In a strategic move to enhance trade connections with Southeast Asia, China has unveiled the Pinglu Canal in the Guangxi Zhuang Autonomous Region. This ambitious project aims to streamline the transportation route from southwest China to maritime destinations, offering a more direct link to the sea.
The Pinglu Canal spans 134.2 kilometers and connects Hengzhou to the Beibu Gulf. As part of the New International Land-Sea Trade Corridor, it is set to play a crucial role in linking China’s inland regions to ASEAN markets and other international trade partners. The construction of this canal required an investment of approximately 72.7 billion yuan ($10.75 billion).
Capable of accommodating vessels up to 5,000 tonnes, the canal reduces the traditional inland waterway route to the sea by over 560 kilometers, bypassing the need to navigate through Guangdong ports. This reduction is expected to lead to significant cost savings, cutting logistics expenses by 18% to 30% and saving more than 5 billion yuan in transportation costs annually.
The canal is particularly beneficial for industries in southwest China, which have historically faced higher costs when transporting goods to coastal ports. Commodities such as coal, grain, minerals, new-energy materials, and automobile parts will now have a more efficient route to reach international markets.
In addition to economic benefits, the canal incorporates several environmental measures. Over 98% of the excavated earth and rock was repurposed, and features like fish passages and wildlife crossings were included to minimize ecological impact. Moreover, the canal’s water-recycling systems are projected to conserve over 1 billion cubic meters of water every year.
This development is expected to bolster economic ties between China and ASEAN, which is already China’s largest trading partner. Trade between China and ASEAN surpassed $1 trillion in 2025, and in the first seven months of 2026, it reached $744.41 billion. The new canal route is likely to further encourage investment and enhance supply-chain integration, supporting the movement of goods between southwest China and Southeast Asian markets.