International Transport Corridors and Global Supply Chain Connectivity: Evidence from the China Railway Express

The China Railway Express serves as a flagship project of the Belt and Road Initiative. This study investigates the impact of the China Railway Express on the overseas supply chains of Chinese firms. Using a multi-period difference-in-differences design, we find that the service launch boosts Chinese suppliers’ overseas customer acquisition in destination countries. This positive effect operates through lower policy-related transaction frictions and broader destination-market access. Positive spillovers from hubs are observed for surrounding firms, with the marginal impact diminishing as the distance from the hub increases. Moreover, the effect is stronger for small and inland firms, and in destination markets with higher income levels, larger economic size, and greater trade openness. This study enriches the micro-level literature on cross-border transport infrastructure and international supply chains, offering empirical evidence for optimizing the spatial layout of Belt and Road Initiative corridors and strengthening the resilience of firms’ transnational operations.