China opens major canal linking southwest to sea, cutting 560-km trade detour
China on Wednesday opened the Pinglu Canal, a landmark waterway designed to give the country's vast southwestern hinterland a direct route to the sea and strengthen trade with Southeast Asia. The 134.2-km canal runs from the Nanning area of Guangxi Zhuang Autonomous Region south to the Beibu Gulf (Gulf of Tonkin), creating a river-to-sea connection that bypasses the traditional route east through…
On September 16, 2026, China officially opened the Pinglu Canal, a significant waterway that connects the country's inland southwest region to the Beibu Gulf via the sea. This 134.2-kilometer canal bypasses the traditional trade route through the Xijiang River, cutting a 560-kilometer detour and streamlining trade between southwestern China and Southeast Asia.
The canal's construction, which cost approximately $10.7 billion, was completed in four years following its launch in August 2022. With a capacity to accommodate vessels up to 5,000 tonnes, the canal is designed to enhance trade connections and reduce logistics costs by 18% to 30%. Already operational are about 30 cargo vessels, as well as freight and passenger routes connecting Nanning with Vietnam, Hainan, and other destinations.
The canal's development represents China's strategic effort to integrate its western regions with international markets and strengthen its economic ties with ASEAN, a major trading partner.
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