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Henan opening up via multimodal logistics

MNCs are adjusting strategies to align with China's evolving growth model and inland opportunities

By ZHONG NAN in Beijing and QI XIN in Zhengzhou | China Daily | Updated: 2026-03-31 09:47
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Workers load containers onto a cargo train bound for Laos at Putian railway station in Zhengzhou in early February. CHINA DAILY

Echoing that view, Tian Haitao, director of the Zhengzhou Airport Economy Zone's administrative committee, said once just an inland city, Zhengzhou is now emerging as a key gateway for undertaking the transfer of global high-tech industries and advancing the development of modern logistics.

For instance, the zone has become one of the world's largest smartphone manufacturing bases, with annual output exceeding 86 million units and attracting more than 200 supporting enterprises.

In the new energy vehicle sector, Chinese automaker BYD's Zhengzhou production base produced more than 1 million vehicles between 2023 and 2025. The project has attracted more than 100 auto parts manufacturers from both China and abroad, ranging from engine modules to small metal stamping components, to set up operations in the zone.

Today, the local sourcing rate for BYD within the province has exceeded 50 percent, effectively driving the coordinated development of related industries across Henan, according to the zone's administrative committee.

"The EVs can be shipped from Zhengzhou via China-Europe freight train services, reaching destinations across Europe in about 15 days. The inland hub is fast becoming a key gateway for Henan-made vehicles to enter foreign markets," Tian added.

Highlighting that China-Europe freight train services are reshaping the geography of trade by turning inland regions into outward-facing gateways, Yang Jie, deputy head of Zhengzhou Customs, said they provide landlocked companies with reliable access to global markets while supporting an industrial network across Eurasia spanning advanced manufacturing, modern agriculture and high-end equipment.

"Regional logistics hubs are no longer just transit points for goods. They are becoming strategic nodes in a globally integrated system that combines intelligent supply chains, greener transport solutions and digital innovation," said Chen Jianwei, a researcher at the University of International Business and Economics in Beijing.

Alongside air and rail cargo services, international road transport operations have notably expanded in both scale and quality in Henan, with 22 routes linking Zhengzhou to nine countries, including Russia and Uzbekistan, in 2025, said Henan's provincial government.

International road transport is a global customs transit system that China joined in 2016, helping to save time and cut costs for cross-border transport.

Wu Dongming, CEO for China at DHL Express, said the German courier services provider has in recent years established service centers in multiple inland provinces, including Henan and Jiangxi, to support local import and export activities.

As consumption upgrades accelerate in China's lower-tier cities and county-level economies, a growing number of consumers in smaller cities now have access to international goods and services of the same quality as those available in major metropolitan areas, said Wu.

"At the same time, manufacturers in these smaller cities are increasingly able to participate directly in global trade," he added.

These shifts are also reflected in foreign investment patterns, as multinational companies adjust strategies to align with China's evolving growth model and expanding inland opportunities.

China's green transition, innovation capabilities and policy continuity are creating fresh opportunities during the 15th Five-Year Plan (2026-30), said Lorenzo Riccardi, chairman of the Italian Chamber of Commerce in China, who added that foreign investment is moving beyond coastal regions and becoming more deeply integrated into the country's innovation-driven supply chains.

Reflecting these trends, Henan's total foreign trade reached 935.67 billion yuan ($135.47 billion) in 2025, up 14.1 percent year-on-year, said Zhengzhou Customs.

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