China opens the Pinglu Canal in Guangxi, creating a shorter river-to-sea route for southwest China to reach global markets and ASEAN, while reducing logistics distances and costs and strengthening regional trade connectivity.
China opens the Pinglu Canal in Guangxi Zhuang Autonomous Region, establishing a major river-to-sea connection between southwest China and overseas markets, particularly the Association of Southeast Asian Nations (ASEAN). The 134.2-kilometre waterway links Nanning with the Beibu Gulf and becomes operational as China begins its 15th Five-Year Plan period.
Built at a cost of 72.7 billion yuan, or around $10.75 billion, the canal provides a shorter maritime route for goods from China’s southwestern provinces. It forms part of the New International Land-Sea Trade Corridor, which connects inland Chinese regions with ASEAN and other international markets.
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The waterway accommodates vessels weighing up to 5,000 tonnes and cuts more than 560 kilometres from the inland journey to the sea compared with traditional routes through ports in Guangdong Province. Authorities expect the canal to reduce overall logistics costs by between 18 and 30 percent and save more than 5 billion yuan annually in transportation expenses.
The project is expected to support the movement of coal, ore, grain, new-energy materials and automotive components from southwest China to international markets. Beyond freight transportation, officials anticipate that improved connectivity will encourage cross-border investment and strengthen regional supply chain integration.
The canal also has strategic importance for Guangxi, which serves as a key gateway between China and Southeast Asia. The route connects China’s large domestic market with ASEAN’s consumer base and provides additional infrastructure for expanding commercial links with the region.
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China’s trade with ASEAN exceeds $1 trillion for the first time in 2025. During the first seven months of 2026, bilateral trade reaches $744.41 billion, marking a 24.7 percent year-on-year increase and accounting for 21.8 percent of China’s total foreign trade during the period.
The canal takes more than four years to construct and incorporates three navigation hubs with ship locks to manage a 65-metre difference in water levels. Environmental measures include extensive reuse of excavated material, a fish passage and wildlife crossings.