Trade barriers and opportunities for intermodal transport between Chongqing och Shanghai

Well-developed infrastructure alongside cheap labor cost has in recent decades propelled the Chinese economy to a point where undertaking western economic zones is a foreseeable possibility. Industrialization and urbanization of the Chinese east coast has resulted in a major economic unbalance between the east coast and the rest of the Chinese province. While the majority of the inland regions are living in poverty the salaries continue to rise in well developed areas. The Chinese central government has in recent years developed a political plan to include a larger part of the population in beneficial commerce through a transition of production to inland China. Through this case study we will discuss the cause and effect of current trade barriers, how they limit the integration process and how the future trade in Chongqing correlates to market trends. In this case study we have through in depth interviews and literature procured qualitative data in order to portrait and explains driving factors and trade barriers in connection to the transport network between Chongqing and Shanghai. Through empirical and economic studies we will explain the role Chongqing will have in future scenarios in correlation to the development of the Chinese trade market. Our result reflects the vast complexity of restructuring a current export depending economy in order to raise domestic consumption. The majority of transporting operators interviewed during this case study agrees that relocation of low cost production is a vital factor in rising domestic consumption and post 2008 statistics show an increasing focus on domestic trade. However, overcoming existing trade barriers are a slow process and cultural indifferences are holding the integration back. Our conclusions revolve around which role Chongqing will have in future transport and trade patterns. A smooth transition to a less export dependent economy will surely show a shift in import/export ratio and a stronger domestic market would be dependent on relatively well-developed region such as Chongqing to attain a position as a central distribution hub. However, there are several major trade barriers that have to be resolved in order to open the domestic transport market and attract producing companies