Border town offers a gateway for commerce

Benefiting from the Belt and Road Initiative and the China-Myanmar Economic Corridor, Jiegao, a small border town in southwestern China's Yunnan province, is poised to rise not only as a vital gateway between the two countries, but also an important location for the greater Southeast Asia region.

With an area of just 2 square kilometers, Jiegao, which means "old city" in the language of the Dai ethnic group, is adjacent to Muse in Myanmar. Separated by the Ruili River from the major part of Ruili city, the peninsula-like zone makes it possible for it to enjoy special policies, and become a growth engine for the local economy.

In 2000, it became China's first Special Export Processing Zone. Also known as a policy of "within the border but beyond the customs", it allows all goods in the processing zone, namely Jiegao, to be eligible for duty free trade, among other export and import preferential conditions.

In 2018, the customs in Jiegao saw upward of 17 million entries and exits made by visitors and residents living along the border. More than 90 percent of the visits were by foreigners, making it one of the busiest land ports in China dealing with foreign entries, according to the local customs.

"The unique geographical advantage of Jiegao, and more broadly Ruili, has made us an important transportation hub," said Xie Dapeng, mayor of Ruili.

"We are confident that with more supportive policies being approved by the central government, the potential of a hub would be fully tapped in the years to come," said Xie, as the city launched its first international duty-free shopping festival during the Water Splash Festival, which took place on April 13 this year, the most celebrated traditional festival for the Dai ethnic group.

Xie noted that infrastructure construction has played a significant role in boosting trade between the two countries in recent years, and trade with Myanmar soared by over 60 percent in 2018.

In line with the agreements reached by the two countries, construction of international railways, highways and waterways is in full swing.

Once completed, Ruili, the nearest Chinese city to the Indian Ocean, is not only going to signify the start of a new route in Southeast Asia that will bring enormous economic opportunities for nations along the route, but also diversify China's means of transportation.

During the provincial annual two sessions in January, Wei Gang, head of Dehong Dai and Jingpo autonomous prefecture, in which Ruili is located, vowed to make the city's port the largest among all land ports in China, with an annual cargo handling capacity of 17 to 25 million metric tons.

While jade has been one of the pillars of trade between the two nations, the local government of Ruili is planning to expand industries such as cross-border e-commerce and logistics by taking advantage of its location.

Yan Deyong, vice-mayor of Ruili in charge of agriculture, said that China is likely to see a groundbreaking shipment of live cattle imported from Myanmar through the port at the city this year, as soon as a general framework is approved by the central government.

It is expected that the beef processing zone, co-developed by a meat company in Shanghai and the government of Ruili, will have the capacity to slaughter and process 500,000 cattle annually.

"It's different and of greater significance for us in that the industry chain of beef processing can be extended," said Yan, compared with directly importing beef.