China opens Pinglu Canal to cut 560km off trade route to Asean

On September 24, China inaugurated the Pinglu Canal, a 134.2-kilometer waterway that bypasses a 560-kilometer stretch between landlocked southwest China and coastal ports, particularly those in the Association of South-east Asian Nations (Asean). Constructed at a cost of 72.7 billion yuan, the canal runs from Hengzhou, Guangxi Zhuang Autonomous Region, to the Beibu Gulf.

The canal is part of the New International Land-Sea Trade Corridor, a strategic trade route linking China's inland regions with Asean and global markets. Designed for vessels up to 5,000 tonnes, the canal drastically reduces transit time and costs, shortening inland waterway journeys by more than 560 kilometers and cutting logistics expenses by 18 to 30 percent annually.

Lu Xinning, vice chairperson of Guangxi, emphasized the canal creates a crucial link between China's 1.4 billion people and Asean's nearly 700 million consumers, potentially sparking cross-border investment and supply-chain integration. The canal's construction involved extensive modifications to existing waterways and the excavation of a small section through mountainous terrain, overcoming a 65-meter water level difference using navigation hubs with twin-line ship locks and water-recycling systems.

Environmental protection was prioritized, with over 98 percent of excavated materials being reused, and a fish passage and wildlife crossing for animals such as leopard cats and squirrels were included. As China and Asean deepen economic ties, the Pinglu Canal offers a new corridor for goods to flow between the two markets, potentially reshaping trade flows and boosting regional development.