China and Turkey－two firm supporters of multilateralism－are expected to create more jobs, two-way trade and regional connectivity opportunities during the next stage of their partnership, enriched by the growth of the Belt and Road Initiative and Turkey's Middle Corridor Initiative, according to officials and business leaders from both sides.

 

This year marks the 50th anniversary of the establishment of diplomatic relations between the two nations, and deepening and diversifying bilateral business cooperation and trade channels has become a natural option for China and Turkey to boost, restore and advance their growing strength.

 

Apart from enhancing cooperation in combating COVID-19, adding new highlights in areas such as infrastructure project development and in the service sector, Turkey's strategic position at the intersection of Europe, Asia and the Middle East ensures its role as a regional transportation hub that has gained notable momentum in recent years, said Zhang Yongjun, deputy chief economist at the Beijing-based China Center for International Economic Exchanges.

 

Despite both the Chinese and Turkish economies being affected by the COVID-19 pandemic since last year, the degree of interdependence between the two nations remains stable in bilateral cross-industry trade, he said.

 

Benefiting from their complementary goods trade structure, the easing of the pandemic and vaccinations, China-Turkey trade soared by 50.7 percent on a yearly basis to $16.07 billion in the first half of 2021, data from the General Administration of Customs showed.

 

China ships mainly medical products, construction machinery, manufacturing equipment, steel, electronics and household appliances to Turkey. In addition to minerals, precious and base metals, chemical and agricultural products, Turkey's exports to China include plastics, rubber, furniture, toys, transportation equipment, and materials for textile and garment goods, customs data showed.

 

Guo Tingting, director-general of the comprehensive affairs department of the Ministry of Commerce, said the China-Europe freight train service is proving even more vital during the pandemic with the freight trains playing a crucial role in stabilizing global supply and industrial chains, due to limited air and maritime transport options.

 

The China-Europe Railway Express has benefited from Turkey's ongoing construction and improvement of its railways, facilities and services, said Abdulkadir Emin Onen, Turkey's ambassador to China.

 

The initiation of direct block train services between Turkey and China in December 2020 is the most recent and substantial example of such development. The train follows the Trans-Caspian East-West-Middle Corridor via the Baku-Tbilisi-Kars railway. Its route covers almost 8,700 kilometers, passing two continents, two seas, five countries and forwarding its freight from Istanbul to Xi'an in less than two weeks.

 

A number of trains have followed the first one in recent months and there are plans to make a regular and more frequent schedule for freight trains between Turkey and China, according to Xi'an International Inland Port Investment and Development Group, one of the organizers for the long-distance train service.

 

Onen said massive infrastructure projects in Turkey, including high-speed railways, have greatly contributed to achieving Eurasian connectivity. For instance, the country is building the Edirne-Kars High Speed Network, which will enable faster and cheaper transport between China, Central Asia and Europe.

 

Another area that offers great opportunities for bilateral economic ties is the harmonization of Turkey's Middle Corridor Initiative and the BRI, he said.

 

"Both countries share a similar outlook of connectivity projects that aim at the economic and logistic integration of the vast Eurasian landmass," he said. "We sincerely believe that this component of our relations has great potential to contribute to stability and prosperity in our respective regions."

 

The Trans-Caspian East-West-Middle Corridor Initiative, known simply as the Middle Corridor Initiative, is the revival of the ancient Silk Road, according to information released by the Investment Office of the Presidency of the Republic of Turkey－the official organization for promoting Turkey's investment opportunities to the global business community and for providing assistance to global investors.

 

The corridor starts in Turkey and passes through the Caucasus nations of Georgia and Azerbaijan before crossing the Caspian Sea, traversing Central Asia and terminating in China. Generating a natural synergy with the BRI, it aims to further reinforce the connectivity between the West and the East, said Wei Xiaoquan, a researcher specializing in regional economic development at the University of International Business and Economics in Beijing.

 

"From this perspective, pioneering a new trading route through the middle of Eurasia, and integrating the Middle Corridor Initiative with the BRI are seen as a new growth momentum for Turkey," he said.

 

In comparison with the Trans-Siberian Railway, also known as the Northern Corridor, the Middle Corridor Initiative is a more feasible trade route between Europe and Asia since it is about 2,000 km shorter, said Feng Hao, a researcher at the National Development and Reform Commission's Institute of Comprehensive Transportation in Beijing.

 

"It has more favorable climate conditions, and shortens the travel time by one-third compared to the sea route," he added.

 

Aside from further diversifying trade ties and consolidating regional connectivity, WeChat Pay, a Chinese online payment app, is gaining popularity in Turkey as it offers contact-free service to local residents amid the COVID-19 pandemic.

 

People learned the importance of social distancing and going as contactless as possible during the pandemic, so as to protect themselves from the virus, said the Chinese company.

 

WeChat Pay, which allows consumers to complete their transactions online, started to be used at Istanbul Airport a year ago within the framework of an agreement with the Turkey branch of Industrial and Commercial Bank of China.

 

The project aims to provide convenience to passengers by diversifying payment systems and enabling all WeChat Pay users visiting Turkey, especially Chinese tourists, to use the method they are familiar with, said the press office of Istanbul Airport.

 

ICBC Turkey said on its website that the WeChat Pay project has been developed into an alternative to the present payment system, offering a fast and easy payment choice for users. It added that the application will spread all over Turkey in the future.

 

Ren Xingzhou, a research fellow at the Institute of Market Economy of the Development Research Center of the State Council, said the convenient location, fast growth pace of industrialization, a skilled workforce, and diversified commercial ties with global companies will push Turkey to become a gateway and trade hub for the fast development of the BRI in the coming years.

 

She said such a trend will be boosted by companies from both China and Turkey that give full play to their advantages in production capacity and technological collaboration, as well as increase the commercial potential in services and new energy industries.

 

Source: CHINA DAILY