In a strategic move to bolster trade links with Southeast Asia, China has inaugurated the Pinglu Canal in the Guangxi Zhuang Autonomous Region. This new waterway significantly shortens the route between southwest China and the sea, serving as a key component of the New International Land-Sea Trade Corridor, which connects China’s inland areas with ASEAN markets and beyond.
The Pinglu Canal, a 134.2-kilometre long channel, links Hengzhou with the Beibu Gulf and was constructed at a cost of approximately 72.7 billion yuan ($10.75 billion). Designed to accommodate vessels up to 5,000 tonnes, it reduces the traditional inland waterway distance by more than 560 kilometres, previously routed through Guangdong ports. This reduction is expected to decrease logistics costs by 18% to 30%, saving over 5 billion yuan annually in transportation expenses.
For businesses in southwest China, the canal represents a significant development, offering a more cost-effective and direct route to coastal ports. Key exports such as coal, grain, minerals, new-energy materials, and automobile parts can now be transported more efficiently to overseas markets. The project also incorporates advanced infrastructure, including three navigation hubs with twin-line ship locks to manage a 65-metre water level difference, and water-recycling systems designed to conserve more than 1 billion cubic metres of water each year.
Environmental considerations were integral to the canal’s construction, with more than 98% of excavated materials being reused. The canal also includes ecological features like a fish passage and a wildlife crossing to minimize its environmental impact.
The opening of the Pinglu Canal is expected to further strengthen economic ties between China and ASEAN, its largest trading partner. Trade between the two entities surpassed $1 trillion in 2025, and reached $744.41 billion in the first seven months of 2026. The new waterway is poised to encourage investment and enhance supply-chain integration along its route, improving the movement of goods between southwest China and Southeast Asian markets.