The ‘Savior’ that Helped Thai Durian Win Big in China: Speedy and Affordable Transport, Prices Slashed by Half

The China-Laos Railway, a significant infrastructure project under the Belt and Road Initiative (BRI), is substantially enhancing trade cooperation between China and Southeast Asia, particularly in the agricultural sector.

Among the myriad of Southeast Asian agricultural products, the export of Thai durians to China has witnessed steady growth thanks to the China-Laos Railway. So far this year, the volume of Thai durians and other tropical fruits imported by China through the Mohan border gate in Yunnan Province, southwest China, has increased by 25% compared to the same period last year, according to a report published on the official WeChat account of the China State Railway Group Co., Ltd.

Experts attribute the significant increase in agricultural products, including Thai durians, entering the Chinese market to the enhanced transport capacity of the China-Laos Railway and improved clearance efficiency at the border. Since the launch of express delivery services in January 2022, the cost of transporting Southeast Asian fruits has decreased by 60% compared to traditional road transport, while the average retail price in the domestic market has dropped by 30%.

“The China-Laos Railway and other regional transportation projects are facilitating smoother trade flows, reducing transportation costs, and enhancing market accessibility,” said Xu Liping, director of the Center for Southeast Asian Studies at the Chinese Academy of Social Sciences, in an interview with the Global Times.

According to Xu, these improvements are expected to benefit Thai exporters by offering more efficient logistics solutions and reducing the time required to bring perishable goods such as fruits and vegetables to market.

The reduced logistics costs also benefit Chinese consumers. “A month ago, a standard box (16 kg) of durian varieties like Golden Pillow ranged from 1,100 yuan ($153) to 1,200 yuan, but now it costs only 730-780 yuan. The price has dropped significantly,” said Wang, a fruit vendor at the Xinfadi wholesale market, one of Beijing’s largest agricultural product markets.

High-quality Thai agricultural products, especially durians, mangosteens, and longans, are highly sought-after in China, while Thai rice also has a strong presence.

As China is Thailand’s largest trading partner and one of its most important sources of investment, the vast Chinese market absorbs a significant volume of Thai durians and other agricultural products. According to data released by the General Administration of Customs of China in January, bilateral trade reached $133.98 billion in 2024, up 6.1% year-on-year.

According to the Bangkok Post, Thailand is ramping up efforts to boost agricultural exports to China, with cassava and rice identified as key priorities, said Thai Commerce Minister Pichai Naripthaphan.

According to Xinhua News Agency, the China-Thailand high-speed railway, another key infrastructure project under the BRI, is expected to be completed by 2030, offering one-stop services for cargo. Xu also highlighted broader regional cooperation through the China-ASEAN Free Trade Agreement and the Regional Comprehensive Economic Partnership, describing them as gateways for Southeast Asian businesses to access the Chinese market more efficiently while promoting technology transfer and cross-border investment.