China has inaugurated the Pinglu Canal in the Guangxi Zhuang Autonomous Region, a strategic new waterway designed to bolster trade routes between southwest China and Southeast Asia. The 134.2-kilometer canal, which cost approximately 72.7 billion yuan ($10.75 billion), connects Hengzhou to the Beibu Gulf and is an integral part of the New International Land-Sea Trade Corridor.
This ambitious infrastructure project significantly shortens the traditional inland waterway route to the sea, slicing off more than 560 kilometers usually traversed through Guangdong ports. The canal is engineered to accommodate vessels weighing up to 5,000 tonnes, with Chinese authorities projecting a reduction in logistics costs by 18% to 30%, translating into annual transportation savings exceeding 5 billion yuan.
Particularly beneficial for southwest China, the canal provides a more efficient route for transporting goods such as coal, grain, minerals, new-energy materials, and automobile parts to international markets. The project includes three navigation hubs equipped with twin-line ship locks to manage a 65-meter difference in water levels, alongside water-recycling systems expected to save over 1 billion cubic meters of water each year.
In terms of environmental considerations, more than 98% of the excavated earth and rock has been repurposed, and the canal incorporates a fish passage and wildlife crossings to mitigate its ecological impact. These measures reflect a commitment to sustainable development in line with the canal’s economic objectives.
The opening of the Pinglu Canal is anticipated to strengthen economic ties between China and the Association of Southeast Asian Nations (ASEAN), China’s largest trading partner. In 2025, trade between China and ASEAN surpassed $1 trillion, and in the first seven months of 2026 alone, it reached $744.41 billion. This new waterway is expected to further facilitate trade and investment, enhancing supply-chain integration and improving goods movement between southwest China and Southeast Asian markets.