China has inaugurated the Pinglu Canal in the Guangxi Zhuang Autonomous Region, a significant infrastructure project designed to enhance trade routes between southwest China and Southeast Asia. The canal, which spans 134.2 kilometers and cost approximately 72.7 billion yuan ($10.75 billion) to construct, is part of the New International Land-Sea Trade Corridor. By connecting Hengzhou with the Beibu Gulf, this new waterway offers a more direct route to the sea, reducing the distance by over 560 kilometers compared to traditional inland routes through Guangdong ports.
The Pinglu Canal is engineered to handle vessels weighing up to 5,000 tonnes, promising to cut logistics costs by 18% to 30% and saving more than 5 billion yuan in transportation expenditures annually. This development is particularly beneficial for businesses in southwest China, which have historically faced higher costs when exporting goods to coastal ports. Commodities such as coal, grain, minerals, new-energy materials, and automobile parts can now reach international markets more efficiently.
The canal features advanced navigational infrastructure, including three navigation hubs with twin-line ship locks that manage a 65-meter water level difference. Additionally, the project incorporates water-recycling systems expected to conserve over 1 billion cubic meters of water annually. Environmental considerations were also prioritized, with over 98% of the excavated earth and rock being repurposed, and the inclusion of a fish passage and a wildlife crossing.
This new maritime route is poised to bolster economic ties between China and the Association of Southeast Asian Nations (ASEAN), which is China’s largest trading partner. In 2025, trade between China and ASEAN surpassed $1 trillion, and their trade volume reached $744.41 billion in the first seven months of 2026. The canal is anticipated to stimulate further investment and supply-chain integration along its course while facilitating smoother movements of goods between China’s inland regions and Southeast Asian markets.