China has opened the Pinglu canal, a 134.2 kilometre waterway that took more than four years to build, cutting through mountains and rivers in the country's southwest to create a direct link to the sea, according to a report by PTI. The canal connects Nanning, capital of the Guangxi Zhuang Autonomous Region, with the Beibu Gulf, giving the region a much shorter route for trade with Southeast Asia.
Built at a cost of 72.7 billion yuan, or about USD 10.75 billion, the canal is part of the New International Land Sea Trade Corridor, a route meant to link China's inland provinces with ASEAN and other global markets.
How the canal was built
Much of the waterway was created by widening, deepening and straightening existing rivers, while some stretches needed excavation through dry land and mountainous terrain, according to PTI. One of the biggest engineering challenges was a 65 metre difference in water levels along the route. To solve this, builders constructed three navigation hubs, each fitted with twin line ship locks, to raise and lower vessels as they moved along the canal.
The canal is designed to carry vessels of up to 5,000 tonnes and cuts more than 560 kilometres off the older inland route to the sea through ports in Guangdong province.
Why the shorter route matters
Southwest China has historically lagged behind the country's richer eastern coastal regions, partly because of the higher cost of moving goods to seaports. The Pinglu canal is expected to change that by giving the region a direct and much shorter path to international markets. Coal, ore, grain, new energy materials and automobile parts from the region are now expected to reach global markets faster.
The canal is expected to cut logistics costs by 18 to 30 per cent and save more than 5 billion yuan, or roughly USD 1.4 billion, in transportation expenses every year.
Trade with ASEAN keeps growing
China's trade with ASEAN crossed USD one trillion for the first time last year. In the first seven months of 2026, bilateral trade between the two reached USD 744.41 billion, up 24.7 per cent from the year before and making up 21.8 per cent of China's total foreign trade in that period.
Lu Xinning, vice chairperson of the Guangxi regional government, said the canal creates a new link between China's 1.4 billion consumers and ASEAN's nearly 700 million people. "Its significance could go beyond the movement of goods," Lu said, adding that it could encourage more cross border investment and deeper integration of regional supply chains, as quoted by PTI.
A first for China since 1949
Officials describe the Pinglu canal as the first river to sea canal project planned and coordinated at a national level since the founding of the People's Republic of China in 1949. It opened in the first year of China's 15th Five Year Plan, a policy period running from 2026 to 2030 that focuses on more balanced regional growth and greater trade openness.
Environmental measures built into the project
Builders also factored in environmental concerns during construction. More than 98 per cent of the nearly 315 million cubic metres of earth and rock dug out for the canal was reused elsewhere. The canal also includes a fish passage stretching more than 480 metres, along with a separate crossing built for land animals such as leopard cats and squirrels, allowing wildlife to move safely across the waterway's path.
With the canal now open, China is looking to strengthen its trade position in the region while also addressing the long standing cost disadvantage faced by its landlocked southwestern provinces.
Inputs from PTI
