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Erdogan and Xi Chart Railway, Trade, and 5G Course for Asia - Europe Connectivity

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5G AMR demo shows Turkey's push toward Industry 4.0 transformation. Credit: Pexel

Turkish President Recep Tayyip Erdogan met with Chinese President Xi Jinping at the Shanghai Cooperation Organization (SCO) summit in China. resulting in a multi-faceted agreement aimed at deepening cooperation across infrastructure, trade, and technology.

A Key outcomes of the meeting was the alignment of China's Belt and Road Initiative with Turkey's Middle Corridor project. The plan features a southern branch of the China–Europe Railway Express, expanding freight routes via the South Caucasus. In addition, the two countries agreed to stimulate cooperation in 5G, renewable energy, and biomedicine. Ankara also reaffirmed its commitment to the one-China policy.

Aligned with the summit, Turkey announced it will conduct a long-awaited 5G spectrum auction on October 16, 2025, with commercial services expected to launch to begin April 1, 2026.

In the 700 MHz and 3.5 GHz bands, 400 MHz will be distributed among 11 frequency packages during the auction. Operators will pay in three installments, with a minimum total value of $2.125 billion.

Eligible bidders include Vodafone Turkey, Turk Telekom, and Turkcell. Starting in 2029, operators will be required to remit 5% of their annual revenues to the Information and Communication Technologies Authority (BTK) 5% of their yearly revenues as part of the post-license consolidation process. Licenses will remain valid until the end of 2042.

To strengthen its domestic technology sector and reduce reliance on foreign suppliers, the Turkish government mandates the use of locally produced infrastructure in the 5G rollout. Officials estimate the new network will deliver speeds 10 to 100 times faster than 4.5G.

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Turkey's move positions it as a regional telecom infrastructure leader. The October auction aligns with Erdogan–Xi pledges to integrate 5G into transcontinental logistics and trade infrastructure.

Turkey is testing advanced 5G industrial use cases in addition to telecom rollouts. Together with Argela and Etiya, Turk Telekom is creating local 5G network-slicing technologies to facilitate charging frameworks and industry-specific applications. The company used 5G-Advanced ISAC technology to test real-time ship detection in a first for Europe, showcasing its port automation capabilities.

Separately, Turkcell and Ericsson demonstrated how to use 5G standalone and network slicing to enable AI-powered robotics in factories, completing the first industrial autonomous mobile robot (AMR) demonstration in Turkey. These trials underscore how Turkey is positioning 5G not only as a consumer technology, but as a keystone of Industry 4.0 transformation.

Additionally, China-Turkey's larger transportation and digital infrastructure strategy aligns with the 5G push. As a digital layer on top of physical connectivity, 5G is enhanced by the rail and Belt and Road integration agreements at the SCO summit.

5G is a key technology for intelligent logistics, freight tracking, and trade automation as Turkey expands its Middle Corridor and connects BRI routes. China-Turkey trade reached US$48.3 billion in 2024, according to official data, and digital infrastructure is a vital value-added along that corridor.

As projects come to fruition, it will become clear whether the summit produces more than diplomatic headlines. In addition to altering the speed at which data travels, Turkey's 2026 5G rollout could also alter the flow of capital, influence, and goods throughout Eurasia if it coincides with new rail links to Europe. The Erdogan-Xi meeting is more than just a handshake because of that possibility.

If Turkey delivers on its 5G timelines and deepens its role in Belt and Road logistics, the country could emerge as a rare case study. A mid-sized economy using digital infrastructure to punch above its weight in global trade.

5G AMR demo shows Turkey's push toward Industry 4.0 transformation. Credit: Pexel

Article edited by Joseph Tsai