Sichuan, Hubei, and Henan. The primary focus is on developing trans-Eurasian routes to Europe as an alternative to maritime transport, thereby integrating regions far from the coast into global logistics chains.
Subsidies were provided in two forms: direct support for cargo owners and indirect measures for rail operators. This offset the high cost of rail transport compared to maritime transport and stimulated the growth of export-oriented container flows.
By 2021, the rail system faced congestion: growing demand, limited capacity, and enhanced sanitary checks at borders created serious logistical congestion. This forced the authorities to shift their focus from subsidies to eliminating infrastructure bottlenecks and establishing digitalized processes. In 2021, the State Development and Reform Committee (SDRC) decided that 2022 would be the final stage of providing centralized subsidies for railway transportation in China.
The process of reducing the subsidies was gradual. At their peak in 2018, subsidies covered up to 50% of «economically justified» shipping costs (approximately $10,000), amounting to approximately $5,000 per 40-foot container. In subsequent years, the proportion of support was gradually reduced.
Central subsidies for container shipping in China were phased out in 2023, but some provinces continue to provide support at the regional level, particularly through strategic initiatives and logistics infrastructure development. The size and terms of such subsidies may vary depending on the region and specific projects.
Container rail transportation in China occupies a strategically important place in the implementation of the Belt and Road Initiative and the formation of a modern national transportation system. Its development is the result of a targeted policy set up by the Chinese government, which consistently encourages the growth of rail transportation to relieve congestion on the road transport network, improve the speed and cost-effectiveness of logistics, and promote environmentally friendly solutions in the transportation industry. Container trains, particularly those traveling west to Europe, demonstrate a conservative sustainable advantage in delivery times compared to sea transport—on average, three to five times faster.
In the first half of 2025, rail freight traffic in China reached 1.98 billion metric tons, a 3% increase compared to the same period last year, while the average daily number of loaded railcars increased by 4% to 182,400 units. The development of China’s railway infrastructure has played a key role in shaping rail-water transportation patterns in several regions, particularly in the west and center of the country. This is reflected in the growth dynamics of multimodal container shipping routes: they reached 8.25 million TEU, representing an increase of 18.1% compared to the first half of 2024. Overall, between 2019 and the first half of 2025, multimodal rail-water transportation in China demonstrated consistently high growth rates — an average of 17.2%.
Since the launch of the first route from Chongqing to Duisburg, Germany, in 2011, the number of annual trips has grown from 17 to over 19,000 trains in 2024, while the total transportation value has increased from $8 billion in 2016 to over $58 billion. The range of cargo transported has expanded by over 50 thousand items across 53 categories, with a significant predominance of high-tech and engineering products.
Total China-Europe freight volume in 2024 amounted to 2.07 million TEUs, an increase of 9.2% compared to the previous year. Of these trains, 10,546 traveled west, and 8,846 traveled back to China.
Currently, 128 Chinese cities are connected by rail to 229 cities in 26 European countries and over 100 cities in 11 Asian countries.
