China has inaugurated the Pinglu Canal in the Guangxi Zhuang Autonomous Region, offering a more direct waterway from southwest China to the sea, aimed at boosting trade with Southeast Asia. This 134.2-kilometer canal links Hengzhou to the Beibu Gulf, forming a critical segment of the New International Land-Sea Trade Corridor designed to enhance connections between China’s inland regions and ASEAN markets.
The canal, constructed at a cost of approximately 72.7 billion yuan ($10.75 billion), is engineered to accommodate vessels up to 5,000 tonnes. It significantly shortens the traditional inland waterway route to the sea through Guangdong ports by over 560 kilometers. This reduction is expected to cut logistics costs by 18% to 30%, saving over 5 billion yuan in transportation expenses annually.
For businesses in southwest China, where transportation to coastal ports has traditionally been costly, the Pinglu Canal presents a transformative alternative. Commodities such as coal, grain, minerals, new-energy materials, and automobile parts can reach international markets more efficiently via this new route.
The project’s infrastructure includes three navigation hubs featuring twin-line ship locks to manage water level differences of 65 meters. Additionally, innovative water-recycling systems are designed to conserve more than 1 billion cubic meters of water annually, demonstrating a commitment to environmental sustainability.
China has also integrated ecological measures into the canal’s development, with over 98% of excavated earth and rock being reused. The canal is equipped with a fish passage and wildlife crossing, highlighting efforts to minimize ecological disruption.
Beyond enhancing trade routes, the canal is poised to strengthen economic ties between China and ASEAN, which is China’s largest trading partner. The bilateral trade surpassed $1 trillion in 2025, with the first seven months of 2026 alone seeing trade volumes of $744.41 billion. The canal is anticipated to not only facilitate the movement of goods but also attract investment and promote supply-chain integration along its route.