{"id":25609,"date":"2026-09-18T09:04:39","date_gmt":"2026-09-18T03:19:39","guid":{"rendered":"https:\/\/eng.dragonmedia.com.np\/?p=25609"},"modified":"2026-09-18T09:04:39","modified_gmt":"2026-09-18T03:19:39","slug":"china-opens-pinglu-canal-creating-new-trade-route-between-southwest-china-and-asean","status":"publish","type":"post","link":"https:\/\/eng.dragonmedia.com.np\/?p=25609","title":{"rendered":"China Opens Pinglu Canal, Creating New Trade Route Between Southwest China and ASEAN<\/strong>"},"content":{"rendered":"

Dragon Media News Desk<\/strong><\/p>\n

China has officially opened the Pinglu Canal, a major river-to-sea waterway that provides the country’s southwestern regions with a shorter route to the coast and international markets. The 134.2-kilometer canal cuts the inland waterway journey from southwest China to the sea by more than 560 kilometers and is expected to become an important new trade and supply-chain corridor between China and the Association of Southeast Asian Nations, or ASEAN.<\/p>\n

Built at a cost of 72.7 billion yuan, approximately $10.75 billion, the canal runs from Hengzhou in south China’s Guangxi Zhuang Autonomous Region to the Beibu Gulf, the nearest maritime outlet for much of southwest China. Located along the New International Land-Sea Trade Corridor, it is the first river-to-sea canal project planned and coordinated at the national level since the founding of the People’s Republic of China in 1949.
\n\"\"<\/p>\n

Designed to accommodate vessels of up to 5,000 tonnes, the canal provides a significantly shorter waterway than traditional routes through ports in Guangdong Province. It is expected to reduce overall logistics costs by between 18 and 30 percent and save more than 5 billion yuan in transportation expenses annually. Coal, ore, grain, new-energy materials and automobile components produced in southwest China will now have a more direct route to overseas markets.<\/p>\n

Construction took more than four years. Most of the canal was developed by widening, deepening and straightening existing waterways, while smaller sections were excavated through dry land and mountainous terrain. One of the project’s most significant engineering challenges was overcoming a 65-meter difference in water levels. Three navigation hubs equipped with twin-line ship locks were constructed to raise and lower vessels along the route.<\/p>\n

Engineers also developed water-recycling systems at the navigation hubs, enabling the canal to save more than 1 billion cubic meters of water annually. Environmental protection was incorporated into the project, with more than 98 percent of approximately 315 million cubic meters of earth and rock excavated during construction being reused. A fish passage extending more than 480 meters and a dedicated wildlife crossing for land animals, including leopard cats and squirrels, were also constructed.<\/p>\n

Lu Xinning, vice chairperson of the Guangxi regional government, said the canal establishes a new connection between China’s market of around 1.4 billion people and ASEAN’s nearly 700 million consumers. Its impact is expected to extend beyond cargo transportation by encouraging cross-border investment, supporting industrial development and strengthening regional supply-chain integration.<\/p>\n

The canal has opened in the first year of China’s 15th Five-Year Plan period from 2026 to 2030. It carries particular significance for southwest China, where inland regions have historically faced higher transportation costs and more difficult access to seaports than the prosperous eastern coastal provinces. Lower logistics costs could shift some freight from road and rail to waterways and redirect cargo flows from the Pearl River Estuary toward the Beibu Gulf.<\/p>\n

Over the longer term, improved access to the sea could also attract investment into China’s interior and encourage new industrial development along the canal. The project therefore represents not only a transportation infrastructure initiative but also part of a broader effort to improve regional economic connectivity and provide inland areas with more efficient access to international trade.<\/p>\n

The canal has opened as China-ASEAN economic ties continue to expand rapidly. Bilateral trade exceeded $1 trillion for the first time last year. During the first seven months of 2026, trade between China and ASEAN reached $744.41 billion, an increase of 24.7 percent year on year and equivalent to 21.8 percent of China’s total foreign trade during the period.<\/p>\n

ASEAN products can now move more efficiently into western China, while goods manufactured in China’s southwestern regions can reach ASEAN and other international markets through the Beibu Gulf. Regional transshipment centers such as Singapore could also benefit from the changing cargo network. Beyond reducing distance, the Pinglu Canal’s ability to lower transportation costs, shorten delivery times and reduce supply-chain uncertainty could make it an increasingly important trade artery linking the vast Chinese and ASEAN markets.<\/p>\n

\n\t\t\t
\n\t\t\t <\/div><\/div>\n\t\t