Blockchain gives a big boost to China-Europe rail trade

China Daily Online reports that the China-Europe rail trade route has undergone a significant speed boost thanks to the application of blockchain technology.

Industrial and Commercial Bank of China has installed the blockchain-powered China-Europe TradeConnect 2.0 platform at the Chengdu International Railway Port in Sichuan Province.

In addition to reducing time-consuming logistical document checks, the new system will reportedly allow foreign trade companies to raise funds directly from banks to speed up cash flow.

The industry that ships goods from China by rail used to take more than a month to reach European destinations. Documents and waybills had to be checked at every border crossing, with logistics made more difficult by translation difficulties and bureaucratic entanglements.

In the first three years and three months of its existence, the China-Europe freight service successfully carried out 200 trips. Since the introduction of blockchain technology, the same number of trips has been carried out in just two months.

An ICBC staff member told reporters that the benefits of the blockchain-enabled system make it a reliable platform for hosting and tracking trade data.

“We use the advantages of blockchain, such as its tamper-proof nature and timestamps, to form reliable transaction data. This can greatly improve the financing capabilities of small and medium-sized foreign trade enterprises.”

Chen Ran of Chengdu International Inland Port Operations said that the way global trade is conducted has changed fundamentally over the past decade. He added: "Compared with 2007, we are now supported by blockchain, the Internet of Things and big data to help track logistics and significantly reduce the risk of cargo damage. Therefore, there is better protection for both banks and customers."