At the western end of the Lianhuo (连霍) Expressway in Xinjiang lies the bustling international border city of Khorgos (霍尔果斯). Known for its strategic location at the China-Kazakhstan border, Khorgos has become a vital hub for cross-border trade. The Yiwu International Trade Center, located within the China-Kazakhstan Khorgos International Border Cooperation Center, has become a key player in facilitating trade between China and Central Asia. With live streaming gaining immense popularity in domestic e-commerce, it was only a matter of time before it entered the world of cross-border trade.
The Yiwu International Trade Center manager, Jin Xingzhong (金兴忠), explained how live streaming has begun to transform the cross-border e-commerce landscape. However, unlike the well-established live-streaming infrastructure in domestic Chinese e-commerce, cross-border live-streaming faces unique challenges. While Yiwu’s strength lies in its manufacturing and distribution networks, ensuring reliable network connectivity for international live-streaming events is a different ballgame. This was one of the first hurdles Khorgos had to overcome to make cross-border live streaming feasible.
To tackle this issue, Khorgos Telecom, a branch of China Telecom, took on the task of developing a specialized solution. After extensive testing and research, Khorgos Telecom launched the region’s first SD-WAN cross-border e-commerce live streaming line in November 2023. This custom-built system is designed to address the specific needs of cross-border e-commerce, allowing merchants to livestream autonomously while maintaining centralized control over the marketplace.
This new infrastructure also resolves several critical issues, such as mobile environment compatibility, network stability, and the prevention of IP address contamination, all essential for a smooth live-streaming experience. With these advancements, the Khorgos free trade zone has rapidly increased cross-border live-streaming activity. More than 40 merchants are now actively engaged in live streaming, showcasing their products to a growing Central Asian audience.
As Jin explains, the live-streaming audience has grown substantially. While initially only a few viewers, the real-time online audience now often exceeds thousands, with over 100,000 visitors passing through the marketplace daily. The potential impact of this live-streaming phenomenon is enormous, especially as more than 100 Central Asian influencers have signed on to participate, with the combined audience expected to reach 200 million people.
A New Wave of Products and Markets
What’s most striking about the products being live-streamed is their diversity. While small appliances and electronics remain highly popular with Kazakh consumers, live streams also feature more oversized items like automobiles. The ability to showcase various products, from household goods to high-value items like cars, demonstrates how dynamic and versatile the cross-border e-commerce market has become in Khorgos.
Jin, who hails from Yiwu, has been instrumental in shaping this growing marketplace. He views Khorgos as a “mini Yiwu,” where the same entrepreneurial spirit and adaptability that made Yiwu a global trading hub are being applied. “When we first started live streaming, only about 5% of Central Asian consumers knew about us,” Jin recalls. “But now, through our continuous live streaming efforts, we’ve attracted a growing number of Central Asian consumers. They’re not only interested in small home appliances and consumer goods but also in larger items like automobiles. Our prices are very attractive to them because we’re offering source prices.”
The appeal of Khorgos lies not just in the variety of products but in its ability to offer competitive prices. By cutting out intermediaries and dealing directly with manufacturers, Khorgos has positioned itself as a cost-effective solution for Central Asian consumers looking for high-quality goods.
Building a Two-Way Trade Route
The benefits of cross-border e-commerce in Khorgos are not one-sided. While Chinese-made goods are flowing into Central Asia, Khorgos is also becoming a gateway for African products to enter China. The Yiwu International Trade Center has opened its doors to African products, showcasing a range of items from beautifully crafted cloth fans from Ghana to raffia accessories from Madagascar and sisal bags from Kenya. Walking into these stores feels like stepping into a mini African cultural gallery, offering consumers the chance to purchase artisanal goods and experience a taste of African culture.
The African Product Exhibition Center in Yiwu now features over 3,400 products from 14 African countries. This influx of African products into the Chinese market highlights how Khorgos is an export hub and a thriving centre for two-way trade. Through initiatives like this, Khorgos is helping to build cultural and economic bridges between continents, demonstrating the power of trade to unite distant markets.
Jin believes that Khorgos’s role in promoting international trade will only grow. “Our goal is to promote high-quality Chinese products to Central Asia and, at the same time, attract more merchants from regions like Zhejiang, Guangdong, and Fujian to bring their products to Khorgos. We’re building our influence step by step, ensuring that Chinese brands continue to make their mark on the global stage.”
The success of Khorgos as a cross-border e-commerce hub can be attributed to a combination of strategic location, advanced infrastructure, and the ability to adapt to emerging market trends. SD-WAN technology has enabled Khorgos to overcome the challenges of cross-border live streaming, allowing merchants to engage with consumers in real-time across vast distances. This seamless integration of technology and trade has opened up new opportunities for merchants and consumers.
The future of Khorgos as a leader in cross-border e-commerce is bright. With the support of digital platforms, more Central Asian influencers are signing on to promote Chinese products, further expanding the reach of Khorgos’s trade network. As more Chinese brands take advantage of this growing market, Khorgos is poised to become a key player in global commerce.
Moreover, the influx of African products into Khorgos and the increasing demand for Chinese goods in Central Asia highlight Khorgos's importance as a platform for two-way trade. This reciprocal exchange of goods and culture benefits businesses and consumers, who now have access to a broader range of products than ever before.
Khorgos at the Center of Global Commerce
Once a quiet border town, Khorgos has transformed into a bustling hub of cross-border e-commerce, connecting China with Central Asia and beyond. Through innovative solutions like SD-WAN technology and a commitment to building a robust live-streaming infrastructure, Khorgos has positioned itself as a vital player in the global trade network. The trade centre’s ability to offer competitive pricing, a wide variety of products, and seamless connectivity has made it a go-to destination for Central Asian consumers and a critical gateway for Chinese goods entering international markets.
As more merchants and influencers join the cross-border e-commerce revolution, Khorgos is set to expand its influence even further, playing a crucial role in shaping the future of global trade. With its unique position at the crossroads of Asia, Africa, and Europe, Khorgos is well on its way to becoming one of the most important trade hubs in the world.
